Manufacturing companies are also looking to leverage technology to manage operational costs. Automation and robotics offer ways to both increase efficiency and improve product and service quality. Nearly one in three respondents named these technologies as having the highest impact for them in the next two years.
Meanwhile, the importance and visibility of newer technologies such as AI, IoT and blockchain are growing quickly in manufacturing, as manufacturing companies explore the applications of these new technologies.
Long-term value to be measured across four criteria instead of two
According to the 2019 EY CEO Imperative Study, investors and boards are increasingly demanding that CEOs demonstrate leadership and corporate action in responding to some of humanity’s greatest challenges, with cybersecurity, technology-induced job losses and climate change among the most pressing imperatives. As such, manufacturing companies are beginning to think beyond financial and customer value when measuring performance. Nearly 9 out of 10 respondents say they either have metrics in place or will be adopting them in the next 12 months to measure talent value, while more than 8 out of 10 indicate the same in terms of measuring social value.
Manufacturing companies that can both measure their long-term value across these four criteria and develop effective strategies to communicate them will find themselves better positioned to advance their growth imperative.