{"id":9074,"date":"2022-02-22T09:49:03","date_gmt":"2022-02-22T09:49:03","guid":{"rendered":"https:\/\/www.mrpeasy.com\/blog\/?p=9074"},"modified":"2023-03-15T14:46:28","modified_gmt":"2023-03-15T14:46:28","slug":"industrial-machinery-transformation","status":"publish","type":"post","link":"https:\/\/www.mrpeasy.com\/blog\/industrial-machinery-transformation\/","title":{"rendered":"Industrial Machinery SMEs Are Facing a Transformation"},"content":{"rendered":"\n<p>Industrial equipment and machinery manufacturers are the\ncornerstone of the manufacturing industry. Building the technology used to\nincrease efficiency in other businesses, industrial machinery builders have\nalways been at the forefront of industrial innovation. Today, these changes are\nespecially profound.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"563\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2022\/02\/industrial-machinery-industry.jpg\" alt=\"industrial-machinery-industry\" class=\"wp-image-9079\" srcset=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2022\/02\/industrial-machinery-industry.jpg 1000w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2022\/02\/industrial-machinery-industry-300x169.jpg 300w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2022\/02\/industrial-machinery-industry-768x432.jpg 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/figure>\n\n\n\n<!--more-->\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #343333;color:#343333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #343333;color:#343333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.mrpeasy.com\/blog\/industrial-machinery-transformation\/#The_industry_at_the_center_of_the_transformation\" >The industry at the center of the transformation<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.mrpeasy.com\/blog\/industrial-machinery-transformation\/#Shifting_needs\" >Shifting needs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.mrpeasy.com\/blog\/industrial-machinery-transformation\/#New_ways_of_engineering\" >New ways of engineering<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.mrpeasy.com\/blog\/industrial-machinery-transformation\/#Servitization\" >Servitization<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.mrpeasy.com\/blog\/industrial-machinery-transformation\/#Digitalization\" >Digitalization<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.mrpeasy.com\/blog\/industrial-machinery-transformation\/#Sustainability\" >Sustainability<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.mrpeasy.com\/blog\/industrial-machinery-transformation\/#The_solution_for_SMEs\" >The solution for SMEs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.mrpeasy.com\/blog\/industrial-machinery-transformation\/#Key_takeaways\" >Key takeaways<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_industry_at_the_center_of_the_transformation\"><\/span>The industry at the center of the transformation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The industrial machinery and equipment sector is one of the largest contributors to the manufacturing landscape in the world. For one, machinery manufacturers are the backbone of industrial nations such as the United States, China, Germany, and Japan, providing employment to millions of people (<a href=\"https:\/\/www.statista.com\/statistics\/185225\/number-of-employees-in-us-machinery-manufacturing\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">1.1 million in the US alone<\/a>). But they also supply countless other industries (including themselves) with the technology to substantially increase efficiency, cut costs, and save energy. From farmers to manufacturers, from builders to miners, every sector leans on them.<\/p>\n\n\n\n<p>Today, there are tens of thousands of companies in the\nUnited States that build industrial machinery. Apart from manufacturing\nbehemoths such as General Electric, Parker Hannifin, and Caterpillar, much of\nthe industrial machinery manufacturing sector is made up of SMEs. The problems\nand changes that small and medium-sized companies experience today might also seem\nsmall compared to the gigantic disruptions and innovations taking place within\nlarger enterprises, but cumulatively their effect might be even bigger.<\/p>\n\n\n\n<p>There is no way around it, we are in the midst of an\nall-encompassing digital transformation. And even though each and every\nindustry is affected, industrial machinery manufacturers are at the center of\nthe change.<\/p>\n\n\n\n<p>But what exactly is changing and what can SME manufacturers\ndo to keep up?<\/p>\n\n\n<div class=\"banner-v2\">\n    <p class=\"banner-v2__desc\">Transform your manufacturing business with MRPeasy<\/p>\n    <a class=\"banner-v2__link\" href=\"https:\/\/www.mrpeasy.com\/sign-up\/\" target=\"_blank\" data-ga-event=\"blog_signup_banner_blue\">Try for free<\/a>\n<\/div>\t\t<style>.banner-v2 {\n    float: right;\n    display: flex;\n    flex-direction: column;\n    justify-content: center;\n    align-items: center;\n    padding: 40px 32px;\n    gap: 16px;\n    width: 356px;\n    height: 205px;\n    background: linear-gradient(199.68deg, #6084E5 13.17%, #5FA7DD 82.1%);\n    border-radius: 4px;\n    margin-left: 12px;\n    margin-bottom: 12px;\n    margin-top: 15px;\n}\n\n@media (max-width: 767.98px) {\n    .banner-v2 {\n         width: 100%;\n         height: 173px;\n         margin-bottom: 0;\n         margin-left: 0;\n    }\n}\n\n.single__content p.banner-v2__desc {\n    margin: 0 !important;\n}\n\np.banner-v2__desc {\n    width: 292px;\n    font-style: normal;\n    font-weight: 700;\n    font-size: 22px;\n    line-height: 29px !important;\n    text-align: center;\n    color: #FFFFFF;\n    margin: 0 !important;\n    order: 0 !important;\n}\n\n.single__content a.banner-v2__link {\n    color: #FFFFFF !important;\n}\n\n.single__content a.banner-v2__link:hover {\n    color: #003557 !important;\n}\n\na.banner-v2__link {\n    display: flex;\n    justify-content: center;\n    align-items: center;\n    width: 181px;\n    height: 51px;\n    padding: 18px 0;\n    border-radius: 4px;\n    background: #003557;\n    font-weight: 700;\n    font-size: 16px;\n    color: #FFFFFF !important;\n    text-decoration: none !important;\n    order: 1 !important;\n}\n\n.banner-v2__link:hover {\n    background: white;\n    color: #003557 !important;\n}<\/style>\n\t\t\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Shifting_needs\"><\/span>Shifting needs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>According to a 2016 study by Aberdeen Group, the industrial machinery industry is shifting towards greater complexity, customized products, and quicker launches to respond to changing customer needs. This means that batch sizes are shrinking, often to a single unit, and manufacturers need to find new ways to produce as efficiently and cost-effectively as possible while also offering customization options and maintaining short lead times. This is by no means an easy task, especially in companies that are used to doing things the old way, with decades-old technology and knowledge.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"New_ways_of_engineering\"><\/span>New ways of engineering<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>With the move to Industry 4.0, both the nature of industrial\nmachines and how engineers design them are changing. Customers are requesting\never more automation and connectivity, which feeds the explosive development of\nindustrial robotics and IoT while also signifying increasingly complex <a href=\"https:\/\/www.mrpeasy.com\/blog\/bill-of-materials\/\">bills\nof materials<\/a> and production processes. <\/p>\n\n\n\n<p>Although a decade ago, this would have meant much higher expenditures in the prototyping stage, today these new machines and processes can be modeled and simulated virtually. With the advent of open-source manufacturing, including publicly shared designs and additive manufacturing, costs related to designing, prototyping, and even manufacturing can be substantially reduced.<\/p>\n\n\n\n<p>Even the way components are manufactured is slowly taking a\nturn from machining to additive manufacturing, with 3D printers becoming\ncapable of printing high-quality, durable metal precision parts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Servitization\"><\/span>Servitization<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Another trend that machinery manufacturers are seeing, is\nthe shift from merely building products to also creating services that go along\nwith them, resulting in what we call servitization. Servitization essentially\nmeans providing a complete solution, an \u201coutcome as a service\u201d. The burden of\norganizing parts delivery, providing repair and maintenance services, and even doing\nperformance analysis is slowly but steadily being taken on by the machinery\nmanufacturers themselves. <\/p>\n\n\n\n<p>Performing these services along with selling the products\ndoes not, however, automatically mean you provide a solution. A solution is\nborn when you insert yourself into the processes of your customer and gather\ntheir data to make decisions for them, resulting in improvements in their\nmachine performance, business processes, and bottom line. Instead of inputs,\nOEMs can sell outcomes, increasing customer satisfaction and their own profit\nmargin.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Digitalization\"><\/span>Digitalization<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Modern industrial equipment companies are slowly but surely turning toward digital solutions to improve their workflows, be it modeling and simulation software, IIoT solutions that help gather production and machine performance data, or equipment that can be controlled remotely. <\/p>\n\n\n\n<p>While these advanced solutions are still the playground of large enterprises and have only entered the periphery of SME manufacturers, there are also digital solutions that can be regarded as the first steps of digitalization: <a href=\"https:\/\/www.mrpeasy.com\/blog\/manufacturing-erp-systems\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">manufacturing ERP systems<\/a>. What sets modern ERP\/MRP software apart from the ones that have been on the market for decades is that they are inexpensive, user-friendly, and designed with SMEs in mind.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sustainability\"><\/span>Sustainability<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Another important global trend we see affecting the\nmanufacturing industry is the drive toward better sustainability. Both\ngovernments and the public, and investors as a consequence, are pushing\nmanufacturers to cut down on industrial emissions, minimize waste, and reduce\nthe damage wrought on the environment.