The digitization of plant operations in the industrial sector is accelerating for three reasons, according to the research and advisory firm Verdantix: a global skills shortage, an aging workforce, and more workers retiring.
In response to those trends, 83% of firms will increase spending on operational excellence initiatives in 2023, the London-based firm said. And more specifically, industrial firms are turning to artificial intelligence (AI) and machine learning (ML) in their efforts to maximize data utility.
Verdantix drew those conclusions from interviews with 301 senior executives in North America, Europe, South America, South Africa, India, Australia, China, and the Gulf States responsible for operational excellence initiatives at firms with revenues of at least $250 million. The report was titled “Global Corporate Survey 2022: Operational Excellence Budgets, Priorities & Tech Preferences.”
The report also found that 89% of respondents said cost-cutting is a significant or very significant influence on sparking their efforts to boost efficiency and cut downtime on machinery using digitization tools like: mobile apps, enterprise asset management, and asset performance management software.
“Labour shortages have gripped industrial firms worldwide since the COVID-19 pandemic subsided and put even greater pressure on heavy industry to explore digital solutions,” Joe Lamming, industry analyst at Verdantix, said in a release. “Expanding data acquisition, establishing robust data management processes, and driving advanced analytics will help get the best hands, eyes, and ears on-site at the right time. Successful industrial software vendors will offer scalable, self-service solutions to key pain points where data management and integration with existing systems is prioritized.”