Spring is in the air, and so is news of steady growth in the US manufacturing sector.
We’ve recently seen reports that forecast US manufacturers bringing production back to the United States. These so-called “reshoring” trends stem from rising costs in energy and offshore wages – making homeland production more economically feasible.
Growth has also been reported by the Institute for Supply Management. They recently announced that US manufacturing picked up in January to its highest level in nine months, as new orders and employment improved.
To top it off, the Association of Manufacturing Technology announced that orders among member companies are at their highest level in 13 years.
ERP Growth Follows
It is no surprise that this news comes on the heels of reports that ERP has grown into the single largest enterprise application. After all, ERP helps manufacturers manage growth and improve manufacturing business performance.
Forrester Research predicts dramatic growth in the global enterprise resource planning (ERP) market — expanding to $50.3 billion in 2015.
Researchers at the University of Greenwich in the Business Process Management Journal conclude, “ERP is now considered to be the price of entry for running a business.
And as we’ve noted in the past, Cloud or SaaS ERP is playing a key role today. IDC projects that enterprise cloud application revenues will reach $67.3 billion by 2016.
Big and Getting Bigger
Here’s a noteworthy fact. ERP is the single largest enterprise application software market. ERP system adoption is still growing, as ERP vendors craft even more powerful applications.
There are many reasons to enter into an ERP implementation: whether it’s standardizing on a common ERP platform, using ERP to support a business process reengineering, or putting into place business intelligence strategies as supported by ERP.
To make sense of it all, look to our ERP consulting team to help manage this exciting growth in the years ahead.