We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • ProMat 2023
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • ProMat 2023
    • Upload Your Video
Home » and the mid-market shall lead them
inbound

and the mid-market shall lead them

August 1, 2003
DC Velocity Staff
No Comments

If vendors of enterprise resource planning (ERP) systems meet their growth forecast, they'll have America's mid-sized companies to thank. According to recently released data from the ARC Advisory Group in Dedham, Mass., the ERP market within the manufacturing sector is expected to grow to $11.9 billion by 2007 from $8.9 billion in 2002 for a compound annual growth rate of 5.8 percent. And it looks like it won't be the big guys leading the way. Growth will be driven by mid-sized (a.k.a. midmarket or Tier 2) companies.

"Tier 2 now accounts for the highest percentage of ERP revenues, surpassing Tier 1 by more than 10 percentage points," says ARC analyst Steve Clouther, co-author of the study, ERP Software & Services Worldwide Outlook. Tier 2 accounted for 41 percent of the total ERP market in 2002 and will continue to expand its share, Clouther predicts.

The forecast for an overall growth rate of 5.8 percent should come as welcome news to ERP players. General market uncertainty and weakness in the global economy hurt the ERP applications market in 2002, when annual revenues declined by 0.6 percent from 2001 levels. Nonetheless, ARC reports that many manufacturers view the current business climate as a good opportunity to revamp their operations and make them more cost effective.

"The world economy remains difficult and the geopolitical environment is still unpredictable," according to Clouther. "The biggest difference between the situation a couple of years ago and now is that companies are investing almost exclusively in order to [improve] cost effectiveness. In late 1999, there was a huge surge in ERP implementations as businesses around the world prepared for Y2K. Now, four years later, the motivation is for the manufacturers to be replacing or upgrading their ERP solutions."

Technology Enterprise Resource Planning
    • Related Articles

      The future is plastics … just less of them

      Swisslog WDS Americas makes major move to lead the pallet shuttle market with its new Americas TC

    Recent Articles by DC Velocity Staff

    Can “NLP” help you up your logistics game?

    Union Pacific will support paid sick leave for its 5,600 locomotive engineers

    Lift truck industry celebrates National Forklift Safety Day 2023 with special offers, events, and recommendations

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Union Pacific agrees to provide more predictable schedules for union rail workers

    • Schneider National opens innovation center at Wisconsin headquarters

    • DHL Supply Chain will expand Locus Robotics fleet to 5,000 AMRs

    • Trucking companies face “modestly unfavorable” outlook heading into 2024

    • Parcel carriers, shippers steer into choppy waters as a perfect storm of challenges approaches

    Now Playing on DCV-TV

    B0d646ac 1d71 44f7 9c47 80a0858638b7

    Improve Overhead Access with Custom VRCs

    DCV-TV 4: Viewer Contributed
    Tackling high-reach storage challenges is easy with Autoquip Lifts. We offer a wide variety of design features for Vertical Reciprocating Conveyors, or VRCs, to safely transfer materials from multiple levels based on the client’s specific needs. Don’t know where to start? We can create the perfect hydraulic or...

    FEATURED WHITE PAPERS

    • How to Use Economic Uncertainty to Gain Competitive Ground with Automation

    • Exploring Customized Forklift Solutions

    • Exploring the Future of Labor Management With Capacity Planning

    • Three layers of forklift safety: Promoting operating best practices

    View More

    Subscribe to DC Velocity Magazine

    GET YOUR FREE SUBSCRIPTION
    • SUBSCRIBE
    • NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing