Your best-fit buyers aren’t waiting for a cold call. They’re engineers comparing specs at 10pm, procurement managers building a supplier shortlist, and plant managers asking ChatGPT who can run a tight-tolerance job in under six weeks. If your marketing isn’t built for how they buy, you’re relying on referrals and hoping the phone rings.
Why lead generation is different for manufacturers
Manufacturing sales don’t look like other B2B sales. A few things make lead generation trickier:
Long sales cycles. Qualifying a new supplier can take months, sometimes longer in regulated industries like aerospace, defense, and medical devices.
Multiple decision-makers. Engineering, quality, procurement, and operations all weigh in, and each cares about something different.
Technical buyers. Engineers want specs, tolerances, materials, and certifications, not marketing fluff.
Relationship-driven deals. Once a buyer qualifies you, they tend to stick around. That makes every new account worth fighting for.
The upside? Because each customer is so valuable, a lead generation program that brings in even a handful of the right accounts each year can pay for itself many times over.
1. Define your ideal customer profile
“Anyone who needs machined parts” isn’t a target market. Get specific about who you want more of. Look at your best current customers and ask:
Which industries are they in? (Aerospace, medical devices, automotive, energy, industrial equipment)
What size are they, and what are their typical order volumes?
Which capabilities do they rely on you for most?
Which certifications or compliance requirements matter to them? (AS9100, ISO 13485, ITAR, IATF 16949)
Which accounts are the most profitable, not just the biggest?
Here’s an example: a precision machine shop might find that its most profitable work comes from medical device OEMs that need low-volume, high-mix titanium components. That’s a much sharper target than “medical,” and it shapes every piece of marketing that follows.
Procurement and supply chain: pricing, lead times, capacity, supplier risk, location
Operations and executives: reliability, scalability, long-term partnership potential
Your website and content should give every one of these people what they’re looking for, because they’re all checking you out, usually without telling you.
3. Turn your website into a lead generation engine
For most manufacturers, the website is the first real sales conversation. Make sure yours includes:
Capability pages for each core process (CNC machining, injection molding, sheet metal fabrication, assembly), with equipment lists, tolerances, materials, and part size ranges
Industry pages that speak directly to each target market and its requirements
Certifications and quality information that’s easy to find, not buried in a PDF
A frictionless RFQ form that lets buyers upload drawings and specify quantities and timelines
Proof:case studies, part photos, and customer results
Quick gut check: if an engineer landed on your homepage, could they tell within 10 seconds whether you can make their part? If not, that’s your first fix.
4. Get found in search and AI tools
Engineers and buyers search for very specific things, like “5-axis CNC machining titanium” or “ISO 13485 contract manufacturer.” Those are the searches you want to win.
Target keywords that combine a process, material, industry, or certification
Build a dedicated page for each capability and industry instead of one long list
Add FAQ sections and FAQ schema markup to answer common buyer questions
Keep your company details consistent across your website, LinkedIn, Thomasnet, and industry directories
5. Create technical content that builds trust
Content is where you prove you know your stuff before a buyer ever talks to you. The most effective manufacturing content is practical and specific. A few ideas:
Design guides, like “Designing plastic parts for injection molding: wall thickness, draft, and ribs”
Material comparisons, like “304 vs. 316 stainless steel: which is right for your application?”
Cost explainers, like “What drives the cost of a CNC machined part?”
Process comparisons, like “Die casting vs. CNC machining for low-volume production”
Case studies that show the problem, your solution, and measurable results
Pro tip: your engineers and estimators already answer these questions every day. A 20-minute interview with one of them can turn into a month of content.
6. Use paid media to reach the right accounts
Organic search builds over time. Paid media puts you in front of buyers right now.
Google Ads: Capture high-intent searches like “custom metal stamping supplier” when buyers are actively looking. (Our guide to PPC for logistics companies covers many of the same principles.)
LinkedIn Ads: Target by job title, industry, and company size to reach engineers and procurement leaders at your ideal accounts.
Retargeting: Stay top of mind with people who visited your capability pages but didn’t submit an RFQ.
7. Focus on your highest-value accounts with ABM
If a small number of accounts could transform your business, account-based marketing (ABM) is worth a look. Instead of casting a wide net, you build campaigns around specific target companies and the people on their buying committees. We break down how this works in our post on account-based marketing for the packaging industry, and the same framework applies to manufacturers.
