MANUFACTURING INDUSTRY SURVEY SHOWS BUSINESS LEADERS EMBRACING EQUIPMENT-AS-A-SERVICE TO IMPROVE OPERATIONAL RESILIENCY
Vast majority of manufacturing decision-makers currently offer or plan to develop EaaS business model
CHICAGO, AUGUST 3, 2022 - Manufacturing business leaders across the U.S. currently face a myriad of challenges creating a pronounced need to enhance business resiliency and improve customer intimacy - and they see the Equipment-as-a-Service business model as a solution to accomplish just that.
Equipment-as-a-Service (EaaS) is a value-add business model where an OEM rents equipment to end users instead of selling it outright in a one-time purchase. To better understand current sentiments toward EaaS within the manufacturing industry, global Industrial Internet of Things (IIoT) company relayr collaborated with research firm Forsa to survey 200 manufacturing business leaders across the United States. Questions posed to respondents sought to gauge insights on attitudes toward EaaS, including perceived value of EaaS business models, key factors driving adoption, and challenges and obstacles preventing successful implementations.
"Our research data shows that manufacturing leaders recognize Equipment-as-a-Service as a transformative business model to enhance operational resiliency against a rapidly evolving global business landscape," said Jessica Poliner, CEO of relayr. "Not only can EaaS strengthen an organization's bottom line, it provides greater opportunities to engage with customers on a more consistent basis - leading to higher levels of customer intimacy and relationship-building that are critical for success in today's manufacturing business landscape."
Based on survey feedback from OEMs, 76% of respondents either currently offer EaaS or harbor plans to develop the model as an option for customers - with 81% of those wanting to begin exploring the shift within the next year. Of those that have already implemented an EaaS model, 78% credit it with breeding significant revenue growth for their business.
OEMs noted several factors driving adoption of EaaS, including the opportunity to build stronger customer relationships (38%), enabling data-driven improvements to machine function, capacity and operations (35%), and introducing more innovative pricing (33%).
To the end users of equipment, EaaS is deemed valuable to those eager to keep their equipment at the cutting edge of technology - with 32% of respondents crediting the model with helping them do so. Another 32% of users surveyed cited the opportunity for predictive maintenance as a primary benefit to EaaS, and 21% cited resiliency to crises as a top benefit.
While OEMs are having an easier time warming to the concept of EaaS, more education is needed across the value chain. Thirty-four percent of equipment users are unaware of EaaS, and 50% feel they need more information on its function and purpose - as well as what type of role OEMs take and how that relationship will take shape - before making any commitments.
This leaves OEMs with an important task: taking their own understanding of the value of EaaS - in which they are confident enough to have implemented the model - and articulating that value to their customers.
The survey also uncovered the primary concerns related to the implementation and adoption of EaaS. The top-cited concern for OEMs was the high degree of customization and complexity required (28%). For users, worries about disclosure of data content/data security were of primary importance (35%), while concerns about dependence on the provider of the EaaS model came in close behind at 34%.
To download the full research report, click here.
Relayr is the Industrial Internet of Things (IIoT) powerhouse delivering the most complete solutions for a risk-free digital transformation and supporting our customer on the journey to Equipment as a Service.
We enable industrial companies to shift from CAPEX to OPEX-based offerings by providing a combination of unique IIoT technology and solutions with powerful business services such as IoT Financial Services or bespoke transformation de-risking instruments - all from a single source.
With relayr, manufacturers, operators, and service companies for industrial equipment are empowered to implement fully interoperable Industrial IoT solutions guaranteed to enable their digital and Equipment as a Service transformation journey, regardless of their starting point.
To learn more about relayr, visit www.relayr.io.