A new study by software provider Forterro has highlighted the significant financial impact of ERP system downtime on UK mid-market manufacturers. The research revealed that, on average, these businesses could lose a staggering £41,888.30 per day when their ERP systems are offline.
The study also underscored the potential for widespread disruption, with 53% of respondents expecting decreased staff productivity and 38% anticipating reputational damage as a result of ERP outages.
In response to these challenges and the increasing demand for scalability, high availability, and robust data security, 72% of UK manufacturers expressed a preference for cloud-based or hybrid ERP solutions.
While ERP systems have become a valuable asset for mid-market manufacturers, offering benefits such as increased efficiency, real-time data, and standardized processes, the study also highlighted the need to embrace emerging technologies. 68% of respondents recognized the untapped potential of cloud solutions, and 54% acknowledged that their limited cloud usage was hindering the adoption of advanced technologies like AI and IoT.
The study further revealed that the top challenges facing UK mid-market manufacturers include global economic and political uncertainty, talent retention and acquisition, supply chain disruptions, and cybersecurity threats. With cyberattacks increasingly targeting the manufacturing sector, 40% of respondents identified security as their primary concern for the future.
David Coste, President, North & Western Europe, Forterro, commented: “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. 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.
“Manufacturing can be a complex and challenging sector, and businesses need to do all they can to protect themselves now and in the future. 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.”
Image source: Forterro