8. Make trade shows pull double duty
Trade shows are still a major lead source for manufacturers, but too many companies treat them as a one-time event. Promote your booth before the show, capture and follow up on every conversation within days, and turn what you learned into content afterward. Our trade show marketing guide walks through the full process.
9. Nurture leads through a long sales cycle
Most manufacturing leads aren’t ready to buy the day they find you. Nurturing keeps you in the conversation until they are.
Use your CRM (like HubSpot) to track every lead, RFQ, and touchpoint
Set up email sequences that share relevant case studies, guides, and capability updates
Score leads based on fit and engagement so sales focuses on the right people
Agree with sales on what counts as a qualified lead, and when marketing hands it off
Common lead generation mistakes manufacturers make
Relying only on referrals and trade shows
A website that lists capabilities but never explains who they’re for
RFQ forms that are long, confusing, or don’t accept file uploads
Generic content that could apply to any manufacturer
No follow-up process for leads that aren’t ready to buy yet
Questions we’ve gotten from manufacturers about lead generation
Q: What’s the best lead generation channel for manufacturers? A: It depends on your buyers, but for most manufacturers, a strong website paired with SEO delivers the best long-term return. Google Ads and LinkedIn Ads can speed things up, and trade shows remain valuable for relationship building.
Q: How long does it take to see results? A: Paid campaigns can drive RFQs within weeks. SEO and content usually start to move the needle within 3-6 months and keep compounding from there. Because manufacturing sales cycles are long, expect revenue to lag behind lead volume.
Q: Is LinkedIn worth it for manufacturers? A: Yes, especially for reaching engineers and procurement leaders at specific companies. LinkedIn’s targeting by job title, industry, and company size makes it one of the best tools for B2B manufacturers, even if the cost per click is higher than other platforms.
Q: We’re a small manufacturer. Where should we start? A: Start with your website. Make sure your capabilities, industries, and certifications are clear, and that your RFQ form is easy to use. Then pick one channel, like SEO or Google Ads, and do it well before adding more.
An application engineer has a problem to solve by Friday. She needs a component that holds tolerance at high temperature, ships in under eight weeks, and won’t trigger a requalification. She is not going to call your sales team to find out if you have it. She’s going to search, open three datasheets, download a CAD model, and maybe ask ChatGPT for a shortlist. If your company isn’t part of that research, you’re not part of the decision. That’s the first rule of marketing to engineers.
Engineers are some of the most thorough, skeptical, and self-directed buyers in B2B, and they reward suppliers who make their jobs easier. Here’s what they need from you, and how manufacturers can deliver it.
Key takeaways
Engineers do most of their supplier research online, before sales is involved.
Specs, data, and application proof beat polished brand claims every time.
Brand familiarity still matters: engineers lean toward suppliers they recognize.
Your website, technical content, and AI search visibility now do the work a sales rep used to do.
What is marketing to engineers?
Marketing to engineers is the practice of reaching design, application, and manufacturing engineers with the technical information they need to evaluate, specify, and recommend a product or supplier. It’s less about persuasion and more about removing friction: making specs easy to find, proving performance, and showing up wherever engineers research.
It’s a core piece of any B2B manufacturing marketing program, because in most industrial purchases the engineer is the person who puts your part on the drawing, or takes it off.
How do engineers research suppliers today?
Engineers spend 62% of the buying journey researching online, according to the 2026 State of Marketing to Engineers study from TREW Marketing and GlobalSpec. That same research found technical publications and vendor websites are still their top sources of product information.
The broader B2B picture points the same direction. A Gartner survey of 646 B2B buyers, published in March 2026, found 67% prefer a rep-free buying experience, and 45% used AI during a recent purchase.
In practice, an engineer’s research usually looks like this:
Define the requirement (performance, material, size, compliance, lead time).
Search Google, distributor sites, industry directories, or an AI tool for candidate suppliers.
Compare datasheets, specs, and certifications side by side.
Download CAD models, application notes, or test data.
Reach out only once a supplier looks like a real fit.
By the time an engineer fills out your contact form, they’ve often narrowed the field to two or three options. Your marketing decides whether you’re one of them.
What do engineers want from supplier marketing?
