2021 Marcum National Manufacturing Survey

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THE 2021 MARCUM NATIONAL MANUFACTURING SURVEY

BUSINESS STRATEGIES

TOP PRIORITIES Finding Paths to Growth

AUTOMATION Automation Remains a High Priority The pandemic forced many companies to do more with less, and one way to accomplish that was by relying more on automation. Nearly half of respondents — 47% — cited automation as a tool for driving efficiency and reducing costs. Meanwhile, 17% said automation helped fill gaps and increase capacity, and another 17% said it provided a competitive advantage. Just 14% of respondents said automation was not a major factor in their business. Half of the respondents had launched a new automation or technology project in the prior year, which is not surprising given the many competitive pressures. As technologies improve, we anticipate a growing need to embrace automation and use the most up-to-date software, processes, and equipment to automate as much as possible. This need is even more acute in the tight labor market.

Labor is a big concern, and this spilled over into overall strategies. Among strategic priorities, 72% listed finding and retaining skilled labor. Cutting costs was the next highest- ranked answer, chosen by 58% of respondents. To get there, 50% of respondents say they plan to increase the use of technology, and a nearly equivalent 47% plan to increase investment in technology. Expanding by entering new markets was a priority for 44% of respondents, while 22% are looking to diversify their supply chains. Finally, 19% are exploring M&A opportunities.

100%

Q17 What is your strategy for the adoption of automation?

90%

80%

We use automation to drive greater efficiencies and reduce costs 47.22% (17) We use automation to fill gaps or increase capacity 16.67% (6)

70%

60%

50%

We use automation to create competitive advantage 16.67% (6)

40%

We have very little automation/ not applicable 13.89% (5)

30%

20%

Other 5.56% (2)

10%

0%