Manufacturing COO Pulse Survey
What’s next in manufacturing: The latest executive insights on the future of the industry
Reinventing manufacturing for a changed world
Over the past year, manufacturing firms have faced unprecedented disruption. Rapid, daunting change caused by the COVID-19 crisis has resulted in accelerated digitalisation, increased occurrence of cyber attacks, and transformed consumer behavior. For manufacturers, the pandemic has revealed weaknesses across their end-to-end activities—and highlighted the need for greater resilience and agility.
Amid such a turbulent backdrop, we wanted to know—what does the future of manufacturing look like? So we asked. In PwC’s COO Pulse Survey, we reveal the plans and priorities of global manufacturing executives from 585 large companies as they look ahead. To review the findings, use our interactive tool below and discover what manufacturing leaders are doing today to rethink and reconfigure for a stronger tomorrow. I hope you enjoy exploring the survey, and I invite you to contact us to learn more.
Anil Khurana
Global Industrial Manufacturing & Automotive Leader
Click on the questions below to explore a sampling of our survey findings and filter the insights by sector, geography, and business size.
Q1. Which of the following areas of vulnerability will require the most cybersecurity improvement over the next 6 months and over the next 1-2 years?
The cybersecurity imperative
Cybersecurity in manufacturing is no longer a nice-to-have. In the wake of a substantial rise in cyber attacks during the pandemic, manufacturers are experiencing a sense of urgency to increase preparedness against targeted digital intrusions. Where will manufacturers make improvements to their cybersecurity systems? Our data reveals that connected systems and devices—as well as manufacturing facilities and equipment—top the list of the most unprotected areas.
Click the + sign below the answers to expand the data and see additional sector-specific feedback from manufacturing executives. Click the tabs for sector, geography, and business size. Then use the drop-down menu below to dive deeper into the data. The figures shown represent the percentage of manufacturing executives who provided that answer.
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Get in touch to discuss the full findings or how PwC can help.
| Select sector | All | Aerospace & defence | Automotive | Consumer goods | Electronics and technology | Energy, utilities, resources | Engineering and construction | Health industries manufacturing | Industrial manufacturing and equipment |
|---|---|---|---|---|---|---|---|---|---|
| IoT and embedded systems and devices | 48% | 48% | 57% | 40% | 40% | 58% | 47% | 51% | 43% |
| R&D and planning tools and facilities | 36% | 40% | 42% | 16% | 58% | 31% | 22% | 36% | 34% |
| Manufacturing facilities, plant, and equipment | 33% | 41% | 39% | 31% | 13% | 24% | 36% | 31% | 32% |
| Select country | China | Germany | Japan | UK | US |
|---|---|---|---|---|---|
| IoT and embedded systems and devices | 41% | 53% | 34% | 47% | 59% |
| R&D and planning tools and facilities | 39% | 35% | 42% | 39% | 30% |
| Manufacturing facilities, plant, and equipment | 31% | 43% | 28% | 25% | 37% |
| Select business size | $1 billion to $4.99 billion | $5 billion and over | $250 million to $999 million |
|---|---|---|---|
| IoT and embedded systems and devices | 51% | 51% | 43% |
| R&D and planning tools and facilities | 32% | 40% | 37% |
| Manufacturing facilities, plant, and equipment | 36% | 34% | 29% |
| Country/business size | China | Germany | Japan | UK | US | $1 billion to $4.99 billion | $5 billion and over | $250 million to $999 million |
|---|---|---|---|---|---|---|---|---|
| IoT and embedded systems and devices | 40% | 50% | 30% | 40% | 63% | 55% | 34% | 64% |
| R&D and planning tools and facilities | 45% | 40% | 35% | 45% | 38% | 42% | 39% | 39% |
| Manufacturing facilities, plant, and equipment | 30% | 55% | 40% | 35% | 43% | 52% | 36% | 39% |
| Country/business size | China | Germany | Japan | UK | US | $1 billion to $4.99 billion | $5 billion and over | $250 million to $999 million |
|---|---|---|---|---|---|---|---|---|
| IoT and embedded systems and devices | 50% | 50% | 45% | 65% | 65% | 56% | 63% | 51% |
| R&D and planning tools and facilities | 40% | 45% | 45% | 55% | 33% | 40% | 43% | 43% |
| Manufacturing facilities, plant, and equipment | 30% | 55% | 25% | 40% | 43% | 37% | 50% | 30% |
| Country/business size | China | Germany | Japan | UK | US | $1 billion to $4.99 billion | $5 billion and over | $250 million to $999 million |
|---|---|---|---|---|---|---|---|---|
| IoT and embedded systems and devices | 35% | 50% | 15% | 50% | 55% | 50% | 50% | 33% |
| R&D and planning tools and facilities | 40% | 25% | 50% | 30% | 30% | 24% | 46% | 37% |
| Manufacturing facilities, plant, and equipment | 50% | 30% | 20% | 10% | 40% | 33% | 36% | 28% |
Q2. Which manufacturing platforms, technologies, and tools is your company prioritising over the next 6 months and over the next 1-2 years?
