Insights From Our Software Advisors: Stand Out in Manufacturing

Tools buyers are replacing with manufacturing software

When our advisors asked buyers how they currently manage manufacturing workflows, the answers revealed a clear reliance on stopgap methods:

• Around 59% use generic non-specialized tools, such as construction management and accounting platforms that aren’t designed for modern manufacturing demands.
  
• Nearly 25% rely on manual methods like spreadsheets and paper-based tracking, which often cause inefficiencies as production scales.
  
• Fourteen percent reported no formal method at all, relying instead on ad hoc processes that increase the risk of errors.
  
• A small portion of buyers already use a dedicated manufacturing system, and many of them are now exploring advanced capabilities such as real-time analytics, predictive maintenance, and integrated supply chain management to take their operations to the next level.

While manual methods may work for small-scale operations, they often lead to production delays, inventory mismatches, and quality control issues as complexity increases. Similarly, general-purpose tools may lack the depth needed to support manufacturing-specific workflows, such as bill of materials tracking, shop floor visibility, and multi-stage production planning.

A dedicated manufacturing software solution offers integrated capabilities built for production environments. It centralizes scheduling, inventory control, quality assurance, and reporting, helping teams reduce waste, improve throughput, and respond faster to demand shifts.

Why buyers switch to manufacturing software

Our advisors conversed with buyers currently using either manual methods or general-purpose tools and seeking a switch to manufacturing software. These discussions revealed recurring challenges with their existing systems, including operation inefficiencies (37%), limited functionality (33%), and missed opportunities (8%).

• Operational inefficiencies: Manual tracking and disconnected systems often result in production delays, inventory mismatches, and quality control issues. Buyers report that these inefficiencies become more costly and disruptive as operations scale or diversify.
• Limited functionality: Many buyers rely on tools that lack core manufacturing capabilities, such as multi-level BOM tracking, real-time shop floor visibility, and automated scheduling. Without these features, teams struggle to maintain control, consistency, and throughput.
• Missed opportunities: Generic tools don’t support advanced planning, predictive analytics, or integrated supply chain management. As a result, businesses miss chances to optimize resources, forecast demand, and expand into new markets, limiting their ability to grow competitively.

From our interactions with buyers, it’s clear that many vendors miss the mark in showing how their software improves manufacturing teams’ daily workflows. Compared to manual methods and generic tools, dedicated manufacturing systems offer clear, purpose-built advantages, as listed below:

• Real-time visibility: Manufacturing software provides live updates on production status, inventory levels, and quality metrics, helping teams respond quickly to issues and reduce downtime.
• Integrated planning: Unlike spreadsheets or basic tools, dedicated systems support production scheduling, resource allocation, and demand forecasting—all in one place.
• Scalable infrastructure: As operations grow, manufacturing software enables multi-site coordination, advanced reporting, and seamless integration with ERP and MES platforms.
• Process control: Built-in quality checks, audit trails, and compliance tracking help manufacturers maintain consistency and meet regulatory standards.

What manufacturing software features are valued the most

Our advisor conversations and user review analysis reveal a noticeable gap between what manufacturing software buyers prioritize during evaluation and what actual users find most valuable in daily operations.

• Around 83% of buyers actively seek material requirements planning (MRP) capabilities, viewing it as essential to manage procurement, production schedules, and resource planning.
• Meanwhile, nearly 47% of users rate inventory management as the most critical feature, emphasizing its role in maintaining stock accuracy, reducing waste, and ensuring production continuity.

This contrast highlights a key insight: while buyers focus on strategic planning tools like MRP when selecting software, users rely more heavily on operational features that directly impact day-to-day efficiency.

• MRP supports long-term planning by aligning material availability with production timelines, helping manufacturers avoid shortages and overstocking.
• Inventory management enables real-time tracking of raw materials, work in progress (WIP), and finished goods, ensuring accuracy across locations and minimizing production disruptions.

Use cases for manufacturing software

Manufacturing software supports various industries, each with distinct production workflows, compliance needs, and operational challenges. Here’s how different sectors use it to streamline operations and improve output:

• Metal fabrication companies use manufacturing software to manage custom job orders, track raw material usage, and optimize machine scheduling. Features like nesting tools, production planning, and real-time job costing are essential to handle high-mix, low-volume production environments.
• Industrial machinery, equipment, and supplies manufacturers rely on software to coordinate complex assemblies, manage multi-level BOMs, and ensure parts availability. Integration with CAD systems and support for engineer-to-order workflows are key to maintaining precision and delivery timelines.
• Food and beverage businesses use manufacturing software to handle batch production, track expiration dates, and maintain regulatory compliance. Recipe management, lot traceability, and automated quality checks help ensure consistency and safety across production runs.
• Consumer goods manufacturers benefit from tools that support demand forecasting, packaging workflows, and inventory turnover. Software features like barcode scanning, warehouse management, and multi-channel order tracking help streamline fulfillment and reduce stockouts.
• Medical equipment, devices, and supplies manufacturers require strict documentation, traceability, and compliance tracking. Manufacturing software helps manage serialized inventory, maintain audit trails, and ensure adherence to industry standards like ISO and FDA regulations.
   

