MLC Research Shines a Light on the State of M4.0
Over the course of 2024, five research studies depicted an industry still very much in transition to the digital model of manufacturing.
Ever since its founding in the early 2000s, the Manufacturing Leadership Council has been devoted to using survey research to help take the pulse of digital transformation in manufacturing. Regularly surveying the operational leaders who are leading digital efforts in their companies has yielded insights into digital maturity levels, how advanced technologies are being used, what challenges manufacturers are having in embracing the digital model, and their aspirations for the future.
MLC survey research is usually associated with the Council’s Critical Issues agenda, but with the launch of the Future of Manufacturing Project in 2021, the scope of research widened to include more topics and in-depth white papers.
This pattern continued in 2024, a year in which MLC fielded five major Manufacturing 4.0-related research studies – on Smart Factories; Digital Maturity; Data Mastery, a white paper under the Project; Artificial Intelligence; and Leadership, Culture, Organization, and People.
In aggregate, MLC research for 2024 suggests that manufacturers are at an intermediate stage with M4.0 adoption, with many still working at redesigning their organizational structures, adapting their company cultures, scaling the use of new technologies, and growing leadership skills and behaviors for the digital age.
Here are the key findings of MLC’s research during 2024, as published in the Manufacturing Leadership Journal and in white paper format:
“Smart Factories Are Still a Work in Progress”, February MLJ – This study chartered the stage of M4.0 adoption and found that most respondents are at an intermediate stage in their transformation journeys. The study also found that the most significant roadblocks to implementing a smart factory strategy are organizational structures or cultures that resist change.
“For Manufacturers, Digital Maturity Hasn’t Yet Come of Age”, MLJ April 2024 – A key finding was that a majority of manufacturers either do not have a formal process for measuring their digital maturity or do informal benchmarking. Another important finding was that a majority of manufacturers have a digital maturity target of Manual Execution with Digital Support, with an equal balance of companies on track or behind schedule on this goal.
“Data Mastery: A Key to Industrial Competitiveness”, White Paper, June 2024 – This White Paper, under MLC’s Future of Manufacturing Project, examined data governance and organization, how manufacturing data is being used, the business impact of the data, and future trends. A key finding of the study was that 86% of respondents said that the effective use of manufacturing data in their organizations will be “essential” to their competitiveness in the future.
“Manufacturers See AI as a ‘Game-Changer’ as They Ramp Up Investments”, MLJ August 2024 – No doubt spurred by the interest in generative AI, 78% of manufacturers said they plan to increase spending on AI tools in the next two years. And a majority of respondents, 56%, said they expect AI to change the rules of the industry by 2030, despite issues with data and a lack of AI-related workforce skills.
“Leadership Preparedness Improves, But Gaps Remain”, MLJ October 2024 – Understanding digital roles and skills for the future manufacturing enterprise is only somewhat understood, said 71% of survey respondents. To change that equation, digital manufacturing leaders need to augment traditional leadership qualities with new skills such as fostering a data-driven culture and guiding the workforce through change. M
About the author:
David R. Brousell is the Founder, Vice President and Executive Director, Manufacturing Leadership Council