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From AI to Economic Uncertainty: Key Takeaways from Marcum's 2023 National Manufacturing Survey

Saturday, September 30, 2023

NEW YORK, -- The results of Marcum's 2023 National Manufacturing Survey, which features responses from hundreds of manufacturing CEOs and leaders nationwide, paint a mixed picture of confidence and concern against a backdrop of economic and technological changes. The Consumer and Industrial Products group of accounting and advisory firm Marcum LLP produces the annual survey.

While 71% of respondents displayed optimism about the coming year, concerns about rising interest rates, inflation, labor shortages, and potential slowdowns highlight the challenges ahead.

Key findings of the survey include:

• Revenue and Growth: 72% of participants reported a growth in revenue of at least 5% year-over-year. However, these growth figures show a decrease from the prior year, hinting at an early slowdown in 2023.

• Technological Advancements: Companies are increasingly looking towards Artificial Intelligence (AI) and other emerging technologies like Enterprise Resource Planning (ERP) systems to drive operational efficiency and mitigate challenges such as labor shortages.

• Workforce Dynamics: While the challenge of recruiting and retaining talent remains significant, with 75% noting it as a critical issue, there are signs of improvement. For example, fewer companies plan significant hiring initiatives, and expectations of wage increases are down from the prior year.

• Economic Preparedness: In preparation for possible economic downturns, 74% of respondents are managing cash flow, with 58% increasing their planning efforts. Moreover, there is a clear trend towards cost-saving, with 48% looking to reduce expenses in light of rising interest rates.

• Tax Opportunities: Despite tax reductions being a top priority, a staggering 20% of companies aren't taking advantage of any tax credits. This suggests untapped potential for firms to enhance profitability through strategic tax adjustments.

• Strategy and Technology: There is a marked rise in the number of companies planning to invest in technology in the coming year. However, 30% claim to have minimal automation in their processes and may risk being left behind as industry practices evolve.

• Emerging Technology Risks: With companies increasingly dependent on technology, cybersecurity is paramount. Yet, 60% of respondents feel confident in their current tech protection against cyber threats, suggesting a potential underestimation of evolving cybersecurity risks.

"Understanding these insights is critical for manufacturing businesses charting the future of the industry and their place in it. Our goal with this survey is to provide businesses with the perspective necessary to adapt and thrive," said Michael Sacco, Marcum's National Consumer & Industrial Products Leader. "It's heartening to see the growing emphasis on technological investments, from AI to ERP systems, and attention to improving internal operational efficiencies. While global factors like rising interest rates might introduce caution, the push towards optimizing operations and embracing transformative technologies paints a promising picture for the future."

Amidst the evolving landscape, a striking majority of survey respondents are gearing up for change. Rather than sticking to 'business as usual,' they're reevaluating and reshaping their strategies.

"In this year's survey, we see challenges but also significant opportunities. Many are gearing up to manage cash flow better, invest in technology, and re-strategize workforce planning, and it's clear that a mix of rapid tech advancements and economic uncertainty is the motivating factor. It's also a golden time for those with capital to consider strategic acquisitions, especially with potentially undervalued companies on the market," said Jonathan Shoop, Marcum's Midwest Consumer & Industrial Products Leader. "Proactivity is key. The steps we take now, whether in adopting new technology or fiscal strategies, will set the stage for a brighter future."

Leveraging Generative AI for Accounting & Operations with Restaurant365

Thursday, March 28, 2024

Before AI, tasks like reviewing and categorizing transactions in accounting would require extensive manual work and time. With artificial intelligence, this process can be automated, saving hours or even days of work and completing the task at hand in mere seconds.

In the restaurant and hospitality industry, AI can be a valuable tool—particularly for accountants and financial analysts because it acts as a co-pilot to assist with data analysis and decision-making. This frees up skilled professionals to focus their expertise on more strategic tasks.

According to research compiled by Zipdo, 35% of restaurant chains plan to implement AI within the next year to improve their business operations. Let’s explore how Restaurant365 is helping those in the industry harness the power of generative AI to save time, cut costs, facilitate data-driven decisions, and achieve more.

WHAT IS GENERATIVE AI?

The evolution of AI has been happening for decades, starting with rule-based models in the 1950s and progressing to deep learning and machine learning. GenAI is the latest advancement with models like GPT.

GPT is a generative transformer model that uses pre-trained scripts and codes based on interactions with computers to generate language. It started with GPT-2 in 2019 with 1.5 billion parameters for word prediction.

Advancements in technology are allowing models like GPT-4 to become more sophisticated by processing large amounts of text data and images to generate solutions. With the increase in data and improvements in speed and accuracy, the potential for AI models like GPT-4 Turbo to evolve further is promising.

PRACTICAL APPLICATIONS OF GENERATIVE AI IN THE RESTAURANT INDUSTRY

It’s important to note that GenAI is not replacing human jobs in the hospitality industry. Rather, its role is to streamline processes, improve efficiency, and enhance essential functions that employees are tasked with performing on a daily basis. The idea is to leverage GenAI for mundane, repetitive, and manual tasks, so humans can focus on the higher value services to delight patrons. In addition to optimizing the accounting function, here are just a few of the ever expanding ways GenAI can be applied in practice.

