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Canada's Manufacturers: IT Is Our Top Operational Spending Priority |
| Source: |
itbusiness.ca |
| Source Date: |
Monday, August 27, 2012 |
| Focus: |
ICT for MDGs
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| Country: |
Canada |
| Created: |
Aug 28, 2012 |
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Although Canadian manufacturers list IT spending as a top priority, they're actually investing less in technology upgrades than they did last year.
According to PwC's Manufacturing Barometer Report for Q2 2012, 63 per cent of companies surveyed say they need to boost investment in their operations, and 40 of those say IT spending is their number one priority this year.
There's a disconnect, however, between the need or intention of manufacturers to put money into IT and the actions they actually take, the survey suggests.
“Regardless of their belief that spending to improve their IT operations is good for business, in reality taking action to invest remains low. Overall spending on IT is three per cent despite an industry average of 3.6 per cent for IT spending as a percentage of revenue in 2011,” PwC stated in a news release.
What gives? It may be a case of manufacturers ghettoizing IT as an important but very separate part of their operations rather than viewing it as crucial to every component of their entire business strategy, said Richard Jhang, technology advisor leader at PwC.
“Organizations must view technology as an essential part of their entire business plan and not just part of an IT department consigned to mundane functions such as keeping servers running and email flowing,” Jhang said in the release.
The tone of the Q2 survey results is decidedly downbeat with 54 per cent of companies saying they're optimistic about the Canadian economy, a 22 percent drop from Q1.
The study is a quarterly telephone survey to gauge the 12-month outlook of manufacturing executives for revenue growth, merger and acquisition activity, new investments, hiring plans and emerging business trends.
(By Christine Wong)
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