Next generation manufacturing systems
To operate more effectively during the pandemic—and in the digital-first world that will follow it—manufacturers across industries have been sharpening their focus on new systems and technologies. Which platforms and tools are manufacturers betting on for the years ahead? Our data shows that both cloud and IoT will continue as mainstays of manufacturing technology in the short-term, while the longer-term horizon will find manufacturers prioritising threat-map dashboards to track cyber risks.
Click the + sign below the answers to expand the data and see additional sector-specific feedback from manufacturing executives. Click the tabs for sector, geography, and business size. Then use the drop-down menu below to dive deeper into the data. The figures shown represent the percentage of manufacturing executives who provided that answer.
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Get in touch to discuss the full findings or how PwC can help.
| Select sector | All | Aerospace & defence | Automotive | Consumer goods | Electronics and technology | Energy, utilities, resources | Engineering and construction | Health industries manufacturing | Industrial manufacturing and equipment |
|---|---|---|---|---|---|---|---|---|---|
| IoT | 70% | 83% | 64% | 67% | 71% | 53% | 69% | 60% | 74% |
| Public and private cloud | 59% | 68% | 57% | 58% | 56% | 53% | 51% | 58% | 58% |
| Robotic process automation | 51% | 56% | 53% | 49% | 56% | 53% | 42% | 47% | 46% |
| Select Country | China | Germany | Japan | UK | US |
|---|---|---|---|---|---|
| IoT | 68% | 76% | 65% | 75% | 68% |
| Public and private cloud | 52% | 71% | 41% | 65% | 63% |
| Robotic process automation | 61% | 49% | 51% | 50% | 46% |
| Select business size | $1 billion to $4.99 billion | $5 billion and over | $250 million to $999 million |
|---|---|---|---|
| IoT | 74% | 67% | 69% |
| Public and private cloud | 58% | 59% | 59% |
| Robotic process automation | 47% | 54% | 51% |
| Country/business size | China | Germany | Japan | UK | US | $1 billion to $4.99 billion | $5 billion and over | $250 million to $999 million |
|---|---|---|---|---|---|---|---|---|
| IoT | 90% | 85% | 95% | 75% | 78% | 87% | 80% | 85% |
| Public and private cloud | 65% | 80% | 65% | 60% | 70% | 65% | 70% | 70% |
| Robotic process automation | 80% | 40% | 60% | 55% | 50% | 52% | 59% | 55% |
| Country/business size | China | Germany | Japan | UK | US | $1 billion to $4.99 billion | $5 billion and over | $250 million to $999 million |
|---|---|---|---|---|---|---|---|---|
| IoT | 60% | 70% | 50% | 85% | 60% | 63% | 57% | 73% |
| Public and private cloud | 50% | 75% | 30% | 60% | 65% | 53% | 68% | 51% |
| Robotic process automation | 55% | 60% | 60% | 45% | 48% | 49% | 57% | 51% |
| Country/business size | China | Germany | Japan | UK | US | $1 billion to $4.99 billion | $5 billion and over | $250 million to $999 million |
|---|---|---|---|---|---|---|---|---|
| IoT | 70% | 75% | 55% | 75% | 85% | 87% | 71% | 63% |
| Public and private cloud | 50% | 75% | 50% | 75% | 50% | 61% | 43% | 65% |
| Robotic process automation | 40% | 70% | 45% | 40% | 53% | 41% | 54% | 46% |
Q3. Which changes in B2B and B2C customer needs and behaviors will have the biggest impact on your business over the next 6 months and over the next 1-2 years?
