4 Reasons Manufacturers Are Investing in Technology

With manufacturing on the rise in North America, and investment up, many companies are turning to new software and computer systems.

By Anthony Cuilwik, CEO of CIMx Software

In a recent Wall Street Journal article on recent trends in small business spending, the author wrote, “There is a point in every recovery when small businesses move from slashing costs to spending more on new plants and industrial machinery, trucks, computers, office equipment and furniture.”  According to the authors, we are just entering that period, when business owners start believing that purchases and expansions will be rewarded with new business and expanded profits.

We’re seeing evidence of this investment – 51% of all companies surveyed plan to increase capital spending in the next 12 months.   In another survey, 55% of the companies reported capital investment in the previous six months.  It’s exciting news, and another sign the economy has improved.

But, I couldn’t help but wonder what those companies were investing in…

Benefits of Software Technology to Manufacturing

The article mentioned new plants, industrial machinery, trucks, and furniture and office equipment.  These are all, potentially, good manufacturing investments, but none have the immediate impact a software investment such as paperless manufacturing has.  Consider this:

1. Paperless manufacturing supports improved production.

Adding another machine or even another plant won’t deliver maximum benefit if you haven’t optimized your current production.  Paperless manufacturing improves production by removing errors and offering increased shop floor visibility and control, adding to the benefit of other manufacturing investments.

2. Software provides a foundation for future improvements and growth.

Look to the future when investing.  As new processes, new technology, and new tools hit the market, paperless manufacturing provides a solid foundation for a digital factory that integrates new products into your workflow.  When change comes, will your shop floor be ready?

3. Paperless manufacturing provides a rapid ROI that is easy to track.

Most companies identify an ROI before making a capital investment.  With paperless manufacturing you can directly benefit a number of areas in the plant, helping to increase the ROI.  A software system   offers not only a solution to production challenges, but an ROI that can be invested in other areas.

4. The right software solution accumulates value.

Unlike an investment in a truck or machine, behavior-based, rather than template-based, paperless manufacturing software will become more valuable over time, rather than depreciating.  To further add value to your investment, look at software that offers free upgrades and easy-configuration.

Putting It All Together

The truth is, many manufacturing companies are investing in software and technology, and for more reasons than the ones listed above.  Technology, including paperless manufacturing, has never been as affordable as it is right now.  Customers are demanding service and shorter production runs that cannot be supported by an inefficient paper-based system.  Regulations are driving other companies to seek paperless manufacturing solutions.

As demand for manufacturing continues to increase and the economy picks up even more, those companies that have invested in a solid Information Technology foundation such as paperless manufacturing will find themselves with an advantage over competitors still struggling with error-prone, costly and inefficient paper-based processes.

Want to learn more, or discover how quickly and easily you can benefit from paperless manufacturing?  We’re happy to work with you to identify the areas on your shop floor and production that will benefit the most with a new system, and then select the system that will deliver the greatest benefit (even if it isn’t ours).  Using a phased implementation, we can generate a rapid ROI that will help pay for future phases, ensuring maximum benefit for you.  Give us a call and leave a message.  We’re happy to help.