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IT and Telecom Spending Trends - U.S. Manufacturing Sector
Frost & Sullivan, Dec 2004
New Integrated Systems Required to Improve Efficiency within Manufacturing Companies
It is crucial for manufacturing enterprises to upgrade their processes to enhance operational efficiency and cost management. This requirement is likely to be greatly eased by advancements in technology that enable manufacturers to integrate their production, administration, factory floor, and information systems. Moreover, this move is projected to necessitate IT consulting and management for manufacturing enterprises with retail and distribution centers. It could also affect IT staffing within the production unit, since low skill levels can have adverse effects on the cost-effectiveness of products. IT/Telecom providers have to build systems to bring together more departments and technologies.
This Frost & Sullivan research service provides an overview of the IT and telecom spending trends within the U.S. manufacturing sector to provide vendors with valuable insights to increase their foothold and penetration opportunities within this sector. Frost & Sullivan has identified industry challenges, market drivers and restraints, competitive landscape, current and forecast spending by type of service, key market trends, and conclusions for service providers within the IT/telecom industry.
Wireless/Wireline Technology Holds Immense Potential to Substantially Improve Business Strategies of Manufacturing Enterprises
IT/Telecom service providers have to offer an integrated solution including wireless and wireline services and products so that customers can employ a single system for administration, and distribution. This solution will be even more useful if it can integrate with sales, customer service, and logistics.
Within the telecom sector, manufacturers are anticipated to increase spending on wireless IT/telecom capabilities because of the greater ease of use and productivity caused by complete mobility within a factory setting, says the analyst of this research. Internet protocol (IP) technology continues to be cost-effective, as it brings telecom and IT products into closer integration, which will, in turn, help enhance the investment by manufacturers in telecom and IT hardware and services.
Manufacturers’ Need to Become More Productive in a Fragile Economy Augurs Well for the IT/Telecom Providers
The manufacturing sector has flourished for three years straight despite the instability of the current economic market. This growth has provided manufacturing enterprises with the capability and funding to upgrade their telecom and data networks. The companies are likely to assess the communication capabilities of the Internet to improve business efficiency with their suppliers. The primary factors that will be evaluated are speed, reliability, and data capacity.
Investment is likely to be funneled into the Internet (developing and supporting Internet communication) as it continues to grow rapidly and becomes a more important avenue for communications within the manufacturing sector, notes the analyst. Within this development, security and speed are expected to drive spending.
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