Specs they can find in seconds
Hiding datasheets behind a form or a “contact us for details” button is one of the fastest ways to lose an engineer. Put key specifications on the product page in plain HTML text, not just inside a PDF. It helps engineers, and it helps search engines and AI tools understand what you make.
Proof, not adjectives
“High quality” and “industry leading” mean nothing to an engineer. Test results, tolerances, failure rates, certifications (ISO 9001, AS9100, IATF 16949), and application stories mean a lot. If you can’t prove a claim with a number or a standard, cut it.
Application context
Engineers want to know how your product performed in a situation like theirs. Short application notes and case studies that explain the problem, the constraint, and the result are some of the most useful content a manufacturer can publish.
Tools that save time
CAD downloads, configurators, cross-reference charts, selection guides, and calculators all earn repeat visits. They also signal that you understand how engineers actually work.
Direct access to expertise
When an engineer is ready to talk, they want to talk to someone technical. Make it clear how to reach an application engineer, and route technical questions to people who can answer them.
Why does brand still matter to engineers?
Engineers like to think they choose purely on specs, but familiarity plays a real role. In the TREW and GlobalSpec research, 53% of technical buyers said brand familiarity influenced their most recent purchase, and 70% said they were more likely to choose the better-known brand when evaluating technically similar solutions.
That’s the case for consistent visibility: publishing technical content, showing up in trade publications, being present at the right trade shows, and staying in front of engineers between projects. When two parts look equal on paper, the supplier they’ve heard of usually wins.
How is AI search changing how engineers find suppliers?
More engineers now start with questions like “Which manufacturers make PTFE seals rated for cryogenic service?” in ChatGPT, Perplexity, or Google’s AI Overviews. They don’t fully trust the answers yet (the same research put trust in AI answers at 4.7 out of 10), but they use them to build a starting list.
To show up in those answers, manufacturers need:
Product and capability pages that state clearly what you make, for which applications, and to what specifications.
FAQ-style content that answers the exact questions engineers ask.
Consistent company and product information across your site, distributor listings, and directories.
Mentions in trade publications and industry sites that AI tools treat as credible.
Marketing to engineers: what works and what doesn’t
What works
What doesn’t
Ungated datasheets and specs in HTML
Specs locked behind a form
Test data, standards, and certifications
Vague claims like “best in class”
Application notes and case studies
Generic brochures
CAD downloads and selection tools
“Call for details”
Access to an application engineer
Routing every question to sales
Steady presence in trade media and search
One big push per year
Where should manufacturers start?
If your team is small, start where engineers spend the most time: your website. Audit your top product pages and ask three questions. Can an engineer find the key specs without downloading anything? Is there proof behind every claim? Is it obvious how to get a technical answer?
From there, build a steady stream of technical content, starting with the questions your sales and application engineers answer most often. Then connect that content to a broader manufacturing lead generation program so that research turns into real conversations.
Make it easy to choose you
Engineers don’t want to be sold to. They want to be informed, quickly and accurately. Manufacturers that make specs easy to find, back up every claim, and stay visible where engineers research will earn more spots on more shortlists.
Give engineers the technical information they need without friction: ungated specs, test data, certifications, application notes, and CAD files. Then stay visible in search, AI tools, and trade publications so they recognize your name when it’s time to choose.
Should manufacturers gate datasheets?
In most cases, no. Engineers expect datasheets to be freely available, and gating them often sends engineers to a competitor. Gate deeper resources like design guides or calculators instead, if you gate anything.
Do engineers trust AI search results?
Not fully yet. The 2026 State of Marketing to Engineers research rated technical buyers’ trust in generative AI answers at 4.7 out of 10. Engineers use AI tools to build a starting list, then verify with datasheets and vendor websites.
How long does it take to see results from marketing to engineers?
Most manufacturers see early gains in search visibility and engagement within three to six months. Pipeline impact usually follows over six to twelve months, depending on sales cycle length.
Only 20% of manufacturing marketers call their content strategy very effective. Most (67%) say it’s moderately effective.
Video (74%) and case studies (45%) are the formats manufacturers rate most effective.
In-person events, company blogs, and webinars are the top organic channels. Search ads lead paid.
76% of manufacturing marketers use generative AI, but only 7% have built it into daily workflows.
