A recent study by ABI Research reveals that 76% of discrete and process manufacturers are increasingly adopting cloud platforms to enhance real-time collaboration and improve supply chain efficiency. This finding comes from the 2024 Manufacturers’ Technology Adoption & Attitudes Survey, which surveyed 461 manufacturing decision-makers across the United States, Malaysia, and Germany. The results indicate a strong belief among respondents that cloud solutions are essential for fostering collaboration with suppliers, distributors, and partners.
“Manufacturers are leveraging cloud platforms, especially hybrid cloud solutions, to help increase production output and efficiency,” says Yih-Khai Wong, principal analyst with ABI Research.
"Manufacturers are leveraging cloud-based supply chain applications to track inventory, shipments, and production status, to improve supply chain visibility and transparency. However, some fundamental challenges remain, such as the integration of legacy infrastructure and data security concerns, that continue to hinder the widespread adoption of cloud solutions in the manufacturing industry." Yih-Khai Wong
Key Insights from the Survey
- Cloud utilization: The survey highlights that manufacturers are deploying cloud-based solutions primarily for greater data accessibility and to streamline supply chain operations. Other significant applications include remote monitoring of production processes and efficient management and analysis of production data.
- Challenges in adoption: Despite the positive outlook, challenges remain. Yih-Khai Wong, Principal Analyst at ABI Research, notes that issues such as integrating legacy infrastructure and addressing data security concerns continue to impede the broader adoption of cloud solutions in the manufacturing sector.
- Digital transformation: The push for digital transformation is being accelerated by the increasing demand for Artificial Intelligence (AI) and Machine Learning (ML) solutions, along with the rise of smart IoT devices. This trend is leading to a rapid increase in data generation, both on-premises and in public cloud environments.
- Need for unified data: Many manufacturers operate in heterogeneous technology environments, which complicates real-time collaboration due to varying technology standards. The report suggests that adopting a cloud-based enterprise data fabric architecture can help break down data silos by unifying and integrating data from diverse sources.
- Flexibility and scalability: Wong emphasizes that cloud platforms offer the flexibility and scalability necessary for manufacturers to adjust their operations based on production and business needs. This adaptability is crucial for fostering collaboration and enhancing the efficiency of remote monitoring and data analysis, ultimately driving production innovation.
These findings underscore the critical role of cloud technology in modern manufacturing, highlighting both the opportunities and challenges that lie ahead as the industry continues to evolve.
