Systems Integration Market Could Double in Size by '98

Spurred by the demands of global competition and increasingly complex production processes, the U.S. market for manufacturing systems integration (MSI) will double from $4.85 billion in 1993 to $9.85 billion in 1998 at a 15% annual rate, projects a new study from market researcher Frost & Sullivan (Mountain View, Calif.). The report forecasts that systems programming will expand from $2.3 billion in 1993 to $4.8 billion in 1998, while systems integration, more narrowly defined, will grow from $1.2 billion to $2.5 billion.

Downsizing has reduced corporate staffs to the point they are unable to accomplish their companies' reengineering efforts, supporting the use of contract systems integration services. As the complexity and sophistication of integrated production processes continue to increase, corporations will rely more heavily on outside consultants, specialists and systems integrators.

The shift from centralized to distributed computing environments based on open systems standards will continue. The requirement for linkage of information- and technology-driven systems to on-line production operations to improve productivity and add flexibility to the manufacturing process will be central to MSI growth.

While downsizing is being used as a short-term solution to bolster operating margins, corporations are relying on reengineered information- and technology-driven manufacturing systems for longer-term solutions to improve competitiveness in growing global markets. What is perceived as a prolonged global recessionary business climate, coupled with rapid development of regionally-based but international manufacturing, has stimulated renewed MSI growth.

Just-in-time and ship-to-stock system principles are shrinking lead times, adjusting inventory levels and reducing material waste. Production processes will become more product-focused to respond to customer requirements.

For manufacturing systems to become more responsive to the fluctuating demands of the global marketplace, more real-time decision-making still needs to be moved to those closest to value-adding production processes.

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