B2B buyers are shifting to AI search, so manufacturers need content AI tools can find, trust, and cite.
Ten years ago, the big question was whether manufacturers would adopt digital marketing at all. That question is settled. Manufacturers now run blogs, post on LinkedIn, produce video, and use AI tools at roughly the same rate as other B2B marketers. The question for 2026 is whether all that content is actually moving buyers.
The latest manufacturing research from the Content Marketing Institute (CMI) and MarketingProfs gives a clear answer. Sometimes. Their Manufacturing Content Marketing Benchmarks, Budgets, and Trends report surveyed manufacturing marketers on strategy, formats, channels, measurement, and AI. The picture is an industry that has built the machine but hasn’t fully tuned it.
The infographic below sums up the findings. Underneath it, we break down what each one means for your 2026 plan.
Only 20% of manufacturing marketers call their content strategy very effective. Video (74%) and case studies (45%) are the top-rated formats, and 85% say LinkedIn delivers the most social value. Data from CMI and MarketingProfs.
What is manufacturing content marketing?
Manufacturing content marketing is the practice of creating and distributing useful content, like technical articles, case studies, videos, data sheets, and webinars, that helps engineers, procurement teams, and distributors research, compare, and choose a manufacturer. Done well, it shortens long sales cycles by answering buyer questions before a sales conversation starts.
Most manufacturing content strategies work, but only just
Just 20% of manufacturing marketers say their content strategy is very effective. Another 67% say it’s moderately effective, and 13% say it’s not very or not at all effective.
When marketers explained why their strategy falls short, three reasons rose to the top.
It isn’t tied to the customer journey (47%)
It isn’t data driven (46%)
It lacks clear goals (40%)
None of these are about writing better blog posts. They’re about planning. Industrial buying involves engineers, procurement, operations, and often distributors, and each group needs different content at different stages. A strategy built around a publishing calendar instead of the buying journey will produce content without producing pipeline.
What to do in 2026. Map your content to the questions each buyer role asks, from early problem research through spec review and vendor selection. Our manufacturing marketing work starts here for exactly this reason.
What works: video, proof, and technical depth
Manufacturers use plenty of formats. The ones that work best are a shorter list.
Format
Used
Rated most effective
Video
85%
74%
Case studies and customer stories
70%
45%
E-books and white papers
44%
43%
Short articles and posts
89%
36%
Short articles are the most-used format but rank near the bottom for results. Video and case studies do the heavy lifting because they show rather than tell. An engineer can watch a product perform, and a buyer can see how a similar company solved a similar problem.
Two other numbers stand out. 71% of manufacturers publish product technical sheets and data sheets, essential content for spec-driven buyers. Only 14% publish original research, which leaves a wide-open lane for any manufacturer willing to survey customers or share proprietary data. Original data is also one of the strongest ways to get cited by AI search tools.
What to do in 2026. Invest in fewer, deeper pieces. Turn your best customer results into case studies, film your products and processes, and consider one original research piece a year.
Channels that deliver for manufacturers
Here’s where manufacturing marketers say they get the best results.
Organic
In-person events (51%)
Company blog (49%)
Webinars (49%)
Email (45%)
Paid
Search ads, SEM and PPC (68%)
Sponsorships (48%)
Social media ads (42%)
Partner emails (37%)
Trade shows and events still matter in an industry built on relationships, and content makes them more productive before and after the booth. Our approach to trade show marketing connects the two.
On social, the gap is huge. 85% of manufacturing marketers say LinkedIn delivers the most value, compared with 40% for YouTube. If your buyers are engineers, plant leaders, and procurement teams, that’s where they are.
The blog also earns its spot. It’s the hub that search engines, AI tools, and your sales team all draw from, and it’s where your other channels should point.
What needs work: resources, results, and measurement
The challenges manufacturers report haven’t changed much in a decade, but the numbers are specific.
66% struggle to create content that prompts a desired action
57% say lack of resources is their most pressing challenge
64% have difficulty attributing ROI and tracking customer journeys
54% don’t have a scalable model for creating content
Only 21% say they have the right technology
Only 45% agree they measure content effectiveness well
Small teams, busy subject matter experts, and long sales cycles make content hard to produce and harder to measure. The fix usually isn’t more content. It’s a repeatable process for getting expertise out of engineers’ heads, plus tracking that connects content to real conversations and deals. Account-based marketing can help by focusing content on the accounts that matter most and making results easier to see.
