Transformation projects are very popular

This statement from IFS is based on a survey conducted among 815 international managers from the manufacturing industry. It shows that although all respondents consider the use of technology to be vital for the survival of their company, only 10% see themselves as digital pioneers. 65% of respondents, on the other hand, classified themselves as laggards in terms of digitalization, lagging dangerously behind, stuck in the early stages of digital transformation and without a concrete plan for the next steps.

Digital transformation is a necessity, not an option.

The IFS study also found that 82% of manufacturers stated that their company will not survive for more than one to three years if it does not become more involved in the technology sector. In contrast, digital leaders are confident that they will survive future challenges. More than a quarter of them (28%) believe they will be able to survive for up to five years without new investment.

Oversupply prevents investments

According to the IFS study, the large number of different options and offers often prevents companies from making a decision. When asked about technology priorities, more than 80% of respondents named every option as important. A lack of orientation that prevents decisive action. Manufacturers' reluctance to make decisions is further exacerbated by the fact that each management level sets different priorities.

Almost all C-level respondents (94%) believe that cloud computing is the most important technology for digital transformation, while at divisional and departmental manager level, the majority see IoT (Internet of Things) as the most important technology (81%). Operational employees, on the other hand, see digital twins (85%) and artificial intelligence (84%) as a priority. This indecision widens the gap between laggards and digital leaders - who invest 45% of their IT budget in transformation projects. A fifth of respondents said that change management (22%) and IT complexity (21%) were the biggest barriers. If manufacturers do not succeed in overcoming these, they risk severe economic losses.

There is also a need for action in the area of ESG (Environmental, Social and Governance): While only 39% of respondents are actively developing ESG initiatives, most manufacturers (71%) lack a credible strategy. At the same time, 28% see climate change as the biggest challenge.

Nevertheless, reason for optimism

Although the implementation of digital transformation projects poses many challenges, the general mood among manufacturers is positive - and many are already using next-generation tools. In the area of supply chains in particular, almost all companies (98%) are interested in new geographical strategies to strengthen resilience - for example by relocating to closer or more politically stable regions. Digital pioneers rely on advanced technologies such as advanced scenario simulations, while laggards often still rely on isolated risk assessment tools.

Manufacturing companies are also increasingly confident about the opportunities presented by ESG initiatives with regard to their_{carbon footprint}. The focus is shifting from purely compliant measures to activities that bring about far-reaching improvements in throughput times and quality. At the same time, these approaches open up potential for innovative business models such as the circular economy, which could drive a sustainable transformation of the industry.

"The manufacturing industry is at a turning point - although most companies have recognized the urgency of digital transformation, too often indecision still dominates," explains Maggie Slowik, Industry Director for Manufacturing at IFS. "This hesitation harbors risks: The longer manufacturers wait, the further they fall behind. In a volatile market, resilience and digital maturity are not just competitive advantages - they are essential for survival. "