Industrial Companies Are Increasingly Concerned About Productivity...

Industrial Companies Are Increasingly Concerned About Productivity Improvements and Investment Risks

Manufacturing Technology Insights | Thursday, July 02, 2026

There have been a lot of changes in how capital expenditures are managed in industrial environments. In particular, automation projects have been getting more attention lately. When discussing automation with manufacturing companies from Latin America, the emphasis appears to be made on timing, project scope and impact, rather than on technology enthusiasm.

It is clear that automation projects have to be considered in the context of other investment decisions that manufacturing companies are dealing with. Manufacturing equipment updates, maintenance projects and expansions might require some funding as well. Therefore, automation becomes just one alternative that needs to be considered during the discussion.

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In addition to the usual approach towards evaluating new technologies, there might be a need to pay attention to specific aspects related to actual production processes. For example, decision makers can be interested in the effects of automation on the company's productivity levels and process reliability.

However, this attitude is certainly not supposed to mean any loss of interest in automation projects. The situation is quite the opposite – manufacturers appear increasingly selective in terms of choosing places where automation can bring value. The projects focused on addressing existing production issues might get higher priority than comprehensive solutions aimed at the entire factory.

Not all industries and manufacturing facilities in Latin America move at the same pace. There will be differences in production processes between manufacturing facilities. This might lead to different areas being identified as top priorities in terms of automation projects.

As automation projects become more prominent in such discussions, the actual purchasing process can start involving many additional aspects. Besides analyzing the technical features of a particular solution, there is a need to take into account various costs related to project implementation, including training employees on using the new technology and maintaining it after deployment.

The need to manage risks also starts playing an important role in decision making processes. Project implementation can cause production interruptions in certain cases and this issue needs to be addressed during the discussion. It will be important to see whether a new project is going to work well with the production process.

Providers of technology solutions operating in this environment should understand that they are facing a completely different mindset of decision makers who are interested in the practical side of the story. It can be hard to persuade a buyer that a particular automation technology is good without proper plans for implementing the solution in production.

It is worth noting that smaller-scale automation projects might enjoy better conditions because of such approach to buying decisions. With incremental deployment, there is always the opportunity to analyze performance in advance.

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