In today’s increasingly regulated industrial landscape, digital transformation remains essential. In sectors such as chemicals production, durable manufacturing and metals and mining, rising compliance requirements demand far more than awareness. Success hinges on end-to-end, real-time visibility across assets, operations and data systems.

According to our latest global report, Data Connectivity & Visibility: The Competitive Edge, 70% of industrial organizations expanded their use of digital tools and data sources in the past year. This shift highlights an industry-wide push to improve data transparency, accuracy and control for compliance and enhanced operational efficiency.

Yet, despite growing investment in digital solutions, many organizations struggle to fully realize the value of these tools. Disparate systