The digital supply chain is a key driver of competitive advantage for manufacturers. Keeping up-to-date with manufacturing supply chains trends to upgrade and improve your logistics and procurement is an integral part of this. Businesses that invest in their supply chain, upgrading their capabilities and services in this area, are likely to emerge as manufacturing sector leaders, future-proofing themselves against increased competitiveness and uncertainties.
Data indicates a strong upward trend in the investments made by manufacturers in their supply chains. At Acorn we make sure to be aware of, and react and plan accordingly, to industry trends and developments. Consequently, we've gathered here 53 of the key facts, statistics and survey insights from key recent industry reports that will allow you to get a valuable snapshot into the emerging trends and technologies that are shaping the future of manufacturing supply chains, as well as the perspectives and experiences of the industry professionals who are managing them.
53 essential industry statistics and trends impacting modern manufacturing logistics and supply chain
Demand for Resilient Supply Chains
The importance of supply chain agility and resiliency is underscored by the 51% of survey respondents identifying it as a top trend impacting their operations. It emphasises the need for companies to adopt adaptable strategies to manage market dynamics and disruptions.
Source: MHI Annual Industry Report 2024, with Deloitte
Supply Chain Investment for Success
55% have increased their supply chain investment to ensure efficient operation, reduce costs, and increase satisfaction with partners and customers (88% of which plan to spend over $1M, and 42% over $10M). This finding illustrates the strategic investment in long-term success to build more agile, resilient supply chains to future-proof against global challenges.
Source: Fictiv State of Manufacturing Report 2023
Technology Adoption Rates
A striking 85% of supply chain leaders anticipate integrating AI and IoT technologies within the next five years. This reflects the strong commitment and need for digital transformation within the manufacturing industry, and high performing OEMs in particular.
Source: MHI Annual Industry Report 2024, with Deloitte
Proximity to Suppliers Boosts Resilience
Two-thirds say that over the past 12 months they have "obtained more inputs" from suppliers located closer to their production sites. This is double the share of companies who reported using near-shoring strategies last year.
Source: McKinsey Supply Chain Pulse Survey 2023
Global Supply Chain Management Market Growth
Worldwide the supply chain management market size accounted for USD 25.74 billion in 2022 and is projected to hit around USD 72.1 billion by 2032. This demonstrates a CAGR of 10.9% during the forecast period from 2023 to 2032.
Source: Precedence Supply Chain Market Industry Report 2023
AI Transforming Product Development
97% expect AI to impact product development and manufacturing. Technology, particularly artificial intelligence, is playing an increasingly important role in navigating a challenging economic environment.
Source: Fictiv State of Manufacturing Report 2023
Challenges in Supply Chain Management
30% of manufacturers predict an improvement in supply chain disruptions, yet this remains a critical area of concern, reflecting ongoing global logistical challenges.
Source: Make UK Executive Summary 2024, with PWC
ESG in Supply Chain Management
Manufacturers are not only implementing ESG criteria within their operations but are also increasingly requiring similar standards from their suppliers. 74% of manufacturers have set ESG conditions for suppliers, ensuring that sustainability permeates through the supply chain.
Source: Make UK / Lloyds Bank ESG in UK Manufacturing 2023
Widespread Supply Chain Disruptions
An overwhelming 87% of executives report that their organisations have experienced disruptions over the last year, emphasising the persistent instability in global supply chains.
Source: Executive Supply Chain Survey 2023 by Blue Yonder
Increase in Technology Investments
55% of industry leaders report an increase in investments in supply chain technologies, aiming to bolster operational efficiency and adaptability in response to evolving market demands.
Source: MHI Annual Industry Report 2024, with Deloitte
Brexit Disruption: Supply Chain Challenges
83% fear the biggest disruption from Brexit is yet to come, with Brexit having been the biggest disrupter to supply chains recently for British manufacturers. Actionable scenario planning and supply chain agility has been made difficult through blockages and the stop/start of UK infrastructural implementation.
