1、The challenges and opportunities of new technology for the automotive industryState of Smart Manufacturing Report:Automotive EditionEIGHTH ANNUALThe 8th annual edition of the State of Smart Manufacturing report surveys the broadest audience yet,probing deeply into global manufacturing.This report ha

2、s expanded in scope from previous years,with quadruple the number of respondents,across 13 of the top manufacturing countries;25%of whom work for firms with over$1B in revenue.Participants,who hold positions from management up to the C-suite,responded to questions that reveal the current state of te

3、chnology in manufacturing,the biggest challenges,and the future of the industry.This report from Rockwell Automation,in association with Sapio Research,includes a technology adoption plan alongside the research findings to help you turn insights into action.WHAT IS SMART MANUFACTURING?Smart Manufact

4、uring is the intelligent,real-time orchestration and optimization of business,physical,and digital processes within factories and across the entire value chain.Resources and processes are automated,integrated,monitored,and continuously evaluated based on all available information as close to real ti

5、me as possible.This report is based on the responses of 197 managers and executives from automotive manufacturers,automotive supply manufacturers,and electric vehicle manufacturers in 13 countries.MESA International INTRODUCTION 8th Annual State of Smart Manufacturing Report:Automotive Edition02AN E

6、VOLVING INDUSTRY IN PURSUIT OF QUALITYINTRODUCTION 8th Annual State of Smart Manufacturing Report:Automotive EditionFew sectors have had to evolve as much as the automotive industry over the past few years.Between shifts in consumer demand,supply chain disruption,microchip shortages,and the continui

7、ng fallout of the COVID-19 pandemic,this evolution has hardly been straightforward.Challenges to Profitable GrowthManufacturers in the automotive sector identified the need to balance quality with profitable growth as their number one internal challenge in both 2022 and 2023.43%of automotive manufac

8、turing leaders believe this was their biggest internal obstacle in 2022 and 40%expect this to continue in 2023.Additionally,respondents highlighted two critical workforce-related challenges.Onboarding new employees(39%)and worker retention(38%)ranked in the top five concerns around growth in 2023,in

9、dicating that workforce is critical to the industrys growth.Still,the biggest obstacles remain external.In 2022,the impact of the pandemic(49%)and raw material shortages(such as microchips)(45%)were cited as the top external obstacles to growth.Looking forward to 2023,more automotive manufacturers(5

10、4%)are concerned about raw material shortages than last year,while inflation(47%)remains a key issue.Q.What do you see as the biggest internal/external obstacle(s)to your organizations growth next year(calendar year 2023)?Select topBase:19703INTERNALDeploying and integrating new technologyWorker ret

11、ention/knowledge retentionOrganizational information/data silosOnboarding new employeesBalancing quality and growthEXTERNALShortage of skilled workersSupply chain disruptionImpact of COVID-19 pandemicInflationRaw material/microchip shortage/pricesIndustry Obstacles and OutlookINTRODUCTION 8th Annual

12、 State of Smart Manufacturing Report:Automotive EditionQ.Which of the following do you feel is creating the need to accelerate digital transformation in your organization?Select top 5Base:19704“Minimizing costs and Improving quality are the number one drivers for the acceleration of digital transfor

13、mation.”When asked how they intend to mitigate these risks,the number one response from leaders in the automotive industry was adopting new technology.59%are mitigating internal risks by adopting technology with 50%doing the same for external risks,which both ranked high among all industries.Similar

14、ly,when asked how they intend to drive positive business outcomes,the number one response was by“increasing automation.”31%of automotive manufacturers either plan to or have already invested in AI and machine learning technologies,which is expected to continue growing as more use cases develop along

15、 with ease of use applications.For all automotive manufacturers,its clear that the#1 goal remains focused on consistency of quality in the face of workforce-related disruptions,while maintaining profitable growth.TECHNOLOGYS ESSENTIAL ROLEImproving qualityMinimize costs Overall equipment effectivene

16、ss(OEE)Boosting production Adapting to new regulations and standardsKeeping up with competitorsMeeting the needs of the rapidly changing consumer behavior Ensuring sustainable practicesReducing downtimeAgility/adaptability/keeping up with evolving marketsSupply chain disruption40%37%36%36%35%35%32%2

17、9%40%42%43%Catalysts for Digital Transformation Planned Investments to Mitigate DisruptionThe automotive industry is no stranger to technology.On average,automotive manufacturers invest 23%of their operating budget on technology,which aligns with the average of all industries taking part in this sur

18、vey.This investment includes cloud technologies(32%)and cybersecurity(30%),along with 41%investing in automation on the plant floor.GENERAL ATTITUDES TOWARD TECHNOLOGY SECTION 2:GENERAL ATTITUDES TOWARD TECHNOLOGY 8th Annual State of Smart Manufacturing Report:Automotive Edition05Base:197Q.Which of

19、the following areas does your organization plan to invest in as a result of disruption over the last 12 months(COVID-19,major weather event,supply chain interruptions,society,etc?)Select top 534%32%38%Cloud technology36%Automated process enforcementSupply chain planning30%Cybersecurity41%Plant floor

