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Adobe Stock BDO study shows manufacturers increased technology during the pandemic and looked to nearby suppliers to stabilize supply chains.
A recent BDO survey of 100 manufacturing CFOs shows that the pandemic accelerated the adoption of Industry 4.0. Manufacturers put the focus on innovating and stabilizing the supply chain. “The pandemic has been a catalyst for technological change,” Eskander Yavar, the leader of BDO’s Manufacturing Practice, told Design News. “It was not started by the pandemic, but the pandemic changed the behavior of companies.” The full survey is available here
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Highlights from the study reveal significant changes in manufacturing over the past year.
Blows from the Pandemic Forced Change
The pandemic came as a shock to manufacturers. They weren’t prepared for the sharp increase in demand. “In March and April of last year, there was an increase in demand for goods,” said Yavar. “Much of the demand shifted to the individual and the individual s home. Yet the capacity in the workforce wasn’t there for manufacturers to hire, so there was a gap between the demand for goods and the supply.”
As the pandemic deepened, some companies prospered while others languished. “Those companies that were interrupted in their business are still trying to catch up and they can’t. People are still waiting for some items,” said Yavar. “That challenge created a gap that is continuing. That’s a big reason why we’re seeing a focus on automation. 95% of manufacturers were affected in some way. The result is an altered focus for 2021. Manufacturers plan to reduce input cost through automation.”
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