Average budgets for manufacturing software across industries

Organizations across the top five segments within the broader manufacturing space are willing to allocate an average budget of between $224 to $329 per user, per month. Additionally, the overall average budget for purchasing manufacturing software is approximately $262 per user, per month. It varies significantly depending on production complexity, compliance requirements, and operational scale.

However, the budget for purchasing manufacturing software differs from one segment to another based on factors such as the type of goods produced, volume of output, regulatory demands, and the need for specialized features such as BOM tracking, inventory control, or quality assurance.

Here’s how different manufacturing industry segments budget (in dollars, per user, per month) for purchasing manufacturing software.

Buyer goals and challenges—what advisors are hearing

Buyers in the manufacturing space often come with specific expectations and recurring questions that reflect their unique operational needs. Through direct conversations with our software advisors, we’ve gathered insights into buyer behavior and their tasks—revealing patterns in their priorities, challenges, and decision-making criteria.

• What common misconceptions buyers have about manufacturing software?
  Many buyers, especially those from smaller shops, aren’t fully aware of what manufacturing software can offer. They often assume it’s only suited for large-scale operations or that it’s limited to design tools like CAD. Advisors frequently encounter buyers who don’t realize that solutions exist for MRP, MES, and inventory control tailored to small and midsized manufacturers.
• What are some common problems buyers are trying to solve with manufacturing software?
  Buyers are typically trying to improve how they track production progress, manage job timelines, and reduce manual planning. Many struggle with coordinating multiple projects, forecasting material needs, and keeping production on schedule. These pain points often lead them to explore MRP systems that offer better visibility and control.
• What are the integration requirements for this kind of software and how important are these?
  Integration needs vary, but buyers often ask about compatibility with CAD tools, accounting platforms, and inventory systems. For metal fabrication and industrial machinery segments, syncing with design software is especially important. Others prioritize connections with financial tools to streamline costing and invoicing workflows.
• Anything unique that buyers in this specialty specifically ask for?
  Manufacturing buyers often ask whether software supports project-based workflows or job shop setups. They also want to know if it can scale with their operations and handle both planning and execution. Many need help understanding which features fit their production style and business size—making education a key part of the sales process.
   

Recommended actions for manufacturing software vendors

Here are five strategic actions vendors can take to better meet buyer expectations and stand out in a competitive market:

1. Focus your messaging on replacing fragmented, non-specialized workflows. Call out the limits of spreadsheets, paper tracking, and general-purpose platforms. Show how your manufacturing system brings production scheduling, inventory control, and quality assurance into one purpose-built solution—designed to simplify operations and drive real results.
2. Customize demos to reflect buyer and user priorities. Bridge the gap between what buyers prioritize (MRP, estimating) and what users rely on daily (inventory management). Start demos with planning features like MRP, then highlight inventory workflows that reduce waste and improve production continuity.
3. Localize messaging by industry use case. Tailor your product positioning to reflect sector-specific needs, such as metal fabrication, food and beverage, medical devices. Highlight features like nesting tools, traceability, and audit trails, and show how your software supports compliance and production complexity.
4. Be transparent with pricing and integrations. Display pricing aligned with the average budget of $262/user/month, and segment-specific ranges ($224–$329). List integrations with CAD, ERP, and accounting platforms to show how your software fits into existing workflows and tech stacks.
5. Educate SMB buyers on scalability and relevance. Many small manufacturers assume manufacturing software is only for large enterprises or design teams. Use content marketing and demos to clarify how your solution supports small and midsize businesses with scalable features like MRP, MES, and inventory control.
    

Rise above your competition with strategic insights

Manufacturing software marketers face enormous pressure to set their products apart from the competition in a crowded marketplace. But with the right insights, you can better understand the key priorities and pain points of your target audience and address them directly in your product messaging to claim your fair share of buyer attention.

With more than 10 million active software buyers on our sites every month, Gartner Digital Markets can equip you with the strategic insights you need to level up your marketing strategy and become a leader in your category.

Log into your Gartner Digital Markets account and optimize your profile to ensure buyers understand how your software meets their evolving needs.

If you need help in building a more qualified sales pipeline, read here. To understand the best practices for following up with your leads, look here.  

Methodology and buyer demographics

Findings are based on data from conversations that Gartner Digital Markets’ advisor team has daily with software buyers seeking guidance on purchase decisions. The data used to create this report is based on interactions with small and midsize businesses seeking manufacturing tools. For this report, we analyzed approximately 2,000+ phone interactions from September 15, 2024, to September 15, 2025.

The findings of this report represent buyers who contacted Gartner Digital Markets and may not be indicative of the market as a whole. Data points are rounded to the nearest whole number.

The buyers we interacted with are largely small businesses representing a growing majority of manufacturing software purchases. Below you’ll find the demographics of the buyers so you can see the size and type of businesses, from annual revenue to industry.