Connected factories: A roadmap to manufacturing modernization in South Africa

South Africa’s somewhat tumultuous past has shaped every corner of its economy — including manufacturing.

While manufacturers in Europe, Asia and the US were developing smart factories in the early 1990s, South Africa was emerging from isolation. At the time, the country had a strong manufacturing base, but it was inwardly focused, with no exposure to global competition, and not prepared for the rapid technological shift that would redefine competitiveness overnight.

Add to this ongoing sociopolitical dynamics, union influence and the lingering perception that automation threatens jobs, and it’s no surprise that South Africa’s manufacturing sector is not keeping pace with global modernization.

Why modernization matters now

A strong manufacturing backbone creates jobs, supports increased exports and creates economic stability. When manufacturing grows, the economy grows. But when it stalls, the ripple effects are felt everywhere.

To become competitive on the world stage — and economically resilient — South Africa needs manufacturing that’s faster, smarter and far more efficient than traditional models can provide.

And there’s nothing holding local manufacturers back. The tools, expertise and technology for an automated, connected factory exist and are readily available. What’s missing is adoption, not access.

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What happens when factories finally start to connect

When adoption does happen, the impact is felt throughout the value chain. Production becomes more predictable, information flows quickly and teams manage issues before they escalate. What was once reactive becomes coordinated.

Once you start automating — and you can start small, by connecting a few machines, digitalizing paper processes or tightening the link between planning and the shop floor — you’ll create a noticeable lift in performance, which, in turn, makes your organization more competitive.

That’s the power of real adoption. It builds momentum, strengthens competitiveness and gives manufacturers the foundation they need to grow in a market that’s becoming tougher every year.

The spoke in the wheel of automation

So, if automation is such a powerhouse of potential, the question is: Why is adoption lagging in South Africa? There are several reasons.

One of the biggest hurdles is simply the lack of local benchmarks. Manufacturers don’t have South African examples to point to and say, “Look what they achieved with automation.” This makes it difficult to build a convincing business case and creates hesitation, because no one wants to be the first mover.

There is also a deeply embedded belief that modernization is expensive, when in reality, a R10 million investment can return R100 million if tied to the right metrics. Yet many leaders dismiss international metrics, thinking they don’t apply in South Africa.

Added to this is the reality that most organizations are in survival mode. They deal with inflation, thin margins and low demand, which makes long-term thinking difficult. And, with fragmented IT and operational systems, even small changes can feel overwhelming.

When assumptions do the heavy lifting

Much of what slows adoption isn’t a lack of capability but a set of assumptions that have gone unchallenged for years.

Many manufacturers still believe modernization needs sweeping change, specialized skills or risky disruption. But the industry has matured to the point where the technology is stable, well-tested and designed to slot into existing environments.

The cost concern also starts to look different when viewed through real numbers. Returns compound quickly when the right metrics are applied — not because the tools are expensive but because inefficiency has become too expensive to ignore.

And the fear that automation threatens jobs softens the moment teams see how it plays out: Roles shift, workflows improve and people spend more time solving problems than firefighting. Higher-paying and more meaningful work becomes possible for even the least-educated employees.

The barriers might feel enormous, but they’re mostly misconceptions — and misconceptions can be overturned.

The smarts behind a smart factory

Modern manufacturing isn’t driven by one big system or a single magic-wand approach. It’s about the way different technologies start working together. This is where platforms like SAP come into their own. More than an enterprise resource planning (ERP) tool, SAP has evolved into a suite of tools that connects your entire manufacturing ecosystem. You can integrate vertically, from shop floor to top floor, and horizontally, to customers’ customers and suppliers’ suppliers).

Once these layers are in place, NTT DATA’s role is to bring them together so the technology works as one coherent system. When planning systems can see what’s happening on the production line, when maintenance can predict failures instead of reacting to them, and when quality data flows automatically, instead of being captured on paper, the whole environment becomes clearer and easier to manage.

IT and OT integration means machine sensors, production schedules, workforce systems and supply chain tools no longer run in silos. They start to talk to each other. And once that happens, your operations work more efficiently and you can respond to customer demands quickly and reliably.

SAP provides the infrastructure. NTT DATA brings the experience to connect it all. Together, we help you shift from fragmented and reactive to connected and predictable — all without forcing a complete technological overhaul.

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Put South African manufacturing on the map

The past should never define the future. The opportunity, the technology and the expertise are here. The only thing holding South African manufacturers back is adoption.

But we can’t ignore the reality: If we don’t take the leap into automation within the industry, we risk falling even further behind the international curve and continuing to deindustrialize and increase unemployment and inequality in our society. If we do, however, the picture changes because we open the door to a far more competitive and resilient manufacturing base. Export-led growth then becomes viable, with concomitant benefits in the balance of trade and currency strength. The choice is ours — and the leaders will be those who are willing to make the first move.

If you’re ready to take the first step toward a more connected, resilient operation, we’re ready to partner with you every step of the way.

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