Middle market manufacturers face unique hurdles when it comes to data management.
Middle market manufacturers face unique hurdles when it comes to data management.
Companies need to modernize their data architecture and improve data governance practices.
Data centralization is foundational for AI usage, especially as more data becomes available.
As middle market manufacturers seek opportunities to integrate artificial intelligence tools across operations, many will need to address a critical barrier that stands in the way: the quality, accessibility and security of their data.
Manufacturers, especially those in the middle market, face unique hurdles when it comes to data management. Unlike their larger counterparts, midsize manufacturers often operate with limited capital expenditure budgets and rely on legacy systems that don’t communicate seamlessly. The result is fragmented data spread across multiple platforms, whether in the form of corporate enterprise resource planning systems, specialized plant floor equipment or supply chain management tools.
Clear data management processes are especially important considering manufacturers generate enormous amounts of data from production lines, inventory systems, supplier networks and customer interactions. While access to vast amounts of data can be a powerful advantage, it requires companies to harmonize disparate data sets to derive meaningful insights. The challenge lies not only in the sheer volume of data, but in the complexity and diversity of systems that generate it. Bringing data together from various sources into a unified data ecosystem is critical to enabling AI tools to harness this web of information.
Manufacturers eager to deploy AI-driven solutions often discover that their data infrastructure is inadequate. Incomplete, inconsistent or siloed data—that is, dirty data—cannot be effectively analyzed, monetized or used to power predictive models and automation. Conversations about implementing AI often circle back to the need for clean, harmonized and accessible data.
AI’s potential—from predictive maintenance and intelligent supply chain optimization to enhanced customer engagement and agentic AI—relies on robust data foundations. Without this, manufacturers may invest in pilots or projects that fail to deliver long-term value, leading to wasted resources and canceled initiatives. The inefficiencies that result from poor data management can hinder technological progress and erode competitiveness in an increasingly digital marketplace.
Companies are aware of the issue; concerns about data quality were the top challenge in using generative AI among respondents to the RSM Middle Market AI Survey 2025: U.S. and Canada.
To unlock the full potential of AI and advanced analytics, middle market manufacturers must embark on a journey to modernize their data architecture and improve their data governance practices. This starts with addressing the core issues of eliminating data siloes and ensuring data completeness and consistency.
Below, we highlight some specific areas—and accompanying action items—manufacturers should focus on to ready themselves for opportunities that AI tools and capabilities might bring:
Transforming data processes is not a simple undertaking, and advisors with backgrounds in analytics, data strategy, cybersecurity and technology implementation can play an important role in guiding manufacturers through the process, whether building data foundations from scratch or optimizing existing systems.
As the industry continues to evolve, data transformation will become even more of a nonnegotiable investment for manufacturers seeking to remain competitive. Improved data visibility and unified reporting frameworks ensure stakeholders can access accurate, timely insights across functions, strengthening both operational control and strategic planning. Middle market manufacturers must recognize the importance of complete, consistent and integrated data as the cornerstone of their digital strategy and any AI-driven efforts in the future.
RSM data and analytics supervisor Diana Dale contributed to this article.