Manufacturers on the lean and IT path are winning in recession, says EEF
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British manufacturers that invested in IT and lean solutions when times were good are now in better shape as the recession deepens, according to a survey on productivity published today by EEF, the manufacturers’ organisation and manufacturing ERP solutions giant Infor.
Over the last two years more than half the companies surveyed had increased their investment in IT, with the aim of underpinning better overall innovation performance and improving manufacturing operations.
Also, more than 60% of manufacturers claim recent investments in lean initiatives to reduce waste, improve the supply chain, reduce delivery times and focus on continuous improvement, have achieved their objectives, while a further 11% say they have exceeded them.
Top of the investment priority list was IT to improve planning operations (63%), followed by better reporting and analysis (59%) and investment to support new product development (50%).
EEF chief economist, Steve Radley says: “The use of lean and IT to support companies’ efforts to improve productivity are clearly bearing fruit. Ongoing investment in new technology solutions and manufacturing processes will leave companies in a stronger position to face the current economic downturn.”
Infor business consulting director Phil Burgess adds: “The benefits of lean have long been recognised, and it is no surprise that the research highlights that rewards are greatest for those companies that implement lean across the whole business.
“However, it is important to keep in mind that, as we enter a period of negative growth and squeezed budgets, we are likely to see more examples of manufacturers making smaller, incremental investments in IT, the impact of which should not be underestimated.”