What to do in 2026. Pick two or three metrics tied to pipeline, such as qualified form fills, demo or quote requests, and content-influenced opportunities, and report on those instead of traffic alone. Our manufacturing lead generation playbook goes deeper.
AI in manufacturing content marketing
AI adoption among manufacturing marketers is high but shallow. 76% use generative AI tools, but just 7% say AI is integrated into daily workflows. Another 51% experiment on an ad hoc basis, and 42% say their teams don’t formally use AI at all.
Meanwhile, buyers have moved faster. According to G2’s 2025 buyer research, nearly 8 in 10 B2B buyers say AI search has changed how they conduct research, and 29% now start research in tools like ChatGPT more often than Google.
That changes what good content looks like. AI tools pull answers from sources that are clear, specific, and credible. For manufacturers, that means:
Answering real buyer questions directly, near the top of the page
Publishing specs, tolerances, materials, and certifications in plain text, not only in PDFs
Backing claims with case studies, data, and named experts
Keeping key pages current, since AI tools favor fresh, accurate information
This is the idea behind AI optimization (AIO), and it builds on SEO rather than replacing it. Learn more about our approach to SEO and AI optimization.
Where manufacturing marketing budgets are going
Asked where they planned to increase investment, manufacturing marketers put video first (62%), followed by thought leadership content (50%). AI for content optimization, in-person events, and paid advertising tied at 35% each.
The pattern is clear. Manufacturers are betting on content that shows expertise and builds trust, which is exactly what both human buyers and AI search reward.
How to improve your manufacturing content marketing in 2026
Tie every piece of content to a stage of the buying journey and a specific buyer role.
Lead with proof. Make case studies, video, and technical detail the core of your program.
Treat LinkedIn as your primary social channel, and put your engineers and executives on it.
Build for AI search with clear answers, structured technical information, and original data.
Measure what sales cares about so content earns its budget.
Make AI part of the process, not a side experiment, for research, drafting support, and optimization.
Frequently asked questions
What is the most effective type of content for manufacturers?
Video is rated most effective by 74% of manufacturing marketers, followed by case studies and customer stories (45%) and e-books and white papers (43%).
What is the best social media platform for manufacturing companies?
LinkedIn. 85% of manufacturing marketers say it delivers more value than any other social platform. YouTube is second at 40%.
What is the biggest content marketing challenge for manufacturers?
Creating content that prompts buyers to take action is the top content challenge (66%). Lack of resources is the most pressing organizational challenge (57%).
How are manufacturers using AI in content marketing?
76% of manufacturing marketers use generative AI tools, but only 7% have integrated AI into daily workflows. Most teams are still experimenting.
How do manufacturers measure content marketing ROI?
Many struggle with it. 64% report difficulty attributing ROI. The best approach is to track pipeline-focused metrics such as qualified leads, quote requests, and content-influenced deals.
Amazon has changed the way we do business. Supply chain companies need to get on board with Amazon’s e-commerce strategy or risk losing business.
It is no secret that Amazon has dominated the online retail industry. Amazon Prime has shifted consumer expectations so that waiting 5-7 business days for your online order is no longer acceptable. With people now ordering anything from couches to groceries online, companies need to get on board with this shift to e-commerce or risk missing out on many sales.
Consumers now more than ever want access to more inventory no matter if they are shopping online or in stores. Many companies report the struggle of trying to keep up with this retail giant, and current-day supply chains have certainly felt the impact.
Historically, supply chains have been set up to support a network of stores using the multichannel business model. This includes retailers managing their different channels almost as separate businesses. These channels are what businesses use to get their goods and services to their consumers. For example, many retailers use brick-and-mortar stores as well as e-commerce when it comes to selling.
So, what’s the problem with this? Well, the customer’s experience can vary depending on the shopping channel they choose. Retailers often keep their online and brick-and-mortar inventory separate, which can lead to a frustrating shopping experience for the customer.
I am sure at some point in your life you have had the experience of walking into a store looking to return an online order only to find out it must be returned to the company through the mail. Customers do not view a brand in silos, and the same selection of inventory is expected whether they are shopping online or in a physical store. Companies also run the risk of losing a sale if the exact item the consumer wants is unavailable or sold out. This is one area that allows Amazon to shine because they maintain one pool of inventory that is not separated by different channels of business.