Source: Ivalua Procurement Survey, September 2022
Expanding ESG Engagement
An impressive 62% of UK manufacturers now have ESG targets or KPIs, marking a significant 48% increase since 2021. This surge reflects a robust commitment to sustainability as a core aspect of business strategy.
Source: Make UK / Lloyds Bank ESG in UK Manufacturing 2023
Areas Contributing to Escalating Costs
About 48% of companies have seen their profit margins shrink due to rising costs, with raw materials (43%) being the most affected area, followed by inventory (15%), transportation (14%), and labour (14%).
Source: Executive Supply Chain Survey 2023 by Blue Yonder
Innovation Discrepancy
Although the UK ranks highly in global innovation indexes, it falls behind in innovation diffusion, ranking only 38th worldwide. This highlights a critical gap between innovation capabilities and their practical application in the industry, suggesting a need for enhanced focus on technology transfer, adoption, and integration.
Source: Make UK Beyond Ambition: Advanced Manufacturing Report 2024
AI Adoption and Decision-Making
47% of organisations are intensifying their focus on deploying artificial intelligence (AI) to enhance decision-making processes. This trend underscores the pivotal role AI plays in optimising supply chain management.
Source: MHI Annual Industry Report 2024, with Deloitte
Comprehensive ESG Strategies
Despite the growth in ESG targets, only 56% of manufacturers have formal ESG strategies. This is a gap that suggests while many are setting goals, a smaller proportion have clear plans to achieve them, potentially risking the effectiveness of their ESG initiatives.
Source: Make UK / Lloyds Bank ESG in UK Manufacturing 2023
Generative AI Revolutionising Supply Chain
Market size in this burgeoning area was valued at USD 301.83 million in 2022. Expected to reach around USD 12,941.14 million by 2032, it is growing at a CAGR of 45.62% during the forecast period from 2023 to 2032.
Source: Precedence Supply Chain Market Industry Report 2023
Rising Digital Adoption
Only 12.5% of manufacturers are making digital technologies central to their strategies, despite recognising its significant potential to increase productivity. This is a crucial area to address for development given the broader industry trend towards digitalisation.
Source: Make UK Executive Summary 2024, with PWC
Adoption of Predictive Analytics
59% of companies are already utilising predictive analytics to enhance supply chain operations, suggesting a growing reliance on data-driven strategies to anticipate market trends, manage risks, and optimise logistical processes effectively.
Source: KPMG Future of Supply Chain Report 2023
Support and Resources for ESG Goals
There's an increasing need for support, with only 27% of manufacturers receiving help from their customers to meet ESG requirements. However, 48% feel they lack the necessary resources, highlighting a significant area for improvement in industry support structures.
Source: Make UK / Lloyds Bank ESG in UK Manufacturing 2023
Investment in Net Zero and Digital Technologies
About 23% of manufacturing leaders see opportunities in net zero, digital technology, cloud, and AI, demonstrating a growing alignment of sustainability with technological advancement in manufacturing strategies. It is imperative these technologies are embedded in your supply chain.
Source: Make UK Executive Summary 2024, with PWC
Delivery Delays
Due to global events and circumstances creating global supply disruptions, 52% of respondents indicate these issues interfere with their ability to deliver to customers on time, directly affecting service levels and customer satisfaction.
Source: Executive Supply Chain Survey 2023 by Blue Yonder
ESG and Business Strategy
Despite a significant interest in sustainable practices, only a quarter of manufacturers are actively looking to leverage net zero opportunities to boost growth, suggesting businesses find it difficult to bridge the gap between interest, compliance, and actionable strategies in sustainability.
Source: Make UK Executive Summary 2024, with PWC
Boost in Technology Investment
Over half of the companies (52%) increased their investment in supply chain technology over the last year, reflecting a growing recognition of the role technology plays in overcoming logistical challenges.
Source: Executive Supply Chain Survey 2023 by Blue Yonder
Top Supply Chain Challenge
Inflationary price hikes as a major concern for 53% of supply chain leaders, highlighting economic pressures and the necessity for optimal financial management of the supply chain.