20、 automationAutomation of business processes23%of operating budget is spent on technology8th Annual State of Smart Manufacturing Report:Automotive EditionQ.Which of these technologies that your company has invested in had the biggest ROI over the last 12 months?Select top 5*Options masked through tho

21、se selected already invested in Q11.Base:192SECTION 2:GENERAL ATTITUDES TOWARD TECHNOLOGY 0664%of businesses are using software to automate processes and 54%of leaders are increasing automation to address labor shortages.Despite this increased use of technology,85%of automotive manufacturers expect

22、to maintain or even increase their current workforce.42%expect to repurpose their existing workforce and 27%believe theyll actually hire more workers as a result of technology adoption,indicating that technology can both address current issues and catalyze growth.Process automation ranked as the hig

23、hest ROI investment among automotive manufacturers.5GWearablesGenerative DesignDigital twins(i.e.,digital replicas synchronized with physical assets)BlockchainCobots(Collaborative Robots)Facial RecognitionAutomated mobile robots and automated guided vehiclesProcess AutomationMachine IntegrationMachi

24、ne Learning/Artificial IntelligenceCloud/SaasIndustrial Internet of Things(IIoT)/Internet of Things(IoT)RPA(Robotic Process Automation)Voice Recognition/Natural Language Processing(NLP)Technology 3D printers/additive manufacturingSensor/RFID/Geo TaggingAugmented Reality,Mixed Reality,Virtual Reality

25、Cameras/Scanner/Drones22%21%21%20%17%17%16%16%15%15%13%11%11%11%10%9%25%25%31%85%of automotive manufacturers expect to maintain or grow employment as a result of technology adoptionTHE IMPACT OF PROCESS AUTOMATIONTechnologies with the Biggest ROIADOPTING SMART MANUFACTURING SECTION 3:ADOPTING SMART

26、MANUFACTURING8th Annual State of Smart Manufacturing Report:Automotive Edition07Q.Which of the following smart manufacturing initiatives/systems has your company adopted or plans to adopt?Select one per rowBase:197The automotive industry is well aware of the potential of smart manufacturing and 97%o

27、f automotive manufacturers believe smart manufacturing is very important to the future success of their business.Nearly half of respondents(49%)are actively using smart manufacturing right now.Of those who have not yet invested in smart manufacturing,over half(51%)plan to adopt within the next 12 mo

28、nths.Specifically,automotive manufacturers are interested in smart manufacturing initiatives for production monitoring(60%),quality management systems(QMS)(52%)and manufacturing execution systems(MES)(49%).This data may indicate that automotive manufacturers see an opportunity to leverage incrementa

29、l,lower initial cost and less resource-intensive smart manufacturing solutions like production monitoring that provide strong value and quick time to payback and ROI.They can then reinvest that ROI in their next adoption step,which may be a QMS or MES,allowing them to scale in a cost-and resource-co

30、nscious way.Advanced AnalyticsEnterprise Asset Management (EAM)32%Asset Performance Management (APM)36%Computerized Maintenance Management System(CMMS)37%Enterprise Resource Planning(ERP)42%Industrial IoT (IIoT)44%Supply Chain Planning (SCP)44%Manufacturing Execution System(MES)49%Quality Management

31、 System (QMS)52%Production Monitoring60%31%SECTION 3:ADOPTING SMART MANUFACTURING8th Annual State of Smart Manufacturing Report:Automotive Edition08When asked why businesses are adopting smart manufacturing,the top reason cited by leaders is to reduce cost(37%)with improving quality a close second(3

32、2%).In practice,35%of these businesses report that smart manufacturing has helped mitigate issues with deploying and integrating new technologies.Additionally,29%believe that smart manufacturing has helped them to keep pace with market transformations and to mitigate the lingering impact of the pand

33、emic.Smart manufacturing initiatives involving enterprise resource planning(ERP),manufacturing execution systems(MES),Industrial IoT(IIoT),and quality management systems(QMS)ranked as the top solutions for ROI.Q.Which of these obstacles have your current smart manufacturing initiatives helped to mit

34、igate?Select all that apply*Only asked if Already adopted or Plan to adopt was selected at Q21.Base:196THE ROI OF SMART MANUFACTURINGDeploying and integrating new technology35%Keeping pace with market transformations29%Impact of COVID-19 pandemic29%Product quality/Balancing quality and growth28%Infl

35、ation26%Shortage of skilled workers26%Supply chain disruption24%Cybersecurity risks(e.g.,ransomware,phishing)24%Where has smart manufacturing helped the most?SECTION 3:ADOPTING SMART MANUFACTURING8th Annual State of Smart Manufacturing Report:Automotive Edition09Manufacturers in the automotive indus

36、try are certainly adopting new technologies rapidly,but thats not to say its happening without friction.48%of businesses report a lack of skills to manage smart manufacturing initiatives as the biggest barrier to adoption,while 46%report employee resistance to new technologies as the biggest barrier

