A new survey from Eide Bailly and Supply Chain Dive’s studioID reveals that 93% of U.S. middle-market manufacturers and distributors are optimistic about their organizations’ growth, and 95% of them are using technology and automation to help propel that growth.

The survey paints a picture of a very resilient domestic manufacturing landscape where organizations feel prepared to address emerging challenges, including rising business costs, supplier issues, limited supply chain transparency, transportation/logistics disruptions, and talent acquisition and retention. 

​​Other key findings include:

• Organizations are managing key challenges by updating existing technologies, embracing more sustainable manufacturing processes, optimizing their supply chain networks, adding new products and product lines, and targeting niche markets. 
• The top trends among manufacturers include shared challenges in supply chains, logistics and transportation, technology enhancements, more competition for talent, and a greater focus on cybersecurity and data privacy. 
• Technology and automation will be critical to business growth. The vast majority of respondents plan to invest in technology and automation for their operations over the next three years. Most of that investment will be allocated to core business systems, advanced analytics, workforce planning solutions, and cybersecurity solutions.
• Manufacturing organizations are prioritizing data rationalization to fully leverage artificial intelligence (AI) capabilities. Most companies are either experimenting with AI or have plans to do so. Almost a quarter of manufacturers use AI and plan to increase usage, while far fewer have already integrated AI into much of their operations. The majority of manufacturers say their companies’ current systems are completely or somewhat AI-ready, while nearly all respondents are confident that their technology is up to date.     
• Manufacturers are investing in talent acquisition and retention. This is driven by a number of trends, including widening skills gaps, greater competition for skilled workers, an aging workforce, generational differences about what “work” looks like, and increased adoption of automation and AI. According to the survey, the vast majority say their companies are looking to fill skilled labor roles, and nearly all agree that their companies are currently upskilling or reskilling employees in the latest technologies.

“Manufacturers clearly realize that if they’re not investing in technology, they’re falling behind,” says Dave Glennon, partner and manufacturing industry leader at Eide Bailly. “They also know that equipping their team with the necessary digital solutions can make them more productive, efficient, and engaged.”

Manufacturers expect production volume to rise over the next 12 months, with 85% of respondents expecting increases and 15% predicting that volumes will stay the same. This paints a picture of a very optimistic, hopeful U.S. manufacturing sector prepared to face evolving challenges and embrace new growth. 

Click here to download the full report and learn more about the current challenges middle-market manufacturers face, how they plan to pursue business growth, their future technology investments, and the workforce trends impacting their operations.