Research by IFS: 71% of Dutch companies in the manufacturing industry lagging behind in digital transformation

's-Hertogenbosch, February 26, 2025 – The manufacturing industry is at a significant turning point. Recent research by IFS shows that manufacturing companies are aware that digital transformation is essential for their survival, but they often get stuck due to 'choice stress' and miss opportunities. As a result, they risk losing their competitive advantage.

The research, conducted among 815 leaders in the global manufacturing industry, demonstrates that the sector recognizes the importance of technology for the survival of companies. Yet, less than ten percent of manufacturing companies succeed in positioning themselves successfully as 'digital leaders'. In the Netherlands, as many as 71 percent consider themselves laggards, compared to 65 percent worldwide. They indicate being stuck in the initial phase of digital transformation without concrete future plans.

The clock is ticking: digital transformation is indispensable for survival
The research shows that 89 percent of manufacturing companies in the Netherlands believe their company can only survive one to three years without any investment in technology. The message is clear: digital transformation is indispensable for the survival of companies in the manufacturing industry. The turbulent market, ongoing disruptions in supply chains, and the threat of climate change make the transformation even more necessary.

A quarter of manufacturing companies consider climate change their highest priority. Yet, the majority of companies (84%) lag behind in terms of a solid sustainability strategy and ESG initiatives. This lag is greater than the global average of 71 percent. Although four out of ten (42%) Dutch manufacturing companies are actively working on ESG initiatives, the gap between ambition and execution remains large.

'Choice stress' threatens the future of the sector
Today, the technology offering for companies is larger than ever. More than 80 percent of respondents worldwide consider all available technology options essential. This makes decision-making much more difficult, and the choice stress even greater. Additionally, within an organization, not everyone is aligned. While almost all C-suite executives (94%) see cloud computing as the most important technology for digital transformation, operational staff focus on digital twins (85%) and AI (84%). Vice presidents, on the other hand, consider IoT (81%) a priority. These differences in priority do not make the choice of technology easier.

Due to the abundance of choices and the inability to assess the priority of new technologies, digital laggards are falling further behind. At the same time, manufacturing companies face various other challenges. Dutch companies struggle with complying with laws and regulations (32%) and the complexity of the IT environment (29%). Without overcoming these challenges, manufacturing companies risk falling even further behind, endangering their survival.

Shaping the future
Despite the challenges, the Dutch manufacturing industry remains hopeful about the benefits of new technologies. When revising their supply chains, almost everyone (97%) applies geographical strategies to make the chain more resilient. Digital leaders use advanced methods such as scenario planning, while lagging companies still rely on isolated risk assessment tools.

Respondents also expect sustainability initiatives (ESG) to have a positive impact on their organization. ESG is no longer seen as an obligation but as an important factor for improvements in lead time, product quality, and new business models, such as the circular economy.

Guiding companies from choice stress to leadership
The manufacturing industry is in a decisive phase. Many companies see the urgency of digital transformation but remain stuck in indecision, waiting for proven results or the support of other parties. "The longer these companies wait, the further they fall behind," warns Maggie Slowik, Industry Director Manufacturing at IFS. "In today's uncertain market, resilience and digital maturity are not just advantages but necessities for survival."

About IFS
IFS develops and delivers enterprise software for organizations worldwide that produce and distribute goods, build and maintain assets, and manage service-oriented operations. Within our platform, all our industry-specific products are interconnected, and digital innovation is embedded so that our customers can get the best out of themselves when it really matters for their customers - at the moment of service. The industry expertise of our employees and our growing ecosystem, combined with a commitment to deliver value at every step, make IFS a recognized leader and the most recommended supplier in our sector. Our team of four thousand employees embodies the corporate values of agility, reliability, and collaboration in the way we support our more than ten thousand customers every day.

For more information, visit IFS.com and follow us on X (formerly known as Twitter), LinkedIn, Instagram, Facebook and YouTube.

About the research
The research was conducted by Censuswide among a sample of 815 senior managers and above (18 years and older) in the manufacturing industry, working at companies with a turnover of £150 million or more, spread across the United Kingdom, Germany, Austria, Switzerland, the Netherlands, Norway, Sweden, France, Japan, the US, Poland, Czech Republic, Singapore, Australia, Saudi Arabia, the UAE, Belgium, Canada, and Indonesia.

Censuswide surveyed at least 50 respondents per sub-sector group, including Automotive, Chemicals, Food & Beverage, Industrial Manufacturing, High-tech (including medical devices), and Life Sciences. The research specifically focused on the following departments: Production/Manufacturing, Supply Chain, Procurement, Finance, Operations, R&D, Corporate Strategy, and Logistics, with an equal distribution across the sample. The data was collected between June and July 2024.

For further press information, images, or an interview, please contact Janneke van Kasteren and Lieve Nielen from TEAM LEWIS:
Tel: +31 40 235 4600
Email: IFSNL@teamlewis.com