CLEVELAND, Ohio — Manufacturing executives around the world are seeing real effects on productivity and profitability from investing in the Internet of Things (IoT), according to a study by the MPI Group.
The research and advisory firm based in Beachwood, Ohio noted a turnaround from a year ago when executives were surveyed and two-thirds of them had no strategy for implementing the IoT. Now the same proportion consider themselves IoT-competitive.
“There’s been a dramatic jump in awareness of, investment in, and profits from the IoT,” says John R. Brandt, CEO of The MPI Group in a release. “However, many smaller manufacturers are still unsure where to start.”
MPI’s 2017 Internet of Things Study looked at the production of smart devices and the implementation of embedded intelligence within plants, processes, and products of manufacturers around the world. Here are some highlights:
• Implementation is up, with 50% (median) of production processes now using the IoT, and 68% of manufacturers having plans to embed smart devices or intelligence into products.
• 72% report increased productivity, and 69% report increased profitability, from application of the IoT to plants and processes.
• 65% report increased profitability from sales of IoT-enabled products (embedded intelligence).
• 46% see identifying opportunities to implement the IoT as a challenge.
• 34% say not all corporate executives who need the data have access to it (worse numbers for customers and suppliers).
The study, sponsored by BDO and SAS Institute Inc., conducted in November and December 2016 involved 374 manufacturers.