Abstract
This study provides an overview of IT spending trends and forecasts in Western
Europe discrete manufacturing. Beginning with trends affecting IT demand in the
industry, the report explores major drivers and directions in IT adoption. On
the quantitative side, the focus is on spending in hardware, packaged software,
and IT services for the major discrete manufacturing sub-industries for Western
Europe in the 2005-2010 timeframe. Data is provided for the following
sub-markets: automotive, electronic/electrical/optical, aerospace, printing and
publishing, industrial machinery, wearing apparel, leather and leather
products, and other discrete.
"Western European discrete manufacturers' top priorities in the last few years
were mainly driven by cost-cutting initiatives and a few necessary updates to
existing IT systems. However, entering 2006, a more positive outlook is
prevalent. Manufacturing Insights foresees a significant increase in packaged
software opportunities, suggesting that discrete manufacturers will be looking
for new strategic applications that can drive innovation and competitive
advantage. IT operations outsourcing initiatives will be at the top of IT
agendas as well, suggesting that industry leaders will be looking at how to
increase the efficiency of existing applications and IT staff. Networking
equipment will demonstrate interesting spending patterns over the forecast
period, suggesting that the discrete manufacturing industry will catch up with
the implementation of wired, wireless, and Web applications," said
Pierfrancesco Manenti, research director, European Vertical Markets,
Manufacturing Insights. "However, a clear ROI continues to be the key driver in
IT spending, thus only IT suppliers that will be able to ensure returns on
investments coupled with an adequate support to the singular requirements of
the diverse manufacturing sub-industries will win."