May 6, 2010 - March was the eighth consecutive month of economic growth in manufacturing. This is the fastest rate of growth the industry has seen since July of 2004 ( source ). Software Advice, a website that reviews and compares manufacturing software systems , recently held a roundtable discussion to share observations on how this is impacting IT purchase and implementation activity. According to their report, 2010 is already shaping up to be a more active year than 2009. Activity is up across the board with spending patterns emerging in certain industries and sizes of businesses.
For example, food and chemical manufacturers are the most active industries in process manufacturing. This activity can largely be attributed to their sustained growth during the slow economy. Among their discrete counterparts, consumer packaged goods manufacturers are the most active.Experts from the roundtable are also noticing trends by size of business. For example, most large manufacturing companies are extending existing systems rather than implementing new ERP software.
Most of these firms have already implemented an ERP system, so they are adding new application functionality and consolidating plants onto their corporate standard ERP system. Meanwhile, small and medium enterprises are buying ERP software for the first time. Limited by budgets and technical resources, many smaller firms are considering software as a service (SaaS) solutions.Finally, when asked what are the main reasons people are buying, functionality continues to be the most highly weighted ERP selection criteria.
Given that every manufacturing business is unique (e.g. industry, mode), requirements continue to be very specific to the buyer. “Functionality is the most highly cited reason justifying an ERP purchase. There is nothing controversial about this result.
Companies want to buy systems that best fit their needs. The important lesson for prospective ERP customers is that they first need to assess their business and system needs. Only then will they be able to determine best-fit ERP features and functionalities.”To read the full report, visit: 2010 Manufacturing Software State of the Industry Roundtable