After a record-setting 2021, 2022 has had some pullback in volume. That being said, companies with solid growth and profitability continue to garner strong valuations. Despite the overall slowdown, manufacturing software continues to be of interest to strategics that have not traditionally been in the space, as well as private equity firms that are interested in developing consolidated offerings for specific areas of the manufacturing industry.
Madison Park Group actively tracks the Manufacturing Software landscape and has observed several trends and developments:
- Manufacturing software providers are evaluating taking SaaS to the next level by offering pricing based on the number of parts manufactured
- Workplace flexibility and distributed workforces are driving the increased acceptance of cloud-based offerings by large-scale manufacturers, including those in the defense industry
- MES providers that monitor manufacturing facilities are gathering data that has value to suppliers and others in the manufacturing ecosystem, leading to new revenue streams
- Low-code/No-code application development is allowing companies to more easily leverage the knowledge of their workforce on the manufacturing floor