Manufacturers Embrace 5G Connectivity To Revolutionize Operations

According to new research titled "Connectivity – A Critical Differentiator for Digital Transformation," conducted by Manufacturers Alliance Foundation and Verizon Business, the manufacturing sector is undergoing a significant shift. Companies are increasingly adopting 5G connectivity to advance their digital transformation efforts. Central to this movement is the rise of private 5G networks, which offer manufacturers greater control and customization over their connectivity infrastructure.

The study surveyed 172 U.S.-based mid to large-cap manufacturing companies on their adoption of various connectivity options, best practices, and use cases. The findings reveal that 16% of manufacturers plan to transition to 4G LTE or 5G within the next three years. This marks an eight-fold increase from the current 2% that primarily rely on cellular connectivity.

Stephen Gold, President and CEO at Manufacturers Alliance, stated, "Successful manufacturers are capitalizing on digital transformation to push forward. Connectivity emerges as a cornerstone of their success." He added that embracing technology like 5G can lead to enhanced operational efficiency, heightened competitiveness, and sustained growth.

About half of the surveyed manufacturers are investing in wireless connectivity with Industrial Internet of Things (IIoT). Additionally, 45% expect that 5G will have the most significant impact on manufacturing connectivity in the next three to five years, surpassing all other wireless technologies. Most manufacturers continue to deploy a mix of networks, including wired, Wi-Fi, and 5G, while making overdue technology investments to strengthen their digital infrastructure.

Respondents also highlighted the need for staffing with an understanding of the capabilities and requirements of the latest connectivity options in IT and operations. Mike Weller, Practice Leader for Manufacturing, Energy, and Utilities at Verizon Business, noted, "Manufacturers are increasingly aware of how fast, reliable connectivity can deliver improved functionality and efficiencies. As their knowledge expands, so do the envisioned opportunities and use cases."

The report indicates a clear desire among manufacturers to develop expertise with 5G in their operations. This is aimed at extracting more value for both the business and the customer while keeping up with the ongoing shift towards digital solutions.

For deeper insights and access to the comprehensive research report, visit Manufacturers Alliance Foundation.

About Manufacturers Alliance Foundation

The Manufacturers Alliance Foundation is a 501(c)(3) partner of Manufacturers Alliance. It provides educational opportunities for the manufacturing community through insights, events, and tools for critical business decisions. The Foundation focuses on talent, technology, digital transformation, and competitiveness.

About Verizon Business

Verizon Communications was formed in 2000 and is a leading provider of technology and communications services globally. Headquartered in New York City with a worldwide presence, Verizon generated revenues of $134 billion in 2023. The company offers voice, data, and video services on its award-winning networks and platforms.