Manufacturers worldwide are experiencing significant financial setbacks, losing up to 7.5% of their annual revenue due to inefficiencies linked to closed, hardware-centric industrial automation systems, as per a Schneider Electric report. This highlights a major challenge in modern manufacturing operations.
The study reveals that mid-sized manufacturers lose an average of $11.28 million yearly because of downtime, poor data visibility, and interoperability problems. Larger companies face losses of approximately $45 million annually, while smaller ones report losing around $2.87 million each year, underscoring the widespread impact of these inefficiencies.
Legacy systems are identified as a key contributor to increased complexity, reduced operational flexibility, and higher costs. Schneider Electric advocates for open automation as a solution to enhance data flow, reduce integration challenges, and foster innovation, ultimately improving manufacturers’ competitive edge in a dynamic market.