August 1, 2025 How Manufacturers Stay Afloat in Turbulent Times

Why automation, compliance, and data-driven performance management are now non-negotiable in modern manufacturing

by Jennifer Warawa, General Manager, Controllership at insightsoftware

Manufacturing is at a crossroads. As digital disruption accelerates, the industry is rapidly shifting from product-centric models to servitization—where services and experiences become just as critical as the goods themselves. This transformation opens new growth opportunities, but it also introduces operational complexity, financial pressure, and heightened compliance risk. When combined with labor shortages, shrinking margins, and global uncertainty, the call for a bold, strategic overhaul is louder than ever.

At the core of this reinvention is software. From end-to-end platforms to smart automation, technology is becoming the engine that drives resilience, agility, and long-term success in modern manufacturing.

The Current Landscape

Manufacturers today face mounting pressure from all sides: accelerating digital transformation and increasingly complex regulatory demands. Environmental mandates, labor standards, cybersecurity protocols, and export controls are tightening, while global tax reform and transparency rules raise the bar even higher. At the same time, finance teams are stretched thin. Leasing is becoming more prominent, manual processes are reaching their limits, and fragmented data threatens compliance. The risks are real—financial penalties, operational disruptions, and damage to your reputation that can erode customer trust and market share.

To keep pace, automation has become a strategic necessity. Manufacturers need adaptable, audit-ready systems that provide end-to-end data visibility and streamline compliance across every operational layer. This is especially critical for businesses shifting to product-as-a-service (PaaS) models, where recurring revenue must be tracked across multiple entities, each with unique reporting standards. Without a unified platform and clean audit trails, even the best finance teams risk falling short in a rapidly evolving regulatory landscape.

The Shift Towards Integrated Product-Service Models + Automation Tools

To adapt, manufacturers are embracing integrated product-service models, including PaaS. These solutions provide a management environment for data analytics and business intelligence by offering built-in tools for data processing, visualization, and reporting. Traditional methods, often reliant on manual processes and outdated systems, are proving inadequate in addressing the challenges posed by economic instability. PaaS-based solutions help manufacturers enhance customer relationships, steady revenue streams, and improve product lifecycle management. These tools are helping companies address long-standing challenges by reducing audit risk, improving operational efficiency, and enhancing visibility and performance. 

PaaS platforms allow for greater integration across departments, from finance and procurement to production and compliance. This enables real-time decision making and facilitates a single source of truth that supports cross-functional collaboration. By bridging silos and centralizing key functions, manufacturers gain deeper insights into cost drivers, capacity constraints and customer demand. For example, PaaS models allow businesses to turn high-priced equipment into affordable monthly subscriptions to unlock markets that traditional pricing would exclude. By shifting from one-time product sales to recurring billing, manufacturers can reduce upfront costs for customers and expand accessibility. 

Just as important, these models allow for ongoing customer engagement, enabling the delivery of value-added services, faster product upgrades, and long-term relationship building. With every lease or subscription, manufacturers can embed service offerings that generate incremental revenue beyond the core product. With this opportunity comes complexity. Managing recurring billing, renewals, terminations, and asset tracking requires purpose-built systems to handle the nuances of PaaS. Without automation, teams can quickly become overwhelmed.

Embracing Automation and AI for Operational Efficiency

AI and automation are transforming manufacturing – —from predictive maintenance and quality control to smarter, data-driven decisions that boost efficiency. This shift is driving rapid changes in lease accounting as product-as-a-service (PaaS) models expand. With subscription-based equipment delivery, lease data volume and complexity are surging alongside tougher regulatory and reporting demands. Traditional “back-of-the-napkin” accounting can’t keep pace, creating audit risks and blocking scalability in this evolving landscape.

To tackle these risks, purpose-built solutions now exist to manage the entire lease lifecycle, inclusive of back-to-back lease agreements, asset-level tracking, funding analysis, and automatic revenue recognition. These platforms offer a centralized source of truth, improving visibility and making it easier to forecast renewals, expirations, and future lease volumes. These tools offer visibility into key leasing metrics such as payment status, asset location, and renewal projections, which make it possible to forecast lease volume, identify profitability trends, and plan for future growth.

Beyond accounting, automation supports broader business agility. PaaS addresses several key pain points by streamlining operations, enhancing compliance, and improving scalability. By automating routine and regulatory-heavy tasks, manufacturers can now focus more on strategic initiatives such as lean manufacturing and investing in smart factory technologies to drive innovation, rather than being bogged down by administrative tasks. This enhances productivity but also positions companies to better navigate the uncertainties of the economic landscape.

Integrating these systems with core enterprise resource planning (ERP) platforms is essential. It ensures that lease accounting data flows into financial forecasts, helping performance leaders make more accurate, timely decisions. With the right tools in place, finance teams can shift from transactional to truly strategic. 

Looking Ahead

The path forward is clear: automating lease management and compliance enables manufacturers to cut risks, lower costs, and boost financial accuracy. PaaS is not a short-term trend, it is a structural shift in how manufacturers deliver value. However, scaling this model requires purpose-built software that integrates accounting, forecasting, and reporting; automates workflows; and aligns with global standards.

Organizations that invest early can gain first-mover advantages: faster closes, lower risk, greater insight, and deeper customer engagement. For enterprise leaders, this means strengthened performance management across organizations. In a climate where agility is a company’s most valuable asset to face disruptions head-on, automation is paving the way for sustained growth and stability in challenging economic times.

About the Author:
Jennifer Warawa is General Manager, Controllership at insightsoftware, where she leads product strategy and commercial operations for a suite of products that  help finance, operations, and HR teams achieve greater predictability and agility. Prior to insightsoftware, Jenneifer served as President of QuickFee North America. With over 25 years of leadership experience, Jennifer previously held multiple global executive roles at Sage over 12 years, leading commercial transformation and product innovation. A former entrepreneur who ran her own firm for over a decade, she brings a firsthand understanding of the challenges controllership teams face in building and scaling efficient operations. Jennifer has been recognized as one of the Top 25 Most Powerful Women in Accounting and is a sought-after keynote speaker known for her insights on leadership and driving meaningful change in finance.

Read more from the author:

Manufacturing Finance Leaders Key for Driving Change | November 2021

Innovation Will Fuel Manufacturing Rebirth in the US | May 2025

Financial Agility Amid Seasonal Revenue Surges | May 2025

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