Sikich finds that few manufacturers are using IoT
According to its annual report, the professional services firm, Sikich, has found that less than 10% of manufacturers surveyed are using Internet of Thing (IoT).
Additionally, the 2018 Manufacturing Report shows that another 30% do not have a clear understanding about IoT.
“Manufacturers of all sizes can benefit from the internet of things, but too many lack the necessary understanding of the benefits and fail to embrace these transformative technologies,” remarked Jerry Murphy, Sikich’s Partner-in-Charge of Manufacturing and Distribution.
“As a result, many manufacturers and distributors miss out on significant operational improvements and efficiency gains across the supply chain, which can put them at a competitive disadvantage.”
40% of the respondents claim they don’t use robotics in their manufacturing operations.
Although more than 75% of manufacturers has not experienced any cybersecurity incidents in the previous 18 months, only 19% argue they are “very ready” to address risks, with 63% “somewhat ready”.
“Cybersecurity threats will only increase as technology becomes even more integrated into manufacturing operations,” said Brad Lutgen, Partner in Security and Compliance at Sikich.
“That’s especially true given the rapid adoption of IoT devices. Manufacturers must therefore have security programs in place to address the ever-changing threats.”
“At a minimum, a company’s program should include conducting regular risk assessments, penetration testing and vulnerability assessments to gauge its current security posture.”
“Manufacturers should also put in place vendor management programs to vet third-party technologies to make sure that vendors adequately test for security vulnerabilities.”
IMF: Variants Can Still Hurt Manufacturing Recovery
After a year of on-and-off manufacturing in the US, UK, and the eurozone, demand for goods surged early last week. Factories set growth records in April and May, suppliers started to recover, and US crude hit its highest price point since pre-COVID. As vaccination efforts immunise much of the US and UK populations, manufacturers are now able to fully ramp up their supply chains. In fact, GDP growth could approach double-digits by 2022.
Now, the ISM productivity measure has surpassed the 50-point mark that separates industry expansion from contraction. Since U.S. president Biden passed his US$1.9tn stimulus package and the UK purchasing managers index (PMI) increased to 65.6, both sides of the Atlantic are facing a much-welcomed manufacturing recovery.
Lingering Concerns Over COVID
Even as Spain, France, Italy, and Germany race to catch up, and mining companies pushed the FTSE 100 index of list shares to a monthly high of 7,129, some say that UK and US markets still suffer from a lack of confidence in raw material supplies. Yes, the Dow Jones has made up its 19,173-point crash of March 2020, and MSCI’s global stock index is at an all-time high.
Yet manufacturers around the world realise that these wins will be short-lived until pandemic supply chain bottlenecks are solved. If we keep the status quo, consumers will pay the price. In April, inflation in Germany reached 2.4%, and across the EU’s 19 member countries, overall prices have increased at an unusual pace. Some ask: Is this true recovery?
IMF: Current Boom Could Falter
Even as Elon Musk tweeted about chip shortages forcing Tesla to raise its prices, UK mining demand skyrocketed; housing markets lifted; and the pound sterling gained value. The International Monetary Fund (IMF), however, cautioned that manufacturing recovery won’t last long if COVID mutates into forms our vaccinations can’t touch. Kristalina Georgieva, Washington’s IMF director, noted that fewer than 1% of African citizens have been vaccinated: “Worldwide access to vaccines offers the best hope for stopping the coronavirus pandemic, saving lives, and securing a broad-based economic recovery”.
Across the globe, manufacturing companies are keeping a watchful eye on new developments in the spread of COVID. Though US FDA officials don’t think we’ll have to “start at square one” with new vaccines, the March 2021 World Economic Outlook states that “high uncertainty” surrounds the projected 6% global growth. Continued manufacturing success will in large part depend on “the path of the pandemic, the effectiveness of policy support, and the evolution of financial conditions”.
Mathias Cormann, secretary-general of the Organisation for Economic Co-Operation and Development (OECD) concurred—without global immunisation, the estimated economic boom expected by 2025 could go kaput. “We need to...pursue an all-out effort to reach the entire world population”, Australia’s finance minister added. US$50bn to end COVID across the world, they imply, is a small investment to restart our economies.