State of Design and Make 2024: Spotlight on Digital Factories

State of Design and Make 2024: Spotlight on Digital Factories

State of Design and Make 2024: Spotlight on Digital Factories

A STATE OF DESIGN & MAKE SPECIAL EDITION

Spotlight on Digital Factories Summary of key findings

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Data and digitization are revolutionizing factories

At the exciting intersection of AI and automated processes, advanced machines and robots, and extended reality (XR) technologies, modern factories—often risk-averse—are making tremendous leaps toward a more efficient, more sustainable future.

The engine driving such rapid change is accessibility to data, and technology that helps translate mountains of disparate datasets into actionable insights that help organizations collaborate and innovate across the entire factory lifecycle.

Digitally mature organizations are reaping the benefits of digital transformation in their factories—41% of respondents to Autodesk’s 2024 State of Design & Make survey in the automotive, process manufacturing, building products, and industrial machinery industries say increased productivity is the top benefit of digitization and that, on average, digital investments have improved productivity by 62%.

To better plan, design, build, and operate their facilities; to reconfigure them more quickly; and to maximize the efficiency and productivity of every asset throughout the factory lifecycle, leaders need to plan for, and invest in, a digital future. Because digital transformation for factories is no longer optional—it’s essential.

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Top Insight

“ We’ve introduced a completely new design process to speed up workflows and achieve our targets. Digitalization in the automotive industry is vital, but we’ve found a good balance between full digitalization and maintaining the heritage of the company.”

—Dave Amantea, Chief Design Officer, Automobili Pininfarina, a luxury electric vehicle manufacturer

Design and manufacturing is outperforming expectations

80%

60%

40%

20%

0%

Percentage of businesses that outperformed corporate expectations

Survey question: How has your company or organization performed compared to corporate expectations in each of the last 3 years? In 2020, in 2021, in 2022. 5-point scale. Top two = above average performance.

of leaders and experts feel they are keeping up with the rate of change in their industry

93%

Industry-wide Automotive and other transportation Process

manufacturing Building products

and fabrication Industrial machinery

31% 2020

58% 2021

69% 2022

37%

51%

62%

32%

49%

61%

25%

41%

59%

29%

79%

85%

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Top Insight

“ The biggest challenge is the long-term support of automated systems. The more you automate, the more technical your resources need to be. This requires engineers who can troubleshoot PLC programming and electrical issues. Training people to be good troubleshooters and technically skilled in various areas is crucial.”

—Clint Allen, Senior Director of Design and Reliability Engineering, Sherwin Williams, a global leader in paints and coatings

“The biggest challenge is that the market is changing almost every day. If you want to stay on-trend, you need to make your processes faster and invest in helping your team be more efficient. It’s much more difficult than the last several years.”

—Jinchun Hu, General Manager, JAC Italy Design Center S.R.L, an automobile and commercial vehicle manufacturer

Data and tech advancements top list of challenges for factory industries

2

3

3

1

2

Survey question: What are the top 3 challenges your company or organization faces today? Select up to three.

Top 5 business challenges showing year-over-year change

Data automation/technological advancement/digitization

Cost control and cost management

Global economy and events

Product or service innovation

Attracting, training, and retaining talent

2

3

5

4

1 44%

39%

36%

33%

32%

31%

30%

30%

26%

26%

2023 2024

Product or service innovation

Data automation/technological advancement/digitization

Environmental sustainability

Attracting, training, and retaining talent

Cost control and cost management

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Top Insight

“ We’ve made good progress on our digital transformation journey. Business process mapping is already done and we are now strengthening the business system platforms. A key challenge will be how we change the culture of our customers—they are our partners in this digital system.”

—Cucu Juanda, Head of Business Systems and Automation, PT Sanggar Sarana Baja, an industrial machinery company

Factory leaders are all-in on tech investment

Survey question: How has your company or organization’s investment in the following changed over the past 3 years?

