MANUFACTURING TRENDS

GREAT READ FROM MY MANUFACTURING DIVE TODAY

I’ve summerized it for you below but definitely encourage you to read the entire article if you are at all involved in the manufacturing side of the apparel industry.

 

The growing need for service revenue

In response to evolving customer demands and the rise of Industry 4.0 technologies like IoT and AI, manufacturers are adopting new pricing models, particularly focusing on customer service. This shift allows companies to meet customer needs for flexibility, predictable expenses through subscription services, and risk-sharing. Additionally, embracing service-based revenue models not only expands market share by tapping into aftermarket opportunities but also enhances business resilience by integrating products and services, thereby increasing customer lifetime value and mitigating market volatility.

The current landscape of service revenue in manufacturing  

Most respondents are familiar with service revenue models; some have already implemented them or are planning their implementation.  

  • 27% use a usage-based pricing model and 25% more plan to implement this model

  • 25% use an annual subscription model and 19% more plan to implement this model

  • 20% use a monthly subscription model and 15% more plan to implement this model

Those with service offers are most commonly using it for the following reasons:  

  • Ongoing services (45%)

  • Maintenance/support (44%)

  • Equipment (37%)  



FULL ARTICLE [HERE]

Krystal LewisBlack Unicorn MerchandisingManufacturing Landscape, Servitization in Manufacturing, Industry 4.0 Technologies, New Pricing Models, Customer Demands in Manufacturing, Subscription Services in Manufacturing, IoT and AI in Manufacturing, Market Share Strategies, Business Resilience in Manufacturing, Revenue Models for Manufacturers, Aftermarket Opportunities, Usage-Based Service Revenue, Flexible Business Relationships, Predictable Expenses, Operational Expenditure