Let’s get digital: What has the manufacturing industry learned from the COVID-19 crisis?

digital manufacturing

Will Lovatt, General Manager at PROS discusses the lessons the manufacturing industry has learned from COVID-19 pandemic.

It goes without saying that COVID-19 has had a significant impact on business in recent months. The virus has provoked change (good or bad) across every sector in one way or the other. During this time, we have seen companies respond to the outbreak in different ways and what has become increasingly clear, is that some sectors and companies were better prepared to deal with those changes than others.

What is the common thread that runs through all the businesses who have responded best to the COVID-19 outbreak? The ability to meet customer demands through digital selling. The immediate solution to try and stop the spread of the virus was to close down places of work and points of sale in non-essential businesses. Subsequently, the easiest way for customers to buy from a brand was online. And if businesses weren’t prepared for that fact, then naturally they were going to be left behind by competitors.

With that in mind, what did these societal changes mean for the manufacturing industry and what has the sector learned from the initial wave of the virus?

Benchmarking the industry


While industries like manufacturing are often classified as ‘traditional’ this is not to say they are opposed to deploying technology. The manufacturing industry has been an early adopter of 5G, artificial intelligence (AI) and machine learning (ML) on the factory floor, and across the supply chain, to connect, automate and streamline where possible. That willingness, however, to digitalise and innovate has in many cases been limited to internal, production processes rather than customer-facing and selling initiatives.

What we have seen from B2B2C businesses, retailers in particular, who have reacted well to the challenges of COVID19 is an ability to engage the customer where they want to be sold to. There will have been a number of high-street retailers doing a good trade pre-COVID-19 at a time when customers were happy to go in-store as part of their shopping experience. But when that was no longer feasible, or desireable these same customers were forced to shop online – and if they could not buy through that channel at their preferred store – they shopped somewhere else. The importance of having a strong digital offering has been highlighted by COVID-19 and this learning has to influence and accelerate digital transformation in the industries that need it most.

Almost three-quarters of UK manufacturers are preparing to cut jobs in the next six months. A worrying trend and one that shows the industry’s inability to generate sufficient revenue when traditional revenue streams are compromised. Where businesses in other sectors have been able to pivot and direct customers online, manufacturers, in many cases, have not.

Bottlenecks for manufacturing success


Manufacturing body, Make UK has warned that the UK manufacturing industry will not recover from the effects of COVID-19 until 2022 – so how did we get here? Social distancing has made day-to-day operations difficult for a number of industries but manufacturing has been hit particularly hard. The idea of working from home is not an option when your job is interacting directly with expensive assets on the factory floor. With physical segregation, zoning and staggered shifts to contend with, productivity within manufacturing plants is bound to suffer and this applies to distribution and warehouse operations, too.

Putting sales aside for one moment, the ability to produce goods in the same way, as usual, has been hampered. This leaves manufacturers in the unenviable position of having to supply unpredictable demand all while being hampered on the production line. The result of this is, if manufacturers are unable to sell effectively through digital channels or are unable to capture online demand, then they are losing significant sales – which will cost them financially. Implementing a process whereby they utilise all available customer and competitor data to assess the new reality and adjust pricing to remain competitive and profitable could be hugely beneficial in influencing the supply and demand balance. In a moment where data is sparse the ability to collect and interpret every bit of information is critical.

Adapting to current circumstances  


The good news for the sector is that there are examples of manufacturers who have been agile enough to adapt and sell through multiple channels to great success. Before the onset of COVID-19, Saint Gobain processed approximately 10 percent of their orders online. Now, over 80 percent of their orders go through their online platform.

Like Saint Gobain, manufacturers that invest in a digital platform to process market data quickly to adjust to any new reality are in the best position to offer a personalised yet profitable quote to customers. Having the capability to sell to customers through multiple channels has meant that manufacturing businesses can adapt rapidly to changing scenarios and while protecting brand reputation, maintain healthy and profitable sales.

2020 has been a challenging time for manufacturers but the industry has a great opportunity to bounce back in the second half, provided manufacturers put a digital selling strategy in place with appropriate controls to benefit from online demand. The important next step for these companies is to embrace technology away from the factory floor so that they can benefit from their adaptable manufacturing teams’ work. This is a rapidly changing market, and businesses need to listen to their customers and adapt accordingly.


Will Lovatt

Will joined PROS in January 2019, leading the B2B EMEA sales business. Prior to PROS he led and grew sales organisations in supply chain, manufacturing, publishing, defence, and the public sector. His experience spans three decades, including working at IBM and Peoplesoft.

Choose an AI solution to transform beyond technology

Kit Cox • 09th December 2024

The first step is knowing exactly what your business wants to achieve with AI; think faster, smarter and more efficient. Once you know what you are working towards, you can start looking for a solution that can help you make it a reality. AI integration can feel like a daunting task at the beginning, so...

A Roadmap to Security and Privacy Compliance

John Lynch Director of Kiteworks • 04th December 2024

Only by understanding the current regulatory environment and implementing robust data protection measures, can organisations enhance their security posture, ensure compliance, and build resilience against the latest cyber threats. This article provides a comprehensive roadmap of how to do it.

Data-Sharing Done Right: Finding the Best Business Approach

Bart Koek • 20th November 2024

To ensure data is not only available, but also accessible to those that need it, businesses recognise that it is vital to focus on collecting, sorting and governing all the data in their organisation. But what happens when data also needs to be accessed and shared across the business? That is where organisations discover a...

Nova: The Ultimate AI-Powered Martech Solution for Boosting Sales, Marketing...

Erin Lanahan • 19th November 2024

Discover how Nova, the AI-powered engine behind Launched, revolutionises Martech by automating sales and marketing tasks, enhancing personalisation, and delivering unmatched ROI. With advanced intent data integration, revenue attribution, and real-time insights, Nova empowers businesses to scale, streamline operations, and outperform competitors like 6Sense and 11x.ai. Experience the future of Martech with Nova’s transformative AI...

How E-commerce Marketers Can Win Black Friday

Sue Azari • 11th November 2024

As new global eCommerce players expand their influence across both European and US markets, traditional brands are navigating a rapidly shifting landscape. These fast-growing Asian platforms have gained traction by offering ultra-low prices, rapid product turnarounds, heavy investment in paid user acquisition, and leveraging viral social media trends to create demand almost in real-time. This...

Why microgrids are big news

Craig Tropea • 31st October 2024

As the world continues its march towards a greener future, businesses, communities, and individuals alike are all increasingly turning towards renewable energy sources to power their operations. What is most interesting, though, is how many of them are taking the pro-active position of researching, selecting, and implementing their preferred solutions without the assistance of traditional...

Is automation the silver bullet for customer retention?

Carter Busse • 22nd October 2024

CX innovation has accelerated rapidly since 2020, as business and consumer expectations evolved dramatically during the Covid-19 pandemic. Now, finding the best way to engage and respond to customers has become a top business priority and a key business challenge. Not only do customers expect the highest standard, but companies are prioritising superb CX to...