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Experiencing a tight labor market and macroeconomic supply chain issues, manufacturers are looking towards recent technological advancements to achieve better efficiency. With this, manufacturing executives need to be ready to bridge the digital information gap and prepare front-line workers to use these new technologies, so information needs to flow effortlessly across the plant floor to reduce data siloes. The ability of manufacturers today to use tech solutions, ranging from software to tech-enabled services to robotics, to drive efficiencies and reduce operating costs is an important key to company development. Broadly speaking, most software designed for manufacturers creates substantial ROI for their users, while enhancing productivity. The industry has a massive TAM, with hundreds of smaller companies ready to disrupt the space. That said, the industry is at the early stages of the adoption cycle, and many of the very large public strategic acquirers will be patient to enter the sector until the target companies get significantly larger in scale.

AGC Insights - Manufacturing Software (2024)

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