Imminent Digitalization of Global Adhesives and Sealants Industry to Unearth New Growth Avenues
Digital transformation will ease management of key operations and enhance customer experience, says Frost & Sullivan
Frost & Sullivan’s recent analysis, Digital Transformation in the Global Adhesives and Sealants Industry, 2020, reports that the digitalization of domains such as sourcing, production, and retailing by adhesives and sealants manufacturers will give rise to new growth opportunities in the industry. While 90% of the sector is still in the early stages of digitalization, companies are expected to accelerate their digital transformations to counteract the business disruptions caused by the COVID-19 pandemic.
“With the world increasingly moving towards a local-for-local production and supply model owing to change in the international trade relationships and the impact of the COVID-19 pandemic, manufacturers of adhesives and sealants stand to gain considerably through utilizing digital technologies to shorten and enhance the efficiency of sourcing and distribution,” said Christeena Thomas, Senior Industry Analyst for Visionary Science at Frost & Sullivan. “While most companies are still exploring ways to digitalize their business processes, several leading suppliers have ventured into key technologies based on artificial intelligence (AI), IoT, and Big Data analytics. This will enable them to further enhance their operational capabilities during and post this pandemic.”
Thomas added: “The post-pandemic world will drive the use of more digital marketing strategies by both large and small companies in the industry, with leading manufacturers expected to launch innovative solutions based on IoT, AI and Big Data analytics in the next two years.Adhesive and sealant companies are also slated to offer digital products such as online platforms or handheld devices. These will relay real-time performance metrics of adhesives and sealants applied to customers’ assets.”
For further revenue opportunities, companies in this sector should:
- Enhance the digital literacy of their employees across the board. Companies must continuously invest in upskilling their staff to ensure the seamless execution of existing and upcoming digital strategies.
- Invest in centralized platforms for global operations that can significantly escalate the speed of process execution within and outside offices. This will enable manufacturers to overcome any internal operational inefficiency.
- Improve customer experience through apps, additional inputs, and app-based solutions. Automating typical marketing tasks can minimize human error and enhance efficiency by reducing manual efforts in repetitive tasks.
- Leverage the benefits of 5G connectivity and IoT in marketing. For instance, embedding product packaging with sensors connected with IoT or creating a platform where customers can share their unique perspectives would provide valuable insight to manufacturers.
- Implement digital technologies that provide capabilities such as IoT for real-time inventory monitoring. This greatly benefits manufacturers by expanding their control over the production processes.