The impact of changing customer needs
As COVID-19 changed the world, customer needs changed as well. The pandemic has transformed consumer priorities, behaviors and digital expectations, forcing manufacturers to rethink how they work. Which shifts in customer preferences do manufacturers expect to impact them the most in the years to come? Our data indicates that increasing demand for transparency and digital channels will have the greatest effect. Yet further predictions for the future differ between B2C and B2B companies.
Click the + sign below the answers to expand the data and see additional sector-specific feedback from manufacturing executives. Click the tabs for sector, geography, and business size. Then use the drop-down menu below to dive deeper into the data. The figures shown represent the percentage of manufacturing executives who provided that answer.
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Get in touch to discuss the full findings or how PwC can help.
| Select sector | All | Aerospace & defence | Automotive | Consumer goods | Electronics and technology | Energy, utilities, resources | Engineering and construction | Health industries manufacturing | Industrial manufacturing and equipment |
|---|---|---|---|---|---|---|---|---|---|
| Greater use of digital channels | 52% | 57% | 46% | 60% | 58% | 36% | 53% | 47% | 53% |
| Use of omni-channel shopping | 39% | 47% | 31% | 51% | 44% | 31% | 36% | 24% | 42% |
| Digitally enabled, connected products | 38% | 41% | 43% | 38% | 40% | 31% | 24% | 40% | 38% |
| Select country | China | Germany | Japan | UK | US |
|---|---|---|---|---|---|
| Greater use of digital channels | 54% | 55% | 44% | 55% | 51% |
| Use of omni-channel shopping | 33% | 40% | 40% | 38% | 41% |
| Digitally enabled, connected products | 33% | 39% | 40% | 30% | 44% |
| Select business size | $1 billion to $4.99 billion | $5 billion and over | $250 million to $999 million |
|---|---|---|---|
| Greater use of digital channels | 56% | 49% | 49% |
| Use of omni-channel shopping | 39% | 43% | 34% |
| Digitally enabled, connected products | 37% | 36% | 41% |
| Country/business size | China | Germany | Japan | UK | US | $1 billion to $4.99 billion | $5 billion and over | $250 million to $999 million |
|---|---|---|---|---|---|---|---|---|
| Greater use of digital channels | 55% | 60% | 45% | 60% | 63% | 58% | 63% | 48% |
| Use of omni-channel shopping | 35% | 50% | 55% | 55% | 43% | 39% | 55% | 39% |
| Digitally enabled, connected products | 45% | 45% | 50% | 15% | 45% | 45% | 43% | 33% |
| Country/business size | China | Germany | Japan | UK | US | $1 billion to $4.99 billion | $5 billion and over | $250 million to $999 million |
|---|---|---|---|---|---|---|---|---|
| Greater use of digital channels | 50% | 60% | 45% | 40% | 40% | 47% | 45% | 46% |
| Use of omni-channel shopping | 10% | 45% | 40% | 25% | 33% | 35% | 33% | 24% |
| Digitally enabled, connected products | 50% | 55% | 45% | 40% | 33% | 44% | 35% | 49% |
| Country/business size | China | Germany | Japan | UK | US | $1 billion to $4.99 billion | $5 billion and over | $250 million to $999 million |
|---|---|---|---|---|---|---|---|---|
| Greater use of digital channels | 60% | 50% | 40% | 55% | 57% | 67% | 39% | 48% |
| Use of omni-channel shopping | 45% | 35% | 25% | 45% | 50% | 48% | 39% | 37% |
| Digitally enabled, connected products | 15% | 35% | 50% | 30% | 48% | 37% | 39% | 37% |
Q4. Which of the following areas will your firm prioritise for performance measurement over the next 6 months and over the next 1-2 years?