A 2016 UPS survey found that, for the first time, shoppers revealed they bought more of their purchases online than in stores. It’s hard to tell what is the main driver behind this shift, but you can’t help but think of Amazon. It’s hard to comprehend how other companies not only compete but just even keep up with the trillion-dollar company with a revenue of $10.07 billion in 2018.
This is where the omnichannel business model comes into play. Omnichannel combines physical and online commerce to create a more seamless shopping experience for the consumer. While this business model is not a result of Amazon, it certainly puts companies in a better position to compete. The goal here is to provide the same customer experience throughout each channel while ensuring the product reaches the customer as fast as possible.
Characteristics of an omnichannel business model include:
Buy online pick up in stores
Stores shipping to other stores
Dropshipping
Order fulfillment from store
Nordstrom finding ways to differentiate from the competition
Online shopping provides many benefits to consumers, but it does not come without its own challenges. It is fairly common to buy a shirt online only to find out it is the wrong size. It can be a hassle to mail the item back, and consumers often opt out of this and chalk the purchase up to a loss. Nordstrom understands this pain point and took it upon themselves to offer a solution by creating service hubs called Nordstrom Local. The sole purpose of Nordstrom Local is to make the online shopping experience effortless. While these hubs do not contain designated inventory, they provide a handful of services to the customers.
They offer:
Pickups
Returns
Stylist
Dressing rooms
Tailoring services
Same-day delivery (if ordered before 2 p.m.)
Espresso drinks, juices, wine & beer
As a consumer, what more could you ask for? The idea is that you order a variety of clothes online and have them delivered to Nordstrom Local. Here you can try on your purchases in their dressing rooms. If it doesn’t fit, no problem — they’ll mail it back for you. Need it hemmed? There’s a tailor on-site.
Nordstrom has held its own in the retail space. With 2018 revenue reaching $15.5 billion, it is hard to argue with their success. They must continue to innovate and find new ways to connect consumers to their product. Trying out this concept in Los Angeles has proven to be successful, and they are looking at opening up hubs in New York next.
Kohl’s joins forces with Amazon
Kohl’s, like many retail stores, welcomes any opportunity to increase foot traffic. Over 1,000 of their stores are now accepting returns from Amazon. Again, we see a pain point of online shopping removed for the consumer. You can bring your unwanted Amazon item to Kohl’s, and they will pack, label, and ship the item at no cost. The hope is that Amazon customers will flock to Kohl’s and hopefully buy some of their inventory on the way.
Their revenue has continued to rise over the past four years and reached 20 billion in 2018. This is a bold idea that can set Kohl’s apart from the competition by delivering a service that is unique to them. Amazon needs a way to keep its customers happy and Kohl’s needs to increase foot traffic, so it appears to be a win-win for all parties involved — including the consumer.
While Kohl’s new idea offers fewer services than Nordstrom’s, they are opening themselves up to a wider consumer market, and with this will likely come more sales. They have addressed the expected increase in expenses that will come with having to hire more employees and spending more on logistics, but the expected payoff is potentially massive.
Comparing strategies
It’s hard to tell which strategy will prove to be more profitable. The only thing that is for certain is that the shift toward e-commerce is not slowing down anytime soon, so companies need to look at how they connect consumers to their product. If the goal is to get your product to the consumer, then your supply chain needs to be tailored to this objective.
Amazon may have the upper hand now, but you never know what new idea could pop up in a few years. In the meantime, companies are faced with the harsh reality of ever-growing competition. Consumers are now hopping on their computers or mobile devices to choose from a plethora of inventory.
Amazon is not completely to blame when it comes to the evolution of consumer expectations, but they have certainly impacted them. Companies wanting to compete are left to make tough but critical decisions on what their next move will be.
This article was written by Emily Standish, an MBA student at the Peter T. Paul College of Business and Economics at the University of New Hampshire, specializing in Finance and Information Systems & Business Analytics. She graduated from Merrimack College in 2017 with a B.S. in Business Administration and Management with a concentration in Finance and currently works as a Corporate Financial Analyst.
The analog supply chain model is outmoded and inefficient. Here’s how digital transformation is reinventing manufacturing.
