IT spending in discrete manufacturing

China’s recent advances in the discrete manufacturing markets are causing North American manufacturers to increase investment in IT, according to AMR Research.

10/14/2004


China’s recent advances in the discrete manufacturing markets are causing North American manufacturers to increase investment in IT, according to AMR Research . "Sales growth must come from emerging geographic markets and higher levels of product customization geared to specific market segments," says AMR in its report, General Discrete Industry Outlook: Lifecycle Value Strategies Must Drive IT Investment. The survey states that the most important driver for IT investment in discrete industries is the ability to deal with new competition (35% of survey respondents cite this category). Customer-driven issues are next at 26%, which includes the need to increase market share.


Source: AMR Research, 2004

The report goes on to say that industry consolidation and productivity gains create competitive pressure to eliminate waste. IT investment must align with discrete manufacturing initiatives surrounding issues of global competition by reducing application portfolios to improve data for decision support, increasing connectivity to broaden collaboration, and enhancing performance management to support corrective action.

Other data in the survey include:

  • Average IT spending in 2004 remained flat at 2.4% of revenue, but overall IT budgets will increase 5.7% in 2005. Hardware and networking show the most aggressive increases, but all budget categories show growth.

  • Enterprise performance management (EPM) is a high priority among discrete manufacturers, as better utilization of data received the most response. Product development, supply chain, and sales channel management also scored high.

  • Desktop software shows the highest upgrade activity and the second highest 2005 budget increase at 4.2%, right behind customer management at 4.9%.

  • Discrete manufacturers are only moderately outsourcing, but 54% plan to increase the amount of IT work that is outsourced in 2005. However, only small amounts of the outsourcing budget will move offshore.

—David Greenfield, editorial director, Control Engineering, dgreenfield@reedbusiness.com





No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Big Data and IIoT value; Monitoring Big Data; Robotics safety standards and programming; Learning about PID
Motor specification guidelines; Understanding multivariable control; Improving a safety instrumented system; 2017 Engineers' Choice Award Winners
Selecting the best controller from several viewpoints; System integrator advice for the IIoT; TSN and real-time Ethernet; Questions to ask when selecting a VFD; Action items for an aging PLC/DCS
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.
Motion control advances and solutions can help with machine control, automated control on assembly lines, integration of robotics and automation, and machine safety.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Big Data and bigger solutions; Tablet technologies; SCADA developments
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
click me