RECIPE CREATION

Culinary team leaders can use generative AI tools to come up with new recipes by inputting specific criteria, such as combining vegan and seafood flavors. The AI model analyzes the words and context to suggest potential recipes that fit the criteria. This tool can challenge and inspire culinary teams to try new and unique recipes.

Furthermore, the beverage and cocktail industry can leverage AI learning models to come up with fresh, creative drink mixes. This can help attract new patrons and pave the way for entering entirely new markets.

MENU PLANNING

Artificial intelligence can help with menu planning by determining the cost and profitability of specific dishes, allowing for the creation of menu items that are both profitable and innovative, as well as insight into which popular items should remain as staples.

PREDICTIVE SUPPLY CHAIN MANAGEMENT

Predictive supply chain management is crucial for minimizing waste and ensuring that popular menu items are always in stock. This helps maintain brand reputation and customer satisfaction. GenAI technology can help with predictive and smart supply chain management. According to Business Insider, 60% of restaurants who implemented AI technology say it’s been critical to optimizing their supply chain process.

MENU DESIGN

GenAI models are now able to create images for menu designs, which can help improve the overall dining experience by accurately representing the food being served. This technology can help bridge the gap between what is seen on the menu and what is actually presented on the plate. Using AI-generated images and fonts in your design can save time and money by eliminating the need to hire creative agencies.

SALES FORECASTING & SCHEDULING

Sales forecasting and scheduling are important for running restaurant operations efficiently, especially with narrow profit margins. Using data and models can help predict ideal labor levels for different times of the day so you can allocate resources effectively.

TAX COMPLIANCE

GenAI can also help accountants keep up with the plethora of new tax rules yearly. AI is being used in roles such as tax preparers and financial analysts where a lot of the work is based on established rules. Under the oversight of an accounting professional, AI can be taught to handle these tasks more efficiently.

GENAI BEST PRACTICES

When getting started with GenAI for your organization, it can be helpful to know what steps to include, what to avoid, and where to focus your efforts for optimal results. Here are a few best practices to keep in mind:

1. Focus on data security: Make sure to secure your data and avoid uploading it to open platforms where it could be mined and leaked.

2. Identify key use cases: Train all employees on new technology and encourage them to come up with their own ideas and use cases. Create sandbox environments for them to practice and learn.

3. Be transparent: It’s important to be transparent about your data collection, sharing, and mining practices to build trust with customers and users.

4. Use GenAI with your vendors: Collaborate with your vendors, like R365, to leverage GenAI technology and consider selecting vendors who are forward-thinking in this area. Utilize experts for system selection and implementation.

5. Start small and be patient: Becoming a GenAI organization is a journey that takes time. It involves mapping and phasing, creating projects, pilot testing, prototyping, and measuring success with the right metrics.

IMPLEMENTING GENAI WITH RESTAURANT365

GenAI allows for faster and more accurate insights and analytics. R365’s system integration helps alleviate issues with multiple systems not communicating effectively. Using R365’s innovative technology can streamline accounting and operations and maximize efficiency.

• The OCR technology offered with Restaurant365 allows for quick extraction of data from images of invoices, eliminating the need for manual entry and saving time and resources for more strategic tasks.

• The R365 platform helps businesses better manage their supply chain by utilizing algorithms to accurately categorize invoices and minimize the risk of errors in financials. This allows for better visibility and understanding of the data for all stakeholders.

• Finally, the tool helps businesses scale by analyzing what additional staff may be needed to open new locations and ensuring that new hires will add value and help identify cost-saving opportunities.

Additional ways you can use R365’s advanced GenAI technology to enhance and optimize your restaurant operations include:

• Analyze data to spot potential issues and suggest ways to streamline processes and increase efficiency.

• Evaluate customer feedback and automate review response to address customer needs more effectively and boost your online reputation.

• Create and optimize marketing campaigns that are tailored to your audience and business goals.

• Pinpoint customer preferences and ingredient trends to develop a more diverse menu. This can help you increase profitability and attract more customers.

PARTNERING WITH MARCUM TECHNOLOGY

Restaurant365 is revolutionizing the restaurant and hospitality industry by leveraging generative AI to streamline accounting and operations, drive profit, and facilitate growth. Trusted by more than 40,000 restaurants, R365 brings disparate systems together into one single software solution. It’s ideal for any business owner who is looking to elevate their operations and gain competitive advantage.

However, when adopting cutting-edge technology like GenAI, security is paramount. This is where Marcum Technology steps in. As a leader in the cybersecurity space, Marcum can ensure your sensitive data remains safe while you leverage the power of R365.

R365, coupled with the expertise of Marcum Technology, emerges as a powerful one-two punch, offering not just an advanced software solution but a strategic partnership. Marcum provides the overall technology strategy, and implementation approach for advanced technology solutions, while R365 delivers the technology and tools to bring that strategy to fruition. The answer is simple–leverage a unique partnership of Marcum and R365 to streamline your accounting and operations and embark on a journey that will bring your business to the next level.