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More manufacturers are incorporating technology, automation and robotics into their operations, and it looks like artificial intelligence (AI) is one advanced option that’s producing positive returns for the companies that are using it.
In fact, 70% of manufacturing CEOs say that AI is delivering a “strong ROI” for their operations, according to the latest American Manufacturing Resilience quarterly survey from Forbes and Xometry.
The poll tracks CEO and decision-maker sentiment at more than 150 national companies and reveals that those CEOs are deploying AI in multiple areas across their organizations. Some of the key findings from the new survey include:
- The overwhelming majority (76%) said they are deploying AI in supply chain management, followed by procurement (71%), quality control (47%) and automation (37%).
- Nearly all CEOs surveyed said AI will play a role in their company in the next one to two years.
- Those CEOs who have yet to see a return on their investment in AI are unanimous in their confidence that AI will deliver much-needed financial, workflow and other benefits in the near future.
- Nearly all CEOs surveyed said AI will play a role in their company in the next one to two years.
- ·And those CEOs who have yet to see a return on their investment in AI are unanimous in their confidence that AI will deliver much-needed financial, workflow and other benefits in the near future.
AI and Reshoring Go Hand-in-Hand
In their report, Forbes and Xometry say the rise in AI adoption coincides with continued accelerating reshoring efforts. Three-quarters (76%) of CEOs have successfully reshored some or all of their overseas facilities or are in the process of doing so. That figure rose from the 48% of CEOs in the third quarter of 2023 who said they are in the process of reshoring and up from 35% in the second quarter. Eighty-three percent of CEOs say the health of American manufacturing depends on reshoring. “Our latest quarterly survey shows us that AI and reshoring go hand-in-hand,” said Xometry’s CEO Randy Altschuler, in a press release.
“As reshoring continues to accelerate, CEOs are using AI to create locally resilient supply chains, simplify procurement and streamline their operations,” he continued. “This reinforces the fact that American manufacturing increasingly is the new high-tech industry, requiring sophisticated tools and talent as companies look to bolster industry here at home.”
Cautiously Optimistic About the Future
Despite the current geopolitical, inflationary and other threats, CEOs remain optimistic, according to the survey. Nearly three-fourths (70%) said they are on track to beat last year’s sales, and nearly two-thirds (65%) said the future remains bright.
The executives surveyed remain concerned about “black swan” events like international conflict, banking instability and unforeseen events like global pandemics. Inflation remains persistent, as well: Ninety percent of CEOs say their companies are “likely to raise prices again” before the end of the year—on top of the 80% who have already taken that step this year.
