Manufacturers Redefine Industrial Operations With Connectivity Solutions

New Manufacturing Research from Manufacturers Alliance Foundation and Verizon Business

According to new research, “Connectivity – A Critical Differentiator for Digital Transformation,” by Manufacturers Alliance Foundation and Verizon Business, the manufacturing sector is witnessing a shift as companies embrace 5G connectivity to progress their digital transformation journey. Central to this digital-forward movement is the growth of private 5G networks, offering manufacturers control and customization over their connectivity infrastructure. By utilizing private 5G networks, manufacturers can optimize operations, enhance efficiency, and explore novel revenue streams, propelling the industry into uncharted territory. 

The recent research surveyed 172 U.S.-based mid to large-cap manufacturing companies on the adoption of different connectivity avenues, best practices, and use cases.

With 16% of manufacturers poised to transition to 4G LTE or 5G within the next three years, an eight-fold increase from the 2% that rely primarily on cellular connectivity today, the landscape of industrial connectivity is looking for a new path strong enough to weather the next disruption.

"Successful manufacturers are capitalizing on digital transformation to push forward, and time and time again we’ve heard that connectivity emerges as a cornerstone of their success," says Stephen Gold, President and CEO at Manufacturers Alliance. "By embracing technology like 5G, manufacturers obviously believe they can chart a course towards enhanced operational efficiency, heightened competitiveness, and sustained growth."

About half of surveyed manufacturers are invested in wireless connectivity with Industrial Internet of Things (IIoT), and 45% expect that 5G specifically will have the largest impact on manufacturing connectivity in the next three to five years, outpacing all other wireless technologies. Most manufacturers are continuing to deploy a mix of networks (wired, Wi-Fi, 5G) and making long-overdue technology investments to strengthen their digital backbone. Our respondents noted the diligent need for staffing with the understanding of the capabilities and needs of the latest connectivity options in IT and operations. 

“Manufacturers are increasingly aware of how fast, reliable connectivity can deliver improved functionality and efficiencies. As their knowledge expands, so do the envisioned opportunities and use cases. This report reveals a clear desire to develop expertise with 5G in manufacturing operations in order to extract more value for the business and the customer, while keeping up with the ever-increasing shift to digital,” added Mike Weller, Practice Leader for Manufacturing, Energy, and Utilities at Verizon Business. 

For deeper insights and access to the comprehensive research report, visit https://www.manufacturersalliance.org/research-insights/connectivityreport.  

About Manufacturers Alliance Foundation: 

Manufacturers Alliance Foundation is the 501(c)(3) partner of Manufacturers Alliance. The Alliance Foundation provides educational opportunities for the manufacturing community and its stakeholders through insights, events, and tools for today’s most critical business decisions. The Alliance Foundation focuses on talent, technology, digital transformation, and competitiveness. Learn more about the Alliance Foundation: manufacturersalliance.org/foundation.  

About Verizon Business: 

Verizon Communications was formed in 2000 and is one of the world’s leading providers of technology and communications services. Headquartered in New York City and with a presence around the world, Verizon generated revenues of $134.0 billion in 2023. The company offers voice, data and video services and solutions on its award-winning networks and platforms, delivering on customers’ demand for mobility, reliable network connectivity, and security. 

Source: Manufacturers Alliance Foundation