Strongly increased investments in technology

Strongly increased overall investments

Industry-wide

Automotive and other transportation

Process manufacturing

Building products and fabrication

Industrial machinery

11%

9%

12%

6%

15%

26%

20%

24%

16%

36%

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Top Insight

“ We’ve been on this digital transformation journey for many years. It’s really come to life over the past year and energized the business. It’s become a Trojan Horse for driving other changes because that vision has gotten so much clearer.”

—Dave Amantea, Chief Design Officer, Automobili Pininfarina, a luxury electric vehicle manufacturer

“ Mindset is the number one barrier to digital transformation. People want to do what they’re good at. We call it habitual resistance to something which they’re not familiar with.”

—Miro Lin, Chief Executive Officer of Machine Tool Business Group (Taichung), Fair Friend Group, a machine and equipment manufacturing firm

Digitally mature companies see greater business success

Top ranked response to survey question: Has your company or organization experienced any of the following benefits of digital transformation? Top ranked response to survey question: What are the barriers to digital transformation in your company or organization?

Top advantages of digital transformation

Top barriers of digital transformation

Improved productivity

Cost Time needed to invest in new tools

and ways of working

Lack of knowledge or technical skills

to implement digital solutions

Limited capabilities in the tools

currently available

Lack of coordination across my

organization

Reduced costs

Increased sustainability

Improved customer

satisfaction

Improved collaboration

Improved profitability

Better risk management

41%

38% 36% 35% 32% 30%

32% 31% 31% 30% 30% 30%

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Top Insight

“ There are challenges, but also opportunities. The best opportunity is AI. We can do more, even better, with less. For example, using the same resources as before, we can create three or four proposals at the same time instead of only one.”

—Jinchun Hu, General Manager, JAC Italy Design Center S.R.L, an automobile and commercial vehicle

“ In five years, I hope AI can help us reduce costs, improve productivity, and better forecast demand. It could also help us develop more efficient production schedules, reducing cross-contamination and increasing overall efficiency.”

—Clint Allen, Senior Director of Design and Reliability Engineering, Sherwin Williams, a global leader in paints and coatings

Leaders agree: AI is transformative and essential for the future

79% trust AI technologies for their industry

81% agree AI will enhance their industry

65% agree in 2-3 years AI will be essential across the board

81% agree AI will make the industry more creative

53% say they are approaching or have already achieved their goal of incorporating AI

35% of respondents say AI will destabilize their industry

Source: 2024 State of Design & Make report

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Top Insight

“ The most difficult thing in a company is hiring people with the right attitude. Skills, you can teach, but not attitude and mentality.”

—Dave Amantea, Chief Design Officer, Automobili Pininfarina, a luxury electric vehicle manufacturer

“ Organizations need to develop internal partnership programs and mentorship opportunities. Our plants with union labor benefit from apprenticeship programs that produce skilled workers. Whether through unions or internal programs, creating a pipeline for skilled trades is essential for future success.”

—Clint Allen, Senior Director of Design and Reliability Engineering, Sherwin Williams, a global leader in paints and coatings

Training and upskilling are essential for factories of the future

Survey question: What technical or digital skills do you believe your company or organization will be prioritizing when hiring over the next 3 years? Select all that apply.

Top skills of the future

Ability to implement / work with AI

Digital project management

Digital design skills

Software development / programming

Knowledge of data safety and security

43% 40% 40% 40% 38%

are implementing continuous learning

75% say upskilling is important

to their company

84% don’t have the skills or the resources to design

internal programs

39% say they are investing

training programs for digital skills

78%

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Top Insight

“ There is a tightness in the labor market. There’s a stack of engineering work to be done and there’s probably not enough engineers, especially ones with the expertise that you need. Attracting people to the field is a longer-term issue. How do we grow the talent pool and mentor people to develop into really great engineers? If we don’t solve this problem, then we’re always going to be in this position.”

—Dave Mackenzie, Managing Principal for Digital, Aurecon, a design, engineering, and advisory firm

Companies are taking a multipronged approach to filling gaps in their workforce

3 in 4 or 76%, say

digital maturity helps attract talent

3 in 4 or 76%, say

sustainability efforts attract and help retain talent

3 in 4 or 72%, say

say sustainability efforts impact job

satisfaction

1 in 4 or 37%, say

supplementing a skills gap was a use case for

AI at their company

Source: 2024 State of Design & Make report

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Factory leaders go all-in on sustainability

Survey question: What changes has your company or organization already made to be more sustainable? Select all that apply.

