SAN FRANCISCO (GLOBE NEWSWIRE) — The global manufacturing and supply chain ecosystems have been among the hardest hit sectors by the COVID-19 pandemic. Fictiv’s newly released 2020 State of Manufacturing Report reveals industry leaders grappling with fallout from the pandemic while eyeing new opportunities created by the disruption. Key findings include:
- Eighty nine percent (89%) report a direct business impact because of COVID-19 including lower sales, increased costs of materials and production, and canceled or delayed product launches;
- Only 17% gave top marks to their supply chain’s performance over the last year;
- A majority are revisiting their reliance on China and looking to the U.S. as the next key manufacturing center;
- Nearly all (97%) said COVID-19 has created new opportunities, with 87% making digital transformation a high priority; and
- Supply chain resilience is important to 99% of respondents, with 96% working to increase supply chain agility;
“COVID-19 is a clear point of demarcation in the industry, accelerating the transition from traditional supply chains and manufacturing to a digitally-enabled future,” said Fictiv CEO Dave Evans. “This deep dive reveals an opportunity for those industries most profoundly impacted by the physical realities of the virus to iterate faster with finer tolerances and higher quality using digital manufacturing advances. We believe OEMs can rely on digital manufacturing partners to bridge this digital transformation gap and overcome the overwhelmingly complex and costly mandate of necessary digital advancement.”
Conducted with Dimensional Research, the fifth annual manufacturing industry report polled hundreds of senior manufacturing and supply chain decision makers at companies producing medical device, robotics, automotive, aerospace, and consumer electronics products. Key themes from the report found:
COVID-19 Has Negatively Harmed Most Businesses (89%) and Industries
- Sales are down (44%), cost of materials and components have increased (41%), and production times have lengthened (41%);
- Thirty six percent (36%) have had to lay off good employees; and
- Twenty four percent (24%) have been unable to fill customer orders.
Digital and AI Advances are Important, But Funding Still Lags
- Eighty seven percent (87%) have a high priority digital transformation initiative;
- Reducing cost (46%), increasing supply chain visibility (42%), and driving efficiencies (40%) are some of the top goals for these digital efforts;
- Yet, only 14% believe their digital transformation initiative is well funded and 81% face difficulty finding necessary expertise.
Supply Chains Will Look Different, But China Remains an Option
- Most (83%) agree COVID-19 has been an extreme test of their supply chain;
- Eighty four percent (84%) say they will be more cautious about offshoring now than in the past; but
- While many (73%) will minimize reliance on China, 74% will continue to source some parts from the region.
“While many businesses will examine reshoring as part of their future supply chain, China continues to offer important advantages in infrastructure and manufacturing talent – making it a stable part of any supply chain ecosystem,” said Fictiv COO Jean Olivieri. “The opportunity for supply chain executives will be to introduce digital and AI capabilities through partners and investment that can build an agile, resilient supply chain able to flex across geographies and demand in real-time and with complete transparency.”
For a full copy of the 2020 State of Manufacturing Report or to learn more about Fictiv and its digital manufacturing ecosystem, please visit www.fictiv.com/resources/2020-
Fictiv offers manufacturing agility and speed through a portfolio of optimized manufacturing processes for hardware companies of all sizes. Its Digital Manufacturing Ecosystem combines an easy-to-use cloud platform; design, quoting, billing and logistics systems; and an intelligent orchestration engine that manages a network of highly vetted and monitored manufacturing partners that together deliver high-quality mechanical parts at unprecedented speeds. The ecosystem is supported by “boots-on-the-ground” experts to manage programs, inspect quality, and provide DfM guidance along the way. Over the last six years, Fictiv has manufactured more than 10M parts for early-stage companies and large enterprises alike, helping them innovate with agility and increase supply chain predictability. www.fictiv.com