Source: MHI Annual Industry Report 2024, with Deloitte
External Business Environment
Nearly a third (31%) of manufacturers perceive the UK as increasingly competitive against major European economies like Germany and France, indicating a positive shift in the international competitiveness of the UK manufacturing sector.
Source: Make UK Executive Summary 2024, with PWC
Investment in Sustainability Measures
Over two-thirds (68%) of surveyed executives plan to increase their investment in sustainability within the next two years. This statistic highlights a significant shift towards environmentally responsible supply chain practices, emphasising the importance of integrating ESG goals to meet both regulatory requirements and consumer expectations.
Source: KPMG Future of Supply Chain Report 2023
Future Growth and Exporting
Over a quarter of UK manufacturers (27%) are ready to tap into new international markets, showing a proactive approach to diversification and global market expansion.
Source: Make UK Executive Summary 2024, with PWC
Concerns Over Rising Costs
The impact of inflation is a major concern for 53% of supply chain managers, stressing the importance of proactive cost management to maintain profitability and operational efficiency.
Source: MHI Annual Industry Report 2024, with Deloitte
Barriers to Digital Adoption
Despite the progress, 48% of businesses cited cost as the primary barrier to further digital adoption. This reflects ongoing challenges that companies face in accessing the financial resources necessary for implementing advanced digital solutions.
Source: Make UK Demystifying Digitalisation Report 2023
Labour Strategies
Facing labour shortages, 87% of companies have made changes to attract and retain employees, including more competitive pay scales (51%) and more flexible scheduling options (40%).
Source: Executive Supply Chain Survey 2023 by Blue Yonder
Collaboration Between Humans and AI
Emphasising human-AI collaboration, 45% of organisations report using technology to enhance human decision-making capabilities, reflecting a shift towards a more integrated approach in workforce management within supply chains.
Source: MHI Annual Industry Report 2024, with Deloitte
Influence of Government Policy on Investment
48% of businesses report holding back investments (including in their supply chain and logistics) until they have policy certainty, underlining the importance of stable government policies in fostering business investment decisions.
Source: Make UK Executive Summary 2024, with PWC
Impact of AI on Supply Chain Employment
Despite concerns about job displacement, the report finds that 60% of supply chain leaders believe AI will create more jobs than it replaces, emphasising the role of this technology in generating new employment opportunities through enhanced supply chain functions.
Source: KPMG Future of Supply Chain Report 2023
Technological Investments for Future Competitiveness
Half of the manufacturers expect increased productivity over the next year due to digital technology investments, reinforcing the strategic importance of technology in driving future competitiveness and efficiency.
Source: Make UK Executive Summary 2024, with PWC
R&D Investment as a Growth Driver
Over half of the manufacturers surveyed (51%) identified investing in research and development as the most likely avenue for growth in the coming year, highlighting R&D as a priority even in times of low market demand.
Source: Make UK Beyond Ambition: Advanced Manufacturing Report 2024
Optimism Despite Economic Challenges
Business confidence in the manufacturing sector remains positive, showcasing resilience despite persistent economic headwinds such as high energy costs and supply chain disruptions. The report notes this optimism has persisted for 15 consecutive quarters, underscoring a robust sentiment in the face of adversity.
Source: Make UK Quarter 1 Report, 2024
Rapid Integration of Advanced Technologies
73% of supply chain leaders now view digital technology adoption as essential for maintaining competitive advantage. This strong majority underscores the critical role of emerging technologies, such as AI and machine learning, in transforming traditional supply chains into more efficient, responsive, and intelligent systems.
Source: KPMG Future of Supply Chain Report 2023
Training and Support for Suppliers
To foster compliance with ESG standards, 24% of firms offer training support to their suppliers, promoting a collaborative approach to sustainability.
