#IndustrialTech

Manufacturing Software

With a focus on the convergence of manufacturing solutions, we believe that manufacturers are ultimately seeking a single vendor that can tightly integrate multiple product categories to optimize process/maintenance, enable product-level traceability and improve overall compliance/quality posture.

LLR seeks to build a comprehensive platform of these solutions for asset intensive end markets across the manufacturing ecosystem. CEOs of companies in the space, or the intermediaries working with them, should contact Tim Mounsey to discuss relevant opportunities for LLR to support their growth strategy.

The opportunities for CMMS/EAM today are substantial and exciting. To seize them fully, CMMS/EAM operators need to take a longer-term view of Industry 4.0 capabilities and set up their IoT strategies with agnostic integration at the forefront. That will take some capital, and providers need to move quickly, but it puts them in a better position to reach the next level in terms of where this market is going. The speed at which these technological developments occur has accelerated rapidly. If you don’t adopt these strategies soon, a competitor will.

Paul Lachance, Senior Operating Advisor, LLR Partners

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Why We're Investing in Manufacturing Software

Industry Tailwinds

Six primary industry trends present the need and growth opportunity for manufacturing software:

  1. Overall digitization of the manufacturing sector

2. Onshoring of U.S. manufacturing

3. A complex regulatory environment and the risk of fines associated with failed audits/inspections, combined with an enhanced focus on employee safety initiatives

4. The need for remote visibility and automation solutions to reduce capital costs and reduce unnecessary onsite labor

5. The rise in OEMs incorporating remote monitoring capabilities but struggling to connect with other assets outside of their products

6. A challenging backdrop of supply chain constraints and skilled labor shortages, forcing businesses to go on the IoT journey

Value Proposition for Manufacturing Software

We believe these product categories will ultimately converge in a verticalized way to provide customers with an end-to-end solution across production workflows. By enabling proactive/preventative maintenance and process visibility, businesses have the opportunity to drive ROI through:

  • Optimizing asset/manufacturing efficiency
  • Lengthening useful life of equipment
  • Reducing capital costs
  • Reducing labor and maintenance costs
  • Improving compliance and safety postures
  • Reducing the risk of regulatory fines
  • Improving product quality & customer satisfaction

Areas of Interest for Investment

  • SCADA and IOT Data Acquisition
  • Environmental, Social, Governance (ESG)
  • Environmental, Health and Safety (EHS)
  • Quality Management System (QMS)
  • Enterprise Asset Management / Computer Maintenance Management System (EAM/CMMS)
  • Asset Performance Management / Machine Execution Systems (APM/MES)
  • Supply Chain Vendor Management
  • Field Service Management (FSM)
  • Product Lifecycle Management (PLM)

Opportunity to improve ROI through proactive/preventative maintenance and greater process visibility

25%
1
of manufacturing workers are over the age of 55
+12%
2
growth projected for the smart manufacturing market by 2025
13%
3
estimated savings in production costs by implementing manufacturing software

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References

  1. “New Report Dives Into Retaining The Aging Manufacturing Workforce,” National Association of Manufacturers, 2019, https://www.nam.org/new-report-dives-into-retaining-the-aging-manufacturing-workforce-5579/
  2. “Smart Manufacturing Market by Technology – Global Forecast to 2028,” Markets and Markets, 2023, https://www.marketsandmarkets.com/Market-Reports/smart-manufacturing-market-105448439.html
  3. “Industrial Manufacturing Trends 2019,” PwC, 2019, https://www.pwc.com/gx/en/ceo-survey/2019/Theme-assets/reports/industrial-manufacturing-trends-report-2019.pdf
Disclaimer:

The information presented herein is intended for an audience of potential LLR portfolio companies and the intermediaries supporting their capital raise processes. Named LLR investments presented herein do not reflect a complete list of LLR investments and are provided for informational purposes only. Certain statements about LLR made by portfolio company executives and other quoted parties herein are intended to illustrate the work of LLR’s Value Creation Team with such portfolio companies or reflect the individual’s perspective on the featured industry sector. Such portfolio companies are controlled by investment vehicles managed by LLR. Quoted parties were not compensated in connection with their participation, although they generally receive compensation and investment opportunities in connection with their portfolio company or Senior Operating Advisor roles, and in certain cases are also owners of portfolio company securities and/or investors in LLR-sponsored vehicles. Such compensation and investments subject participants to potential conflicts of interest in making the statements herein.