New research has shown the potential cost of ERP downtime, with the average UK midmarket manufacturer expecting to lose £41,888.30 in a single day of ERP outage.
The study from European software provider Forterro also revealed that more than half (53%) of respondents foresee staff downtime if their ERP system goes down for the day, while 38% anticipate reputational damage.
The strategic importance of ERP was illustrated by almost three-quarters (72%) of UK manufacturers preferring cloud-based or hybrid ERP systems for the future, driven by the growing demand for scalability, high availability, and robust data security.
“Many UK midmarket manufacturers began life as factories and workshops and while they have traditionally adopted the latest tech only when it became necessary, the stakes have now changed,” said David Coste, President, North & Western Europe, Forterro. “ERP has moved beyond that, and its importance to manufacturers is illustrated by the potential fallout should it not be available. Using cloud ERP can unlock even more value for manufacturers, providing security, resilience and availability, but not everyone is utilising cloud to the best effect.”
ERP has become a much-valued technology for midmarket manufacturers, with many benefits cited. 58% of UK respondents reported increased efficiency as the major benefit, while half highlighted real-time data. The same percentage cited standardised, consistent data across the company as a key advantage.
68% of manufacturers see cloud as an untapped opportunity, while more than half (54%) acknowledge that their lack of cloud usage is hindering the benefits of advanced technologies like AI and IoT, which have the potential to be transformative in the midmarket sector. 48% of UK midmarket manufacturers said that AI functions, such as predictive maintenance and predictive logistics, were the most desired add-on to the current system.
The main challenges in UK midmarket manufacturing overall were the ongoing global economic and political uncertainty (42%), talent retention and acquisition (36%) and protecting the supply chain (34%). With the manufacturing sector one of the most targeted industries for cyberattacks, 40% of respondents identified security as their top priority for the future.
“Manufacturing can be a complex and challenging sector, and businesses need to do all they can to protect themselves now and in the future,” continued Coste. “Technology can be a key element in that process and cloud ERP can be fundamental for any manufacturer, helping to increase operational efficiencies and also unlocking the potential within other technologies.”
The UK Midmarket Manufacturing Report: Key Tech Trends, Best Practice and Future-Proofing is available to download here: https://www.forterro.com/en/uk-midmarket-manufacturing-report
