The Epicor Perspective
Introduction
Mid-market manufacturers are increasingly adopting cloud ERP for manufacturing companies to address operational complexity, cost pressures, and the need for agility.
The drive comes not just from digitalisation but from the need to modernise core systems without the heavy capital expenditure associated with legacy ERP.
As global cloud ERP spending continues to soar, mid-market manufacturers see real benefits in shifting to the cloud and Epicor is in a strong position to support them.
1. The Cloud ERP Market Is Growing Rapidly
The global cloud ERP market is expected to grow from USD 87.7 billion in 2024 to USD 172.7 billion by 2029, according to MarketsandMarkets.
This growth reflects how companies, including those in manufacturing, prefer scalable subscription models over traditional on-premises systems.
Moreover, Verified Market Research reports that cloud ERP usage in product-centric industries (like manufacturing) is expanding at a CAGR of 9.8%, with strong demand for real-time control, production management, and procurement visibility.
2. Why Mid-Market Manufacturers Are Choosing Cloud ERP
a. Improving Efficiency and Lowering Costs
Legacy on-prem ERP systems often tie up capital in hardware, maintenance, and IT staff. In contrast, cloud ERP allows manufacturers to convert large capital expenses (CAPEX) into predictable operating costs (OPEX).
According to a Rootstock survey, 56% of manufacturing companies cite reducing overall costs as a top benefit of adopting cloud ERP, while 46% highlight improved business agility and resiliency.
b. Scalability & Operational Flexibility
Manufacturing operations are inherently variable as demand fluctuates, production volume peaks, supplier lead times change. Cloud ERP provides near-instant capacity provisioning, enabling manufacturers to scale resources up or down efficiently.
A study by MoldStud observed that manufacturers using modular cloud ERP reduced lead times by up to 25%, thanks to on-demand infrastructure.
c. Better Collaboration and Remote Access
Cloud ERP breaks down data silos across plants, finance, supply chain, and operations. According to Bista Solutions, manufacturing businesses using cloud systems can share real-time data across functional teams, improving alignment and accelerating decision-making.
Additionally, with browser-based access, workers from shop-floor supervisors to remote planners can use the ERP anywhere, which supports hybrid work and increases responsiveness.
3. Technology Trends Driving ERP Migration
a. IoT and Smart Manufacturing
Modern manufacturing trends, particularly in Industry 4.0, are pushing ERP systems to integrate with Internet of Things (IoT) devices. According to Rand Group, cloud ERP plays a central role in collecting real-time machine data and feeding that into decision engines for maintenance and quality control.
This integration allows for predictive maintenance, better production scheduling, and more efficient resource utilisation.
b. AI and Analytics
Cloud ERPs increasingly embed AI to transform data into actionable insight. The Permatech report highlights that in 2025, many businesses choose cloud ERP for its improved security posture, but also for advanced analytics and automation.
Manufacturers can now forecast demand, detect machine anomalies, and automate repetitive tasks, shifting ERP from a passive system of record to an active decision support tool.
4. Risk Reduction and Compliance
Switching to cloud ERP helps mid-market manufacturers manage risk more effectively. Because data is centralized and maintained on secure platforms, issues like version control, data loss, and fragmentation are minimized.
Also, cloud providers continuously apply security patches and updates, lowering the vulnerability risk compared to on-premises systems. According to Permatech, 73% of enterprises migrating to cloud ERP cite improved security posture as a key motivation.
This is especially relevant in regulated manufacturing environments, where compliance and data integrity matter.
5. Mid-Market Fit: Why Epicor Is Well Aligned
From the Epicor perspective, mid-market manufacturers benefit uniquely from cloud ERP:
- Cost Efficiency: With cloud ERP, Epicor can offer subscription pricing that lowers the barrier to entry.
- Industry Depth: Epicor’s ERP supports key manufacturing needs from production planning, inventory management, quality control, and supply chain in a modular way.
- Scalability: As businesses grow, Epicor cloud ERP scales without a large upfront investment.
- Remote Visibility: Epicor’s cloud solutions let executives, operations managers, and plant leads monitor KPIs, inventory, and orders from anywhere.
- Compliance & Security: Epicor supports rigorous controls and audit trails, which are critical for regulated mid-market manufacturers.
6. Measuring Value: What Manufacturers Should Look At
To evaluate the success of a cloud ERP migration, mid-market manufacturers should measure:
- Inventory variance: legacy ERP often leads to high buffer stock; cloud ERP can reduce this.
- Production cycle time: measure before and after to see agility gains.
- IT cost savings: compare on-prem costs vs subscription, maintenance, and cloud operations.
- User adoption: track how many users actively use the ERP from mobile or remote devices.
- Forecast accuracy: context AI-driven demand forecast vs manual projection.
- Downtime or maintenance delays: AI predictive maintenance should reduce unplanned downtime.
7. Neolysi’s Perspective on Cloud ERP Adoption
At Neolysi Technologies, we see a clear trend: mid-market manufacturers are prioritising cloud ERP not just for cost savings, but for long-term transformation.
Rather than prolonging legacy ERP systems, these companies are choosing to build future-proof digital operations.
We help manufacturers by:
- Assessing readiness for migration
- Designing cloud ERP roadmap aligned with production, IT, and financial goals
- Choosing the right deployment model (public, hybrid, private)
- Measuring ROI through business-centric KPIs
- Ensuring change management to drive adoption
By applying this structured approach, Neolysi supports organisations that want the benefits of cloud ERP without risking disruption or overspend.
Conclusion
The convergence of cost pressure, digital-first supply chains, regulatory risk, and AI possibilities means that cloud ERP is becoming a strategic necessity. With Epicor cloud ERP and Neolysi’s implementation expertise, manufacturers can modernise their core systems, unlock real-time insights, and prepare for the next generation of operations safely, affordably, and at scale.
Ready to explore Cloud ERP for your manufacturing business?
Reach out to Neolysi today, and we’ll help you map a transformation path that fits your growth journey.