The annual report released by marketing agencies Copperberg and Valtech sheds light on the resilience and adaptability of B2B industry leaders amidst economic uncertainty. Their Voice of Digital Leaders in Manufacturing report, reveals a notable shift in focus towards digital innovation and customer-centricity, particularly in the aftermarket sector, despite ongoing market volatility and talent shortages.
According to this global research report, based on insights gathered from 100 forward-thinking executives worldwide, the most significant digital growth in the manufacturing industry in 2024 is anticipated in the aftermarket market segment. Manufacturers are indeed expected to channel their digital efforts and investments toward existing customers rather than acquiring new ones.
In a press release, Mascha Tamarinof, Global Vertical Lead, B2B at Valtech, said:
“In today’s economic and industrial landscape, where competition is fierce and servitization is on the rise, it’s not surprising that many manufacturers see tremendous opportunities in growing their business within their existing customer base. Our study reveals that while digital sales of new products and equipment represent 16% of total revenue, digital sales in the aftermarket reach 26% of total sales. This shift in priorities marks a new era for the industry, where organizational change becomes a crucial business objective to foster new business models and value-added services.”
Here are the key takeaways from the survey:
E-commerce
The use of e-commerce for aftermarket services has more than doubled, rising from 7% last year to 15% this year.
Over 75% of respondents identify e-commerce as the most promising channel for revenue growth.
Customer Portals
Investments in customer portals have surged. Around 66% of organizations plan to invest in this channel this year, up from 50% last year.
Data collection and analysis remain a top priority. 39% of organizations emphasize their critical role in customer portals and online stores.
Digital Maturity
As more B2B manufacturing organizations express interest in the aftermarket market, the survey has highlighted improvements in digital maturity: 30% of respondents consider themselves ahead of their competitors, compared to 16% in last year’s survey.
Challenges
The report shows that digital leaders in the manufacturing industry are increasingly aware of the potential business opportunities offered by aftermarket channels. However, respondents have highlighted several challenges in seizing these opportunities:
51% are concerned that rising operating costs may pose a threat to their digital success in the new year.
Concerns about new market entrants have increased by 23% compared to last year.
The main reasons for slow or unsuccessful internal adoption are reluctance to change digital tools (49%), lack of interdepartmental collaboration (46%), and lack of local ownership of digital tools (46%).