Technologies With the Biggest ROI over the Past 12 Months - 2023

Jan 11

Based on the Manufacturing ISM Report on Business and insights from Rockwell Automation’s 8th Annual State of Smart Manufacturing Report, the manufacturing sector continues to navigate a challenging economic landscape. The economy has seen a third consecutive month of contraction after a brief period of weak expansion, preceded by nine months of contraction, and a 30-month period of expansion before that.

December Data Highlights:

Manufacturing PMI®: The PMI slightly increased to 47.4% from November's 46.7%, signaling ongoing contraction but with a slower rate of decline.
New Orders & Production: While New Orders continued to decrease, Production showed a modest improvement, indicating potential stabilization.
Employment & Prices: The Employment Index saw a slight uptick, while the Prices Index dropped, reflecting lower costs in energy markets.
Supplier Deliveries & Inventories: There were faster deliveries and reduced inventories, suggesting manufacturers are preparing for an anticipated rise in demand.
Exports & Imports: Export levels remained flat, and imports continued to shrink, reflecting ongoing global trade challenges.
Industry Performance: Growth was reported only in Primary Metals, with significant contractions in key sectors like Machinery and Petroleum & Coal Products.

Emerging Trends:

Stabilizing Production: There are signs of stabilization in production and employment, hinting at potential recovery.
Output Adjustments: Manufacturers are effectively managing outputs to align with fluctuating demand, showcasing agility.
Capacity for Growth: The industry demonstrates readiness to ramp up operations in response to future demand.
Sectoral Shifts: Resilience in sectors like Primary Metals contrasts with contractions in others, pointing to shifting industry dynamics.
Economic Indicators: Decreasing supplier lead times and price adjustments foster cautious optimism for the months ahead.

Process Automation: The ROI Leader in Manufacturing Technology

Process Automation stands out as a leading technology in delivering ROI for manufacturers, outpacing other emerging technologies such as cloud/aaS, IoT, machine integration, AI, and 5G. Here’s why:

Proven Track Record: Process Automation has been a staple in manufacturing for decades. Its longevity means it’s a tried, true, and tested technology. Unlike newer technologies that are still being refined and adopted, Process Automation has a solid history of delivering consistent results. Manufacturers know what to expect, which reduces risk and uncertainty.
Lower Costs: Compared to emerging technologies, the costs associated with implementing and maintaining Process Automation are relatively low. The infrastructure required for automation is often already in place, and the technology itself has become more affordable over time. This makes it an accessible option for manufacturers looking to enhance efficiency without making large capital investments.
Immediate Impact: While technologies like AI and IoT promise significant future benefits, they often require time to implement, refine, and integrate fully into existing systems. Process Automation, on the other hand, can deliver immediate improvements in efficiency, consistency, and output. The quicker return on investment is highly attractive in uncertain economic times.
Simplicity and Reliability: Process Automation is fundamentally simpler than technologies like AI or 5G, which require complex integrations and a high level of expertise. Automation systems are typically easier to install, operate, and maintain, which reduces downtime and ensures more predictable performance. This simplicity also means fewer points of failure, leading to greater reliability in production.
Complementary to Other Technologies: Process Automation doesn’t just stand alone—it enhances the effectiveness of other technologies. For example, while AI can optimize processes, the actual execution of these optimizations is often carried out through automated systems. Similarly, IoT devices may provide data, but it’s automation that uses this data to improve production workflows in real-time.