Manufacturers are back to a slightly faster production and sales pace after a sluggish 2023.
Product makers also are putting digital commerce — and transformation — on a faster development track, according to data and analysis from the newly published 2024 Ecommerce in Manufacturing and Distribution Report from Digital Commerce 360.
Last year’s total manufacturing sales grew 3.6% to $6.829 trillion from $6.591 trillion in 2022, based on Digital Commerce 360 analysis using monthly data from the U.S. Department of Commerce.
What manufacturers’ sales outlooks mean for 2024
2024 is off to a similarly slow start. In January, total manufacturing sales dropped by 1.6% to $572.32 billion, from $581.72 billion in January 2023.
But a recent survey of 266 manufacturers on the outlook for 2024, from the National Association of Manufacturers, reveals the majority (66%) of respondents expect to grow sales by around 2% and, in 2025, by 3%.
Manufacturing companies’ sales will remain sluggish as they battle a range of issues from geopolitical turmoil, slow global economic growth and cost pressures. In addition, they may grapple with a recession and labor issues, among other challenges, says the National Association of Manufacturers.
Assuming total sales growth will be slow to rebound in 2024, there are still signs of hope. The two areas where manufacturers will pick up the pace for growth and development are digital commerce and transformation.
Consider these metrics.
- A recent survey of nearly 100 manufacturers found that 66% of them plan to invest in customer portals this year, up from 50% last year, according to the report, The Voice of Digital Leaders in Manufacturing 2024, by digital commerce technology and services firm Valtech and Copperberg, which develops content for manufacturers’ digital and offline platforms.
- Manufacturers are moving ahead in the ecommerce maturity curve, with 30% of respondents ranking themselves ahead of their competitors, up from 16% in 2022, says Copperberg.
Manufacturers plans for AI
Manufacturers have big plans in store for artificial intelligence. 70% of manufacturers plan to invest in AI for operations compared with sales (60%), robotic process automation (48%), financial reporting (47%), and front- and back-office systems (36%).
Check out the 2024 Ecommerce in Manufacturing and Distribution Report for more data and analysis on the impact AI is having on all aspects of digital B2B commerce and transformation.
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Sign up for a complimentary subscription to Digital Commerce 360 B2B News, published 4x/week. It covers technology and business trends in the growing B2B ecommerce industry. Contact Mark Brohan, senior vice president of B2B and Market Research, at mark@digitalcommerce360.com. Follow him on Twitter @markbrohan. Follow us on LinkedIn, Twitter, Facebook and YouTube.