2016 a Bull Market for Manufacturing ERP: New Research
More manufacturers are in the market for enterprise resource
planning (ERP) systems in 2016 to improve customer service and response times,
according to a new survey from the professional services firm Sikich LLP.
Three figures from the Sikich 2016 Manufacturing Report stand out, indicating a bull market for manufacturing ERP vendors:
- 29% of manufacturers report being more optimistic for the U.S. economy compared to the last 12 months
- Another 31% of manufacturers of manufacturers believe the world economy will grow over the next 12 months
- 40% of manufacturers expect their industry will expand over the next 12 months
Positive figures in each of those areas - national and global economies, and industry expansion - are all indicators of expanding buy-side budgets.
But what will they require of ERP?
ERP Drivers: Growth through Improved Customer Experience, Reduced Costs
Some 44% of manufacturers see organic growth in the existing domestic market will be their main opportunity for growth. Another 14% sees merger and acquisition (M&A) as an opportunity for growth, despite a recent boom with M&A activity.
While manufacturers plan for growth, they are doubly sensitive to hindrances to growth, chief among them, cost pressures, with:
- 44% of manufacturers saying cutting operational costs is a top priority
- 47% expecting an increase in material costs of up to 5%
- Fully 85% expecting an increase in labor costs from 1 to 4%
-
49% expecting average ...
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