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STAMFORD, Conn., May 11, 2021

Gartner Survey Shows 57% of Manufacturing Leaders Feel Their Organization Lacks Skilled Workers to Support Smart Manufacturing Digitization Plans

Long-Term Strategy Necessary to Develop the Connected Factory Worker

Manufacturers around the world are under pressure to bring their factory workforce into the 21st century, yet 57% of manufacturing leaders say that their organization lacks skilled workers to support digitization plans, according to a survey by Gartner, Inc.

The 2020 Gartner Smart Manufacturing Strategy and Implementation Trends Survey was conducted online between October and December 2020. In total, 439 respondents were interviewed across North America, Western Europe, and APAC.

“Our survey revealed that manufacturers are currently going through a difficult phase in their digitization journey toward smart manufacturing,” said Simon Jacobson, vice president analyst, with the Gartner Supply Chain practice. “They accept that changing from a break-fix mentality and culture to a data-driven workforce is a must. However, intuition, efficiency and engagement cannot be sacrificed. New workers might be tech-savvy but lack access to best practices and know-how — and tenured workers might have the knowledge, but not the digital skills.  A truly connected factory worker in a smart manufacturing environment needs both.”

Connected factory workers leverage various digital tools and data management techniques to improve and integrate their interactions with both physical and virtual surroundings while improving decision accuracy, proliferating knowledge and lessening variability.

Change Management is the Biggest Challenge

Organizational complexity, integration and process reengineering are the most prevalent challenges for executing smart manufacturing initiatives. Combined, these challenges reflect the largest change management obstacles.

“It’s interesting to see that leadership commitment is frequently cited as not being a challenge, Mr. Jacobson said. “Across all respondents, 83% agree that their leadership understands and accepts the need to invest in smart manufacturing. However, it does not reflect whether or not the majority of leaders understand the magnitude of change in front of them – regarding technology, as well as talent.”

Smart Manufacturing Needs Technology and People

Companies are recognizing the value and opportunity for smart manufacturing. However, just introducing new technologies is not enough. The factory workers must evolve alongside the technology and be on board for the changes to come.

“The most immediate action is for organizations to realize that this is more than digitization. It requires synchronizing activities for capability building, capability enablement and empowering people," Mr. Jacobson said. “Taking a ‘how to improve a day in the life’ approach will increase engagement, continuous learning and ultimately foster a pull-based approach that will attract tenured workers. They are the best points of contact to identify the best starting points for automation and the required data and digital tools for better decision-making.”

In the long term, it is important to establish a data-driven culture in manufacturing operations that is rooted in governance and training - without stifling employee creativity and ingenuity.

“It’s great when workers use digital tools to build their own experiences, and in turn improve productivity. It’s the manufacturing leaders’ job to make sure to minimize the risk of shadow IT and ensure that digital knowledge is shared among factory workers,” Mr. Jacobson concluded.

Gartner clients can read more in “Innovation Insight for the Connected Worker” and “Make Smart Manufacturing Work by Knowing These Benefits and Challenges”. Get to know five best practices for manufacturing operations leaders in the free Gartner guidebook “Factory Innovation Post-COVID-19”

About Gartner Supply Chain Symposium/Xpo

Gartner Supply Chain Symposium/Xpo is the most important gathering of CSCOs and supply chain executives. Supply chain leaders will discover the must-have insights, strategies and frameworks to build the sustainable, societal and profitable supply chains required for a dynamic world.

Upcoming dates for the Gartner Supply Chain Symposium/Xpo include:

September 13-15: London, U.K.

October 25-27: Orlando, FL.

About the Gartner Supply Chain Practice

The Gartner Supply Chain Practice brings together the most relevant analysis, peer-based best practices, metrics and data across Gartner and offers supply chain leaders a platform to make the choices that will drive their business forward. Additional information is available at https://www.gartner.com/en/supply-chain. Follow news and update from the Gartner Supply Chain Practice on Twitter and LinkedIn using #GartnerSC.

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About Gartner

Gartner, Inc. (NYSE: IT) is the world’s leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities today and build the successful organizations of tomorrow.

Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We are a trusted advisor and an objective resource for more than 14,000 enterprises in more than 100 countries — across all major functions, in every industry and enterprise size.

To learn more about how we help decision makers fuel the future of business, visit gartner.com.