Highlights:
Manufacturers are increasingly adopting artificial intelligence and machine learning technologies.
The traditional analog supply chain model is unable to compete with digital disruptors in a volatile market.
Digital transformation empowers manufacturers to create sought-after personalized experiences for buyers.
Digital transformation isn’t just the latest buzzword in supply chain circles. It’s an ongoing trend that’s revolutionizing manufacturing and supply chain efficiency. According to a recent report from Accenture, 78% of CFOs are spearheading initiatives to improve efficiency through adoption of digital technology.
Digital transformation empowers manufacturers to meet the evolving demands of a customer base with rising expectations for customer service. The digital technologies that are emerging today offer analytics that are vital for forecasting and understanding how to shift the balance of supply and demand.
3 ways that the analog supply chain model is outdated
Supply chain management expert Frank Meerkamp writes, “The traditional supply chain is a tapestry built on an outdated analog network – yet it exists in a digital world.” The difficult truth is that in today’s climate of rapidly shifting market demands and an increasingly interconnected world, manufacturers must embrace digital transformation or be left behind.
Before we look at how digital transformation can benefit manufacturers, let’s take a moment to examine the challenges presented by an outdated analog supply chain.
1) Market volatility
Today’s markets move at a breakneck pace. Thanks to a constantly shifting geopolitical landscape, changing regulations and sanctions, and the unpredictability of cost and supply, manufacturers face market volatility, uncertainty, and a high level of risk. The analog supply chain model leaves companies without the agility to respond and pivot quickly and to operate efficiently on a global or regional scale.
2) Competition from digital disruptors
Perhaps the most powerful example of the way in which digital disruptors are challenging legacy leaders is the Amazon effect. Amazon has effectively situated itself as an innovator and easily has outpaced rivals in multiple sectors. Companies that continue to embrace an analog supply chain model simply cannot compete with those that have fully embraced digital transformation.
3) Rising customer expectations
While it can be tempting for B2B companies to bury their heads in the sand, believing that digital marketing is purely a B2C necessity, the reality is that supply chain companies must embrace digital marketing as part of their digital transformation. Buyers expect hyper-personalized experiences, as well as customized products, and the kind of execution that’s impossible for manufactures to deliver within the analog supply chain framework.
4 ways digital transformation addresses today’s challenges for manufacturers
As the complexity of the supply chain increases, embracing digital transformation is the clearest path to success for manufacturers. While companies that cling to an outdated analogue model struggle with eroding margins and an inability to compete, those that establish “a data-driven supply chain,” writes Meerkamp, “can gain advantages in increased forecasting accuracy, identifying and resolving issues in real time, creating new segmentations, and delivering on consumer requirements with speed, specificity, and scale.”
In short, digital transformation uses data to drive visibility and agility for manufacturers, allowing them to operate efficiently and profitably.
1) Establishing visibility and centralized control
The AI and machine-learning technologies available today enable manufacturers to meet the challenges presented by an increasingly complex supply chain. Massive sets of data can be captured and processed, providing invaluable real-time visibility. Not only that, but manufacturers can leverage this visibility to centralize data and decision-making.
2) Creating new performance engines
Thanks to the ability of AI technologies to process enormous quantities of data, digital transformation enables “powerful resolution engines, based on real-time root-cause analyses, to automate the execution of supply chain functions, and optimize transactions to meet strategic objectives,” says Meerkamp. These technologies facilitate the forecasting and immediate decision-making necessary for manufacturers to operate efficiently.
3) Facilitating agility
Today’s marketplace moves faster than ever, and market forces are constantly shifting. Agility has never been more important for companies to compete. Intelligent technologies allow supply chain companies to establish a management model that is collaborative, data-driven, and platform-based. Digital transformation enables the sharing of qualitative information as well as real-time data and implications. This in turns enables agile management, ready to meet the shifting demands of the marketplace.
4) Developing personalization and flexibility
One of the biggest challenges manufacturers face today is the increasing buyer expectations of personalized experiences. AI technology enables the creation of segmentation strategies, addressing buyers’ personalized needs based on various factors, including channel, location, and service level. Real-time visibility into market data also leads to greater insight into buyers’ needs and how to meet them.
