Skip to main content

2016 a Bull Market for Manufacturing ERP: New Research

by Matt Bolch
Contributing Writer,

Courtesy of Sikich LLPMore 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 ...

    FREE Membership Required to View Full Content:

    Joining gives you free, unlimited access to news, analysis, white papers, case studies, product brochures, and more. You can also receive periodic email newsletters with the latest relevant articles and content updates.
    Learn more about us here

About Matt Bolch

Matt Bolch is co-founder of content provider Landscape Creative. He is a long-time journalist specializing in technology and health IT topics. He can be reached at

More about Matt Bolch