How can companies be sure to gain value from manufacturing analytics and AI projects? It turns out benefits are ubiquitous for those who have invested. Yet the Top Performers in our new survey of over 400 manufacturing respondents indicates some key differences that improve their results.
Please enjoy the summary* below. For the full research, please visit our sponsor MESA International (registration required).
Table of Contents
- It’s Time to Invest in Analytics and AI
- Why Invest in Manufacturing Operations and Analytics
- Business Challenges
- Smart Manufacturing Journey
- Smart Manufacturing Progress
- Investment Outcomes
- Analytics May Pay Off Faster Than Other Software
- Analytics and AI Deliver Benefits that Matter
- Top Performers Are Role Models
- Smarter Manufacturing
- Descriptive Analytics
- Predictive Analytics
- Predictive Analytics Hurdles
- Overcoming the Challenges
- Predictive Analytics Benefits
- Generative AI and Analytics to Support and Guide
- GenAI Hurdles
- GenAI Benefits
- Rapid Benefits from GenAI
- Manufacturing DataOps Needs Improvement
- Industry-Specific AI
- Key Takeaways
- Recommendations
- About the Research
- Acknowledgments
It’s Time to Invest in Analytics and AI
Analytics and AI Deliver Value to Manufacturing
Analytics and artificial intelligence (AI) are hot topics in manufacturing operations today. This research explores what companies are doing, why, and how. The data from 423 responses from companies that manufacture or produce worldwide is conclusive. Those investing in Analytics and AI are gaining substantial benefits. The benefits matter, as they are in the areas that match their objectives: cost, efficiency/productivity, quality, and error-proofing most commonly.
100% of these respondents are facing significant challenges, and 99% are investing in manufacturing operations, analytics, and AI to address them. Those using analytics and AI longer tend to see benefits in more areas.
Top Performers doing better on operations metrics are also outperforming Others on business metrics. What are they doing differently? More of them are using dashboards, analytics, and AI. They also prioritize use cases based on business value.
Analytics May Pay Off Faster Than Other Software
Quick Positive Impact
Investments are always made to yield a return or positive impact. Just as the previous time MESA partnered to conduct this research2, advanced analytics was the top application for rapidly delivering ROI. Nearly a third of the respondents gained the value of analytics and AI relatively rapidly.
Changes Over Time
We suspect many of the changes between 2022 and 2025 are due to the different sets of respondents. Other possible reasons for the significant changes: The big new drive to AI in the past couple of years is likely a factor in its more prominent showing. Maintenance and asset management have been a focus of predictive analytics. In contrast, sustainability has moved into the realm of legal and regulatory requirements, which may be slowing the benefits.
Critical Data
Each use case will require a specific set of data. New technologies make it easier to identify and extract essential data from existing sources.
Data Foundation
Most of these projects require modeling and data-cleansing efforts to deliver benefits. Companies gaining rapid benefits from analytics and AI will likely already have a good data foundation.
Paving the Path to Value
Companies may get a solid data foundation by implementing some of the other systems on this list, such as ERP, Asset Management, and Manufacturing Execution Systems (MES) or Manufacturing Operations Management (MOM).
Analytics and AI Deliver Benefits That Matter
100% Gaining Benefits
Analytics projects are delivering significant benefits that support top drivers and help meet challenges. Every one of these respondents (100%) reports gaining benefits from analytics programs, which is excellent news for our industries.
Cost
Cost reduction is the #1 driver (p. 4) and actual benefit. Most companies know they could lower costs, but analytics and AI can help to pinpoint where to focus efforts. Predictive and preventive analytics can avoid an array of unnecessary expenses due to waste.
Efficiency & Quality
Efficiency contributes to cost and indicates people are effective, even in the face of a skilled workforce shortage. Error-proofing is necessary for less skilled staff, and even more experienced staff can benefit from error-proofing when change is rapid, the product mix through the plant is high, or specifications change frequently.
What Customers Need
On-time perfect orders make the company a reliable supplier, leading to revenue opportunities and being viewed as trustworthy in these uncertain times. Customers also seek quality; internally that lowers costs, increases revenue opportunity, improves supply chain resilience, and enhances sustainability.
And More
Other areas where respondents report significant benefits from analytics programs include:
- Office visibility into performance (22%), which is crucial to executives and other disciplines since manufacturing is at the center of the company.
- Planning and scheduling at 21% is heavily dependent on insights and is inherently an analytical process.
- Customer satisfaction and collaboration (20%) based on analyzed data and sharing insights can drive revenue.
- Some get benefits in waste/scrap/energy, asset performance and uptime, comparability among lines or sites, employee satisfaction, supplier issues, and returns or warranty costs.
Key Takeaways
Progress: Manufacturers are moving along the Smart Manufacturing path. Many have multiple projects underway or are already seeing results.- Seeking Data Outcomes: Manufacturers are seeking some fundamental data management outcomes from their investments, such as easy access to high-quality, timely, complete plant data for plant employees and integration of equipment, plant, and enterprise data.
- Interested in New Technologies: Many are also focused on advanced analytics and IIoT.
- Varied Drivers: What matters most to manufacturers right now varies, but cost reduction, supply chain resilience, sustainability, workforce skills, and revenue opportunity top the list.
- AI Delivering Benefits: Fortunately, AI in all its forms is delivering benefits in desired areas. Benefits come relatively quickly, with expected payback often in less than a year.
- Supporting Operations: AI can help fill the knowledge gap in today’s workforce, driving efficiency and guiding people.
- Key Differences: Top Performers are more likely to have organizational structures, capabilities, and technologies to support their success.
- Room for Improvement: Nearly all manufacturers we surveyed could improve their data management, governance, accessibility, and operations. We are growing as an industry in this area.
*This summary is an abbreviated version of the ebook and does not contain the full content. For the full research, please visit our research partner MESA International, where the full report is available for members.
Tech-Clarity and MESA have made an executive summary available for the public as well.
This research was sponsored by and is also licensed to Aegis Software, Arch Systems, Epicor, and GE Vernova.
If you have difficulty obtaining a copy of the research, please contact us.