Manufacturers to invest USD $5.8 billion as spreadsheets endure

Manufacturers are forecast to spend USD $5.8 billion on product lifecycle management (PLM) software by next year, as digitalisation in the sector progresses.

Despite significant investments in PLM software and other enterprise systems such as enterprise resource planning (ERP), spreadsheets remain a central component of daily operations in manufacturing organisations.

Spreadsheets continue to bridge gaps between large-scale systems and unique, business-specific workflows that cannot be fully captured or automated by standardised software. These tools have been described as the "glue" holding many manufacturing workflows together, with roles in cost modelling, supplier management, scheduling, and reporting.

The hidden role of spreadsheets

Industry analysis shows that while ERP and PLM platforms are considered integral to manufacturing's digital infrastructure, they do not address every operational need. Instead, critical processes often reside in spreadsheets, with years of business logic, macros, and models embedded within them. Replacing these spreadsheets would require a costly and time-consuming reconstruction of complex knowledge that enterprise systems are not equipped to replicate.

However, the use of unmanaged spreadsheets introduces notable challenges into manufacturing environments. Manual updates can cause inefficiency, while version discrepancies and errors pose risks to decision-making. The lack of governance over spreadsheet use also raises concerns related to oversight and security.

Supercharging, not replacing

Some industry specialists argue that the solution is not to abandon spreadsheets, but to modernise their role within manufacturing workflows. Sebastian Dewhurst, Founder of EASA, advocates for transforming spreadsheets into web-based applications that integrate with existing enterprise systems while retaining their underlying expertise and business rules.

"When supercharged, they complement ERP and PLM - giving businesses the agility they need without the disruption of system overhauls,"

This approach, according to Dewhurst, allows for the preservation of intricate formulas, macros, and structures, reducing the need for expensive redevelopment. Web-enabling spreadsheets can also address common issues, providing version control, ensuring compliance, and enabling secure collaboration across distributed teams.

Enterprise-ready solutions

Digitally transforming spreadsheet-based processes supports better governance and strengthened integration with formal systems. "Rather than treating spreadsheets as a weakness, manufacturers should view them as an opportunity," says Dewhurst. "Modernising them means you don't have to throw away years of embedded knowledge - you can make them smarter and better integrated instead."

Benefits reported from organisations adopting this approach include streamlined processes, reduction of errors, and increased efficiency. Modern web-based spreadsheets allow multiple users to interact with data securely and in real time, supporting compliance requirements through full oversight and audit trails. Integration with ERP and PLM can enable spreadsheets to manage "last mile" workflows that official systems are unable to address directly.

Guidance for manufacturers

Dewhurst believes that effective digital transformation in manufacturing does not require discarding spreadsheets entirely. Instead, he suggests manufacturers focus on improving, securing, and integrating their spreadsheet assets:

"Digital transformation shouldn't mean discarding spreadsheets. Instead, leaders should ask how they can make them smarter, more secure, and fully integrated. That's how manufacturers can future-proof their operations - without having to start from scratch."

Many in the sector are now looking at solutions that convert legacy spreadsheets into governed, collaborative web applications. These platforms aim to maintain compatibility with existing formulas, macros, and add-ins, and provide features such as version control and enforced authorisation to protect organisational data.

As manufacturers continue investing in large-scale digital transformation projects, ensuring that spreadsheet-based processes are managed and integrated is becoming another critical component in their efforts to improve efficiency, security, and compliance across operations.