Organizations that embrace digital transformation are empowered to create personalized experiences for their customers and operate with the agility, visibility, and centralization necessary to compete in today’s marketplace.
Implementing robotics and automation for manufacturing can be costly and a challenge for public perception – but, ultimately, these technologies are crucial assets for the industry.
Highlights:
Hurdles companies face concerning automation include public perception, potential safety hazards, and cost.
However, robots actually make factories safer and protect human workers from having to perform dangerous tasks.
Advantages of automation include decreased long-term costs, reduced error rate, improved productivity, and enhanced data collection.
As machine learning, or Artificial Intelligence (AI), gains sophistication and technologies continue to improve, supply chain companies are increasingly needing to evaluate the benefits and pitfalls of robotics and automation for manufacturing.
While current evidence suggests that experts are correct in predicting that automation will prove a significant competitive advantage, manufacturing companies are often faced with equally significant hurdles when it comes to implementing these technologies.
So, on balance, are robotics and automation for manufacturing assets, or do they present insurmountable hurdles? Let’s look at the case for each.
3 challenges of robotics and automation for manufacturing
1) Perception
When companies begin considering or implementing robotics and automation for manufacturing, they do so in the context of a public steeped in the kind of sci-fi lore that breeds hysteria on this issue. While public fears of Cylons and the like taking manufacturing jobs may seem like frivolous concerns, the battle that companies face when it comes to public perception is quite significant and should not be overlooked.
In addition to the more hysterical fears of robot uprising, manufacturing companies are faced with the need to combat negative public perception and employee fears when it comes to replacing traditional manual labor with capitalized assets. In short, the fear that “robots are taking our jobs” should not be underestimated as a challenge faced by companies considering manufacturing automation.
2) Dangers
In addition to cultural perceptions of robots as potentially threatening, there are real safety concerns when it comes to robotics and automation for manufacturing. A notorious accident in a Volkswagen factory in Germany, in which a worker was killed by a malfunctioning robot, has been widely reported in the media and serves as a cautionary tale about the dangers posed by automation.
Manufacturers seeking to implement automation are faced with the task of ensuring that factories remain safe for humans and robots to work collaboratively. This requires investment in safety features, as well as training and oversight.
3) Implementation costs
Perhaps the biggest hurdle to companies’ acquisition of robotics and automation for manufacturing is the cost. While these technologies are becoming more affordable, the high initial capital outlay presents a serious barrier, particularly for smaller and midsized manufacturers.
In addition to the costs of equipment, there are expenses associated with maintenance, compliance, software, and human worker training. Companies may be aware of the long-term benefits of automation but unable mount the initial costs or stomach ongoing expenses.
Robotics and automation for manufacturing: the case for overcoming the hurdles
Now it’s time to look at how these technologies are assets and whether it’s worth facing the challenges associated with implementing them.
Robots aren’t here to replace humans.
When it comes to combatting the public perception that robots will render humans obsolete, there’s one simple truth that sums it up best: robots will not replace humans. In fact, automation works best alongside human workers and maximizes the strengths of each, leading to enhanced employee value. Automation frees up human workers to work in their core competencies, focusing on strategic work, oversight, and administration.
Automation helps make factories safer.
While the dramatic examples of robots causing injury and death are harrowing, and deserve attention, it’s important not to sweep under the rug the fact that automation actually makes factories much safer for human workers. By performing tasks that put humans at risk, robots can remove workers from traditionally hazardous situations or exposure to harmful materials.
As these technologies develop, they are becoming increasingly safe and include provisions that facilitate working collaboratively with humans. Robotics can increase access to difficult or dangerous locations. Improvements in sensors, dexterity, artificial intelligence, and trainability are helping to ensure that robotics and automation for manufacturing are safe.
Automation as a value driver
While costs associated with implementation and maintenance may be significant, arguably, with the competitive advantages presented by robotics and automation for manufacturing, companies can’t afford not to automate.
Robots improve the speed and accuracy of routine operations, reducing costly error rates and increasing productivity. They decrease long-term costs, provide labor utilization and stability (particularly when labor is in short supply), and optimize picking, sorting, and storing times. The vastly improved data collection provided by automated manufacturing means reducing the frequency of costly inventory checks while increasing accuracy.
The bottom line: the hurdles presented by robotics and automation for manufacturing are well worth navigating.