Source: Make UK / Lloyds Bank ESG in UK Manufacturing 2023
Role of Data Analytics
Approximately 63% of organisations are now utilising data analytics to inform business decisions, showcasing the growing reliance on data-driven insights to guide strategic initiatives and enhance market responsiveness.
Source: Make UK Demystifying Digitalisation Report 2023
Enhancement of Supply Chain Visibility
A significant 63% of supply chain executives report an increase in investments towards enhancing supply chain visibility. This trend is driven by the need to better monitor and manage increasingly complex global supply chains.
Source: KPMG Future of Supply Chain Report 2023
Strategic ESG Expansion
Looking into the near future, 61% of manufacturers anticipate expanding their ESG efforts in the next two years, suggesting a proactive stance towards sustainability amidst growing regulatory and societal pressures.
Source: Make UK / Lloyds Bank ESG in UK Manufacturing 2023
Focus on Cybersecurity
52% of supply chain leaders identify cybersecurity as a top priority. This reflects an acute awareness of the increased risks associated with more interconnected and technologically advanced supply chain networks.
Source: KPMG Future of Supply Chain Report 2023
Financial Returns from ESG
While only a small proportion of firms have currently realised a financial return from ESG strategies, a promising 54% expect to see financial benefits in the long run, underscoring the perceived value of sustainable practices over time.
Source: Make UK / Lloyds Bank ESG in UK Manufacturing 2023
Uptake of Blockchain Technology
41% of survey participants are actively exploring or have implemented blockchain technology to improve transparency and traceability within their supply chains. This highlights the growing interest in distributed ledger technologies as a means to secure and streamline supply operations, as well as the need for provenance and traceability.
Source: KPMG Future of Supply Chain Report 2023
Digital Transformation in SMEs
65% of small and medium enterprises (SMEs) have adopted at least one form of digital technology in their operations. This statistic highlights a significant shift towards digitalisation, as SMEs recognise the necessity to enhance efficiency and competitiveness in a digital-first business landscape.
Source: Make UK Demystifying Digitalisation Report 2023
Focus on Customisation and Customer Experience
55% of respondents are prioritising investments in technologies that enable greater customisation and improved customer experience. This focus indicates that competitive differentiation increasingly relies on tailoring supply chain operations to meet specific customer needs more effectively.
Source: KPMG Future of Supply Chain Report 2023
Integration of AI in Business Processes
40% of companies reported integrating artificial intelligence (AI) into their business processes. This integration is primarily focused on automating routine tasks and analysing large data sets to derive insights, which can drive innovation and efficiency.
Source: Make UK Demystifying Digitalisation Report 2023
Strategic Shifts Due to Geopolitical Factors
Approximately 54% of respondents acknowledge that geopolitical tensions have forced them to reconsider their supply chain strategies. This trend highlights the impact of international relations on supply chain decisions, pushing companies to adapt to a rapidly changing global landscape.
Source: KPMG Future of Supply Chain Report 2023
Sustainability Efforts
A significant 84% of companies have increased or maintained their sustainability efforts, with 43% planning to further increase their sustainability initiatives particularly in upstream operations.
Source: Executive Supply Chain Survey 2023 by Blue Yonder
Strategic Shifts Due to Geopolitical Factors
Around 54% of respondents suggest that geopolitical tensions have forced them to reconsider their supply chain strategies. As a trend it highlights the impact of international relations on supply chain decisions, pushing companies to adapt to a rapidly changing global landscape.
Source: KPMG Future of Supply Chain Report 2023
Sustainability through Digitalisation
A notable 47% of respondents see digitalisation as a key enabler of their sustainability goals. This perspective reflects the increasing recognition of digital tools' ability to support more sustainable business practices, such as reducing resource use and optimising supply chains.
Source: Make UK Demystifying Digitalisation Report 2023
AI and ML Utilisation
A robust 78% of respondents are already leveraging AI and ML in their supply chains, with applications spanning inventory and network optimisation (33%), warehouse resource management (29%), and supply chain risk management (26%).
Source: Executive Supply Chain Survey 2023 by Blue Yonder