<\/p>\n\n\n\n<p>This is where new technologies and materials play an increasingly important role, but a change in business practices is necessary as well. While renewable energy solutions are surging, machinery is becoming more efficient, and more sustainable materials are becoming economically viable, the supply chain disruptions of recent years have also created a need for reshoring, bringing manufacturing once again closer to the consumers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_solution_for_SMEs\"><\/span>The solution for SMEs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>So, what\u2019s a small to medium-sized industrial equipment\nmanufacturer (or any other manufacturer for that matter) to do? The solution is\nquite straightforward: to embrace new technologies and start transforming your\nbusiness sooner rather than later. Because every month you postpone adopting a\ntechnology that would make you more competitive is a month\u2019s worth of head\nstart for your rival companies.<\/p>\n\n\n\n<p>This does not mean, however, that you should rush into implementing IIoT, advanced robotics, machine learning, and every other industrial innovation there is without carefully mapping out your needs. The first step in a manufacturer\u2019s digital transformation should always be the implementation of an <a href=\"https:\/\/www.mrpeasy.com\/enterprise-resource-planning\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">ERP\/MRP system<\/a>.<\/p>\n\n\n\n<p>An ERP\/MRP system acts as an infrastructure for information sharing across the business. It collects business data and analyzes it in order to improve production efficiency, organize inventory and minimize the associated costs, increase scheduling accuracy and visibility in the supply chain, and provide an accurate, real-time overview of other aspects of the business. This all lays the foundation for providing better customer service, minimizing waste, and making the business substantially more cost-effective. Additionally, the successful implementation of an ERP\/MRP software could usher in the adoption of further innovations.<\/p>\n\n\n<div class=\"banner-v1\">\n    <div class=\"banner__text\">\n        <div class=\"banner-v1__title\">Your company deserves effective manufacturing software<\/div>\n        <div class=\"banner-v1__desc\">MRPeasy users report a 54% average improvement in the overall performance of their company and a 42% increase in on-time deliveries.<\/div>\n        <div><a class=\"banner-v1__link\" href=\"https:\/\/www.mrpeasy.com\/sign-up\/\" target=\"_blank\" data-ga-event=\"blog_signup_banner_white\">Try for free<\/a><\/div>\n    <\/div>\n    <div class=\"banner__img\">\n        <img decoding=\"async\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/themes\/mrpeasy\/assets\/images\/banner.svg\" alt=\"banner\">\n    <\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_takeaways\"><\/span>Key takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>The industrial machinery and equipment sector is one of the largest contributors to the manufacturing landscape in the world, providing employment to millions of people and creating technology that helps other industries become more efficient.<\/li><li>Even though today, each and every industry is affected by rapid changes taking place thanks to digital transformation and supply chain disruptions, industrial machinery manufacturers are at the center of the change.<\/li><li>For one, the industrial machinery industry is shifting towards greater complexity, customized products, and quicker launches, meaning that manufacturers must find new, more efficient, and quicker ways to prototype and manufacture their products.<\/li><li>Innovations in engineering, such as virtual modeling and simulations, as well as 3D printing, are making prototyping and launching products easier and more cost-effective.<\/li><li>Another trend that machinery manufacturers are seeing is servitization. Servitization essentially means providing a complete solution, an \u201coutcome as a service\u201d, e.g. providing repair and maintenance services, and even doing performance analysis after the piece of equipment has been sold. <\/li><li>Manufacturers are also pushed to cut down on industrial emissions, minimize waste, and reduce the damage wrought on the environment by utilizing more efficient machinery, renewable energy, and more sustainable materials while also reshoring production.<\/li><li>The solution to keeping up with the changes is to embrace them and take the necessary steps not to lag behind the competition. The first step should be to implement an ERP\/MRP system.<\/li><\/ul>\n\n\n\n<p><em>You may also like: <a href=\"https:\/\/www.mrpeasy.com\/blog\/advantages-disadvantages-using-mrp-system\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Advantages and Disadvantages of Using an MRP System<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Industrial equipment and machinery manufacturers are the cornerstone of the manufacturing industry. Building the technology used to increase efficiency in other businesses, industrial machinery builders have always been at the forefront of industrial innovation. Today, these changes are especially profound.<\/p>\n","protected":false},"author":7,"featured_media":9079,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[94],"tags":[67,255,305,705,306,1032,1033,1034,602,1035,414],"class_list":["post-9074","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tips","tag-3d-printing","tag-digital-manufacturing","tag-digital-transformation","tag-digitalization","tag-digitization","tag-industrial-equipment-and-machinery","tag-industrial-machinery-manufacturers","tag-industrial-manufacturing","tag-manufacturing-technology","tag-reshoring","tag-virtual-manufacturing"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Industrial Machinery SMEs Are Facing a Transformation - MRPeasy<\/title>\n<meta name=\"description\" content=\"Industrial machinery manufacturers have always been at the forefront of industrial innovation. 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