Improved manufacturing workflows deliver real business results


Manufacturing insights from Oxford Economics

An industrial worker is using equipment in a factory.

Better Every Day: From precision to performance

Manufacturing has always depended on precision, but in today’s fast-paced environment, success now hinges on the seamless integration of efficiency, quality, and speed. A joint study with Oxford Economics shows that manufacturers embracing intelligent operations and modernizing workflows are achieving measurable gains in productivity, accuracy, and customer satisfaction. The study spotlights two critical areas of transformation: quality control and material handling.

The study shows that if the top 20 manufacturers in the Forbes Global 2000 list were to achieve meaningful improvements in their workflows, they could potentially see an average of $5 billion in higher revenue and $200 million in added profit per manufacturer. Workflow optimizations drove revenue growth and profit improvements of up to 2.4 percentage points over the last year1. The study spotlights two critical areas of transformation: quality control and material handling.

+2.4%

Workflow optimization drove revenue growth and profit improvements of up to 2.4 percentage points over the last year

Optimizing for operational excellence

Manufacturers are rethinking how work gets done. By honing quality control, workflows, and AI, they’re building intelligent operations that drive increased productivity. 

Business outcomes from optimizing manufacturing workflows over the past two years

+19%

increase in employee productivity

-19%

reduction in costs

Cepheid Logo on white background
Success Story

"In less than a year, our productivity savings skyrocketed—by over 1,000%"

- Tom Healy, Director, Logistics Technology and Projects, Cepheid

The blueprint for smarter manufacturing

By integrating intelligent operations and advanced technologies, these businesses are setting new standards for operational excellence, unlocking faster processes, increased productivity and higher-quality outputs—proving that operational excellence now pays off.

Better workflows, stronger outcomes

Percentage of manufacturers surveyed who have meaningfully improved the following workflows over the past two years:

58%

58%

Production and assembly line

56%

56%

Quality control and assurance

56%

56%

Supply chain coordination and inventory management

46%

46%

Maintenance and equipment management

31%

31%

Material movement and handling

58%

Production and assembly line

56%

Quality control and assurance

56%

Supply chain coordination and inventory management

46%

Maintenance and equipment management

31%

Material movement and handling

Success Story

"Our experience at the Van Dyke plant has fully proven to us that it can meet and even exceed our expectations."

- Al Ver, Ford Motor Company Vice President of Advanced and Manufacturing Engineering

Quality Control: Workflow improvements

Manufacturers that focused on improving quality control and assurance achieved impactful results, directly benefiting both their top and bottom lines. Over the past year, these companies reported, on average 2.4 percentage-points higher revenue and 1.4 percentage-points higher profitability.2

+1.4%

profitability through workflow improvements

+$3.4M

additional profit

Success Story

"Deep learning technology extends the field of image processing, in which conventional image processing yields inadequate results. Implementation of this new system has replaced objective visual processes that STIHL had in place. As a result, we anticipate great improvements in our efficiency, with the ability to perform new tasks, ensuring an overall improvement in the quality of our products."

- Alexander Fromm, Engineer for Automation Systems, STIHL Group


Material Handling: Workflow improvements

Improvements in material movement and handling is one of manufacturing's most underestimated opportunities. Our study linked improvements in these workflows could add more than $53M in added revenue3.  A return too significant to overlook.  

 

+1.8%

revenue growth from workflow improvement achievements

$53.8M

projected revenue uplift

Be Switchcraft logo on white background
Success Story

"We need to give our customers accurate deadlines as to when their switchboards will be ready, and we could not capture that in our previous systems. Monitoring the status of orders in real time as well as monitoring the manufacturing process and the efficiencies of it were key."

- Anthony Spadavecchia, BE Switchcraft

AI isn't optional

Manufacturers are leveraging AI to optimize workflows and achieve greater business success. By improving inventory management, reducing production inefficiencies, and automating processes like quality control and equipment monitoring, AI is driving operational efficiency, strengthening supply chain management, and driving profitability.

More than half of manufacturers are piloting or using AI in key workflows.

71%

Inventory optimization

59%

Product quality intelligence

57%

Cost optimization

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  1. The percentage point differences show the average gap in revenue growth between manufacturers that made meaningful improvements to workflows and those that did not, based on on the analysis of our survey."

  2. Manufacturers improving quality control saw, on average 2.4 percentage-points higher revenue growth and 1.4 percentage points higher profitability over the past year compared to those that did not make meaningful improvements.  For a typical manufacturer represented in our survey, this translates to a potential $3.4 million in higher profits.

  3. Manufacturers improving material handling saw, on average 1.8 percentage-points higher revenue growth over the past year compared to those that did not make meaningful improvements.  For a typical manufacturer represented in our survey, this translates to a potential $53.8 million uplift in revenue.

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