Continuous Improvement Systems to Grow 12.7 Percent Annually

The market for Continuous Improvement (CI) systems was $211.5 million in 2005. It is forecasted to grow to $402.8 million by the end of 2010 with a strong compounded annual growth rate (CAGR) of 12.7 percent.

Globalization is exerting extraordinary pressure on manufacturers, causing most to adopt Continuous Improvement programs. Applications for CI systems have “crossed the chasm”, and leaders are starting to emerge for the key segments of this market. “Adoption of technology to enhance continuous improvement programs allows manufacturers to take their business to a higher level of financial performance in both their P&L and balance sheets,” according to Research Director Ralph Rio, the principal author of ARC’s “Continuous Improvement Systems Worldwide Outlook”.

ARC has conducted surveys among manufacturers on their CI preferences and practices. The results show that 80% of manufacturers are applying one or more CI methodologies. The Continuous Improvement programs used most often by manufacturers are Lean Manufacturing, Six Sigma, Total Quality Management (TQM), and Theory of Constraints (TOC). Manufacturers are looking to CI systems to improve operational performance in the areas of labor utilization, inventory levels, quality, asset utilization, and cost of goods sold.

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