A new era of manufacturing metrics
The manufacturing industry is transforming—and ways to measure success are evolving, too. As the pandemic accelerates the transition to advanced technologies and raises social and safety concerns, metrics to gauge progress are expanding beyond financial indicators. How are manufacturers planning to measure performance in the future? Our data shows that metrics for productivity, innovation, and digitalisation will rise in importance—as manufacturers also put higher value on sustainability and CSR measurements.
Click the + sign below the answers to expand the data and see additional sector-specific feedback from manufacturing executives. Click the tabs for sector, geography, and business size. Then use the drop-down menu below to dive deeper into the data. The figures shown represent the percentage of manufacturing executives who provided that answer.
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Get in touch to discuss the full findings or how PwC can help.
| Select sector | All | Aerospace & defence | Automotive | Consumer goods | Electronics and technology | Energy, utilities, resources | Engineering and construction | Health industries manufacturing | Industrial manufacturing and equipment |
|---|---|---|---|---|---|---|---|---|---|
| Productivity and efficiency | 56% | 66% | 54% | 56% | 53% | 42% | 69% | 42% | 55% |
| Innovation and R&D | 51% | 55% | 49% | 40% | 51% | 56% | 49% | 49% | 53% |
| Digital transformation | 46% | 53% | 38% | 40% | 47% | 47% | 47% | 49% | 47% |
| Select country | China | Germany | Japan | UK | US |
|---|---|---|---|---|---|
| Productivity and efficiency | 66% | 54% | 56% | 53% | 42% |
| Innovation and R&D | 55% | 49% | 40% | 51% | 56% |
| Digital transformation | 53% | 38% | 40% | 47% | 47% |
| Select business size | $1 billion to $4.99 billion | $5 billion and over | $250 million to $999 million |
|---|---|---|---|
| Productivity and efficiency | 66% | 54% | 56% |
| Innovation and R&D | 55% | 49% | 40% |
| Digital transformation | 53% | 38% | 40% |
| Country/business size | China | Germany | Japan | UK | US | $1 billion to $4.99 billion | $5 billion and over | $250 million to $999 million |
|---|---|---|---|---|---|---|---|---|
| Productivity and efficiency | 75% | 70% | 70% | 75% | 53% | 65% | 73% | 55% |
| Innovation and R&D | 60% | 50% | 45% | 45% | 65% | 65% | 50% | 55% |
| Digital transformation | 55% | 70% | 50% | 50% | 45% | 45% | 57% | 52% |
| Country/business size | China | Germany | Japan | UK | US | $1 billion to $4.99 billion | $5 billion and over | $250 million to $999 million |
|---|---|---|---|---|---|---|---|---|
| Productivity and efficiency | 40% | 80% | 55% | 50% | 50% | 47% | 68% | 49% |
| Innovation and R&D | 70% | 50% | 50% | 25% | 50% | 42% | 45% | 62% |
| Digital transformation | 20% | 30% | 45% | 35% | 48% | 42% | 40% | 30% |
| Country/business size | China | Germany | Japan | UK | US | $1 billion to $4.99 billion | $5 billion and over | $250 million to $999 million |
|---|---|---|---|---|---|---|---|---|
| Productivity and efficiency | 60% | 45% | 45% | 75% | 53% | 59% | 46% | 57% |
| Innovation and R&D | 40% | 50% | 60% | 55% | 57% | 61% | 46% | 50% |
| Digital transformation | 40% | 50% | 45% | 60% | 43% | 48% | 39% | 50% |
Contact us
Anil Khurana
Global Industrial Manufacturing & Automotive Leader, Principal, PwC United States
Tel: +1 (734) 773 8902
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