6TH ANNUAL STATE OF SMART REPORT

Today’s Challenges & Tomorrow’s Opportunities for Manufacturers Participants in a recent global survey of nearly 300 manufacturers*

INTRODUCTION recognized the importance of smart manufacturing for agile decision making, process automation, and greater efficiency. SMART MANUFACTURING: This study from Plex Systems, in collaboration with Hanover Research, explores how manufacturers can use to address today’s The intelligent, real-time orchestration and optimization challenges and take advantage of long-term opportunities. of business, physical, and digital processes within and across the entire value chain. Resources The data reveals a clear need for smart manufacturing technology and processes are automated, integrated, monitored, in order to address current challenges, especially those created or and continuously evaluated based on all available heightened by the COVID-19 pandemic. information as close to real time as possible.

• Most manufacturers are currently using at least some components MESA International of smart manufacturing to achieve their business goals.

• Whether manufacturers build a complete, integrated system or focus on a few key tools or processes, smart manufacturing helps organizations solve business challenges and become more competitive.

*Respondent demographics are shown in the Appendix.

| State of Smart Manufacturing Report 2 ADOPTION OF SMART CURRENT BUSINESS SMART MANUFACTURING MANUFACTURING CHALLENGES CREATE EVEN CAN HELP MAXIMIZE FUTURE TECHNOLOGY IS GREATER NEED FOR SMART GROWTH OPPORTUNITIES. INCREASING. MANUFACTURING.

EXECUTIVE SUMMARY Manufacturers are always looking to invest in Manufacturers face a variety of challenges Leading manufacturers have been quick technology that drives greater efficiency and in today’s global market, including security to adopt innovative in recent visibility, and many are already using innovative risks, supply chain disruption, and a shortage years, driving an urgent and growing need to manufacturing technology—even if they don’t of skilled workers. The COVID-19 pandemic connect these technologies through a truly use the term “smart manufacturing.” has exposed existing challenges and revealed integrated smart manufacturing approach. an urgent need for smart technologies that • Smart manufacturing drives modern enable manufacturers to be more nimble. Understanding the value and ROI potential of smart manufacturing by making processes faster, manufacturing will enable businesses to pursue more automated, and more intelligent. the technology they need to become more agile, resilient, and prepared to maximize future growth. • It’s a strategic approach to address key business challenges through technology that can be connected to increase value over time.

of survey respondents believe 80% smart manufacturing is a key to their organization’s future success.

| State of Smart Manufacturing Report 3 TABLE OF CONTENTS CONTENTS TABLE OF KEY FINDING 1: FINDING KEY Appendix 2: FINDING KEY Taking action 3: FINDING KEY Future plans Industrial internet ofthings (IIoT) Cloud Current adoption Survey demographicsSurvey onmanufacturingImpact ofCOVID-19 Investing manufacturing insmart Adapting during COVID-19 Empowering the workforce manufacturing ROI ofsmart The Barriers to adoption manufacturing for case The smart Optimism disruption amidst Heightened urgency Drivers ofadoption ......

Smart manufacturing adoption has begun. manufacturing has adoption Smart Smart manufacturing maximizes tomorrow’s growth opportunities. manufacturing tomorrow’s maximizes growth Smart Market urgency drive conditions intech adoption...... | State of Smart Manufacturing Report Manuf