Industry outlook

Manufacturing executives’ outlook reported on future business prospects sees the lowest average score since October 2022 when asked to rank their optimism one to 10. The average optimism score (6.6) decreased over 6% compared to February 2024. The current national political climate (43%) is the leading factor contributing to decreased optimism. Other top factors include interest rates (41%) and poor economic conditions (31%).

Manufacturing executives recognize the importance of data as a driver of their business initiatives, as 75% of respondents agree data is a key consideration in their business strategy. However, this recognition is not translating into widespread adoption of data management processes. Only 56% of manufacturing executives have a data strategy in place that supports their business initiatives, highlighting the gap between awareness of data’s importance and taking steps to utilize it effectively. A majority of executives (57%) report lacking an internal team or resources to manage the data is preventing them from implementing these strategies.

A data dilemma

Data accessibility and reliability are two glaring issues manufacturers face. Only 60% of respondents agree that it’s easy to find the data they need in order to do their job. Further, executives reported in our manufacturing industry pulse an average score of 7.2 out of 10 when asked to rate their data’s trustworthiness. Poor data collection, processing and storage practices (69%) is the top reason executives distrust their data. Other high-ranking responses include lacking data literacy (54%) and an absence of data governance (38%).

Data strategy’s competitive edge

Manufacturers are failing to use their data to their advantage, and their competitive positioning is suffering. Only 37% of executives are using their data as a competitive advantage. In addition, their ability to keep pace with competitors that leverage emerging technologies is impacted. Only 54% of executives feel they are on par with, or ahead of, their peers when it comes to adopting and implementing generative AI – 28% feel they are falling behind.

Implementing a data strategy significantly influences executives’ perception of their data. When surveyed on a scale of one to 10, executives’ trust in data improves 25% when a proper data strategy is in place. Further, data organization increases 32%, data security rises 17% and the ability to understand the customer improves 15% when comparing manufacturers with a data strategy to those without.