Strategic Analysis of the South African Manufacturing Execution Systems Market

Publication Date	May 2009
Publisher	Frost & Sullivan
Product Type	Report
Pages	89
ISBN Number	not applicable
Product Code	FRS01208

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Summary

Constant Demand for Enhanced Automation Systems to Sustain the Retrofit Demand for MESs

The South African manufacturing execution systems (MESs) market is in its nascent growth phase with high end-user price sensitivity and reluctance to invest significant capital in the technology. However, a continued steady investment in MESs in the metals, minerals and mining, food and beverage and chemicals and petrochemicals sectors is expected to boost the MES revenues from 2009 to 2015. "Despite the economic slump, the market exhibited moderately high growth rates," says the analyst of this research. "The increased need for real time information and efficient operation are likely to boost market growth in the long-term."

To remain competitive, it is vital for companies to have access to accurate information to help them make informed decisions. Companies also need to minimise costs in order to achieve operation excellence. MESs enable companies to realise such goals.

However, many potential end users of MESs in South Africa do not fully understand the benefits of having an MES, thereby limiting revenue growth. This lack of education in the market results in potential end users taking a cautious stance by not implementing MESs in their firms. "To succeed, suppliers should devote more time and resources to targeting top-level management and decision-makers on the benefits, functions, and expected return-on-investment (ROI) of having an MES solution for their company," concludes the analyst.

Another key challenge relates to emigration and inter-company poaching of skilled staff. To overcome this and retain their key staff, suppliers should offer attractive packages.