A recent survey conducted by software development company CADDi reveals that 49% of U.S. manufacturers expect a recession to impact the industry by 2025, with 84% predicting it will occur within the next two years. The research, based on responses from over 330 manufacturing professionals, highlights significant issues related to financial decision-making and data access.
The study found that 60% of procurement professionals have sourced parts at higher costs than necessary due to inadequate supplier data, which hindered their ability to negotiate effectively. Similarly, 60% missed opportunities to consolidate suppliers or secure volume discounts because they lacked historical cost data on similar parts.
Sales professionals also face challenges; 71% reported quoting or selling deals that were unprofitable due to the absence of historical engineering and procurement data.
CADDi CEO Yushiro Kato noted, “American manufacturers are under significant pressure from various fronts including economic uncertainty, talent shortages, and increasing competition from countries like China and Mexico. Our research shows that data and collaboration issues are exacerbating these pressures. Internal teams are struggling with access to the necessary information to make informed and profitable decisions, which heightens the risk for manufacturers who fail to address these inefficiencies.”
Key findings from CADDi’s “American Manufacturing Pressure and Productivity Index” include:
Talent challenges remain a major concern, with 56% citing a lack of skilled labor and 50% noting difficulties in preparing current employees for strategic roles.
Speed to market is a priority for 23% of manufacturers by 2025, but is at risk due to current inefficiencies.
77% of procurement professionals frequently encounter issues finding parts, products, or suppliers that meet engineering specifications.
68% fear the loss of institutional knowledge as senior executives retire over the next decade.
27% worry that their transformation efforts are insufficient for long-term survival.
45% of senior management leaders view digital transformation as a critical business pressure.
51% cite navigating political demands for reshoring production as a major pressure point.Data issues are significantly undermining productivity and competitiveness. Sales, procurement, and engineering teams spend
25% to 50% of their workdays tracking down crucial information and ensuring its accuracy.
Procurement professionals are most frustrated by inadequate documentation, including missing part numbers and material properties, with 73% identifying this as their top concern. Sales professionals struggle with lengthy quotation processes due to information retrieval difficulties (67%) and poor collaboration with procurement and engineering teams, leading to delays and misunderstandings (33%).