Sustainability actions taken by companies

97% of organizations are taking steps to improve sustainability Increased share of renewable energy sources used

Decreased waste from production and construction

Invested in more energy-efficient processes or machinery

Applied sustainable design principles

Used AI to be more sustainable

Used more recycled materials

37%

36%

36%

35%

34%

34% Survey question: How influential are the following groups in pressuring your company or organization to create and meet sustainability goals?

Top motivators of sustainability goals

84% customers

83% investors

79% employees

78% the next generation

77% the government

Top Insight

“ Sustainability is about environment, but also about talent. It’s about sustainable business models and providing well-being for employees. It’s about providing learning and equitable access to opportunity— everything from our business inclusion groups, all the way up to executive compensation being tied to DEI progress.”

—Kim Dabbs, Global VP, ESG and Social Innovation, Steelcase, a furniture manufacturer

“ Some of our clients from Europe and the United States started to remind us to reduce emissions, and sooner or later we will have to do it. So why not take the initiative to do it in advance?”

—Miro Lin, Chief Executive Officer of Machine Tool Business Group (Taichung), Fair Friend Group, a machine and equipment manufacturing firm

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Top Insight Sustainable factories are the future

61% of leaders and experts say sustainability is good for

short-term business

74% say that sustainability goals are no longer a nice to have, but a

requirement of modern business

86% of leaders and experts say sustainability is good for

long-term business

81% say sustainability initiatives

are a key part of their company’s business growth strategy

for the next three years

Source: 2024 State of Design & Make report

“ We focus on Brownfield expansions and reducing clean-out and wash water generation to improve productivity, which indirectly drives sustainability. Some of our sites are zero to landfill, and we’re working on reducing compressed air usage by trialing motorized air-operated double diaphragm pumps.”

—Clint Allen, Senior Director of Design and Reliability Engineering, Sherwin Williams, a global leader in paints and coatings

“ We’ve embedded sustainability into everything that we do. It’s not just a sustainability team—we had a cross- functional team that built a sustainable design framework and now everything that we produce goes through that framework. This is critical to changing the entire ecosystem and not just pockets of the ecosystem.”

—Kim Dabbs, Global VP, ESG and Social Innovation, Steelcase, a furniture manufacturer

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Learn more about digital factory

The full State of Design & Make: Spotlight on Digital Factory will publish in January 2025.

About the Spotlight on Digital Factories report

Data for the Spotlight on Digital Factories report was compiled from the Autodesk 2024 State of Design & Make survey. This year’s survey is comprised of 5,398 industry leaders, futurists, and experts in architecture, engineering, construction, and operations; design and manufacturing; and media and entertainment from countries around the globe. More information about the 2024 State of Design & Make survey and report can be found here.

For the purposes of the Spotlight on Digital Factories report, we combined 2024 State of Design & Make survey data from the automotive, process manufacturing, building products, and industrial machinery subindustries, totaling 1,100 respondents.

The Spotlight on Digital Factories report also includes qualitative interviews from business leaders and experts across the automotive, process manufacturing, building products, and industrial machinery industries.

About Autodesk

Autodesk is changing how the world is designed and made. Its technology spans architecture, engineering, construction, product design, manufacturing, and media and entertainment, empowering innovators everywhere to solve challenges big and small. From greener buildings to smarter products to more mesmerizing blockbusters, Autodesk software helps customers design and make a better world for all. For more information, visit autodesk.com or follow @autodesk on social media.

Contact Autodesk at state.of.design.and.make@autodesk.com about this research report or to sign up to participate to future research programs.

The information provided in this report is for general informational purposes only and strictly for the convenience of our customers. Autodesk Inc. does not endorse or warrant the accuracy or completeness of any information, text, graphic, links, or other items contained within the report.

Autodesk Inc. does not guarantee that you will achieve any specific outcomes or results if you follow any advice in the report.

© 2024 Autodesk Inc. All rights reserved.


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