37、.Change management is therefore a key component of successful technology adoption,in particular when technology adoption adds new growth opportunities for employees.Adoption also remains a challenge as shown by the 26%of automotive manufacturers that cite technology paralysis an inability to decide

38、between solutions as one of their main obstacles to overcome.In spite of these barriers,businesses in the automotive industry are increasingly relying on technology to overcome their biggest internal and external obstacles.26%of automotive manufacturers hampered by technology paralysisBARRIERS TO AD

39、OPTIONQ.What are the barriers to adopting smart manufacturing?Select top 5*Only asked to those using or actively evaluating smart manufacturing solutionsBase:168Employee resistance to technology adoption and changeLack of skill set to manage smart manufacturing implementationLack of skill set to tak

40、e advantage of smart manufacturing technology Lack of knowledge on smart manufacturing technology and benefits Difficult to replace/upgrade legacy systems Cost/ExpenseMisalignment between business objectives and smart manufacturing objectives Lack of clear definition of smart manufacturing value/ROI

41、Leaderships resistance to changeNo sustained leadership support39%38%36%35%34%33%31%43%46%48%Barriers to Smart Manufacturing Adoption SUSTAINABILITY AND ESG AS A MEANS OF DIFFERENTIATIONCONCLUSION8th Annual State of Smart Manufacturing Report:Automotive Edition10Q.Which of the following drives or mo

42、tivates your organization to pursue ESG/sustainability?Select all that apply*Only asked to those with some form of ESG program already in placeBase:192Even amidst external challenges like inflation,supply chain issues,and labor shortages,the automotive industry remains committed to improving its ove

43、rall impact on the planet.97%of auto manufacturers and suppliers report having sustainability and ESG initiatives in place.49%pursue sustainability and ESG initiatives as a competitive differentiator.Never before have we seen such a large percentage of automotive manufacturers calling out sustainabi

44、lity and ESG as a competitive differentiator.New and potential regulations along with consumer demand are especially influential for automotive manufacturers-so much so that they view their policies and the actions around those policies as a way to differentiate from the competition.Improving effici

45、encies(41%)and environmental concerns(41%)ranked 2nd as motivations for ESG and sustainability programs.Manufacturers are paying closer attention to the value they are delivering to both the business and society.33%Fosters a collaborative environmentImprove efficiencies 49%A competitive differentiat

46、or(to win business from customers who have supplier requirements)41%To address potential environmental issues before they arise41%To build our presence in the community35%31%Its good for the bottom line To address social inequalities that may suppress talent in the workforce30%A desire to do goodPre

47、ssure from investors22%21%CONCLUSION8th Annual State of Smart Manufacturing Report:Automotive Edition11Leaders in the automotive industry face a complex collection of external economic challenges as well as a critical moment of change management internally.44%are relying on automation to help their

48、business transform over the next five years with 41%also relying on improving their use of data analytics.This will remain a challenge with 35%of data in the auto industry still going unused.Looking ahead,the tangible return on investment of existing smart manufacturing initiatives and the industrys

49、 motivation to leverage it for success will likely continue the digital transformation journey for many as automotive leaders look to increase profitable growth in 2023 and beyond.A global view of todays challenges and tomorrows opportunities to harness technology for greater resiliency,agility,and

50、sustainabilityState of Smart Manufacturing Report EIGHTH ANNUALTo see how the wider manufacturing industry is using technology to move forward,read the complete State of Smart Manufacturing Report.LOOKING FORWARDQ.How do you plan to drive positive business outcomes over the next five years?*Only ask

51、ed to those using or actively evaluating smart manufacturing solutionsBase:197ESG/sustainability program/policies39%Increased use of Artificial Intelligence/Machine Learning38%Leveraging new/emerging market opportunities35%Adopting smart manufacturing software34%Increased training and employee progr

52、ams32%Adopting cloud technology32%Adopting supply chain planning software31%Automated process enforcement40%Better use of data analytics41%Increased automation44%Driving Improvements Over the Next 5 YearsDEMOGRAPHICS AND FIRMOGRAPHICSDEMOGRAPHICS AND FIRMOGRAPHICS8th Annual State of Smart Manufactur

53、ing Report:Automotive Edition12Q.What is your annual business revenue?(Aggregated Revenue)Q.What industry do you work in?Select oneQ.In which country do you currently work?Select oneBase:197Base:197Base:197Annual Revenue(US Dollars)29%$10 million-$149 million23%$150 million-$499 million14%$500 milli

54、on-$999 million19%$1 billion-$10 billion14%$10 billion+Industry Sector100%Auto,Auto Tier Supplies,EVRegionAPAC52%31%17%EuropeNorth AmericaAllen-Bradley and expanding human possibility are trademarks of Rockwell Automation,Inc.Trademarks not belonging to Rockwell Automation are property of their respective companies.Publication INFO-BR028A-EN-P March 2023Copyright 2023 Rockwell Automation,Inc.All Rights Reserved.Printed in USA.Connect with us.