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Manufacturer Tech Investment Trends: Report

Liz Dominguez
Data
The research reflects sentiment from cross-industry manufacturers, logistics warehouses, and retail distribution centers.

Ongoing supply chain disruptions and labor challenges are prompting companies to revisit operational strategies by adopting new technologies that drive efficiency. 

New insights from Incisiv, Verizon, and Ericsson show that companies are still value-conscious, but technology investment continues to be a priority. The research reflects sentiment from cross-industry manufacturers, logistics warehouses, and retail distribution centers. 

The 2024 State of Smart Distribution Study found that most (78%) companies rank managing operational costs as a top investment driver. Also, 67% are looking to cut back on labor-intensive operations like order fulfillment and 66% reported dissatisfaction with how shipping and material handling is currently approached. 

The technologies in demand:

  • Mobile devices 81% of companies have or plan to deploy them by 2026 to improve productivity
  • RFID or IoT inventory tracking — 48% plan to or are currently using
  • Robotics — 45% have or plan to use this for picking and packing
  • Camera vision — 37% plan to use for quality control, packing, and returns

Artificial intelligence remains in focus, as well, with 84% reporting it will be a necessity to maintain a competitive edge. However, only 10% said they have a common understanding of AI across the enterprise. 

More data: Learn where generative AI investors are finding ROI.

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Overcoming Challenges

Of course, for many enterprises, implementing new, more advanced technologies means upgrading their IT infrastructure. Sixty-five percent of companies said their current network can’t support their needs for the next two years, and 61% are not satisfied with the reliability of their in-facility network or connectivity.

Aside from supply chain disruptions, workforce challenges continue to plague companies. Eighty-six percent reported labor shortages and issues within workforce management. Others reported employee turnover (70%), competitive compensation (75%), and needing to recruit skilled workers (85%) as key challenges. 

"These results show how distribution operations have shifted toward increasing productivity to satisfy online shoppers' evolving needs," said Gaurav Pant, chief insights officer, Incisiv. "Companies that empower their people with proven technologies and invest in infrastructure upgrades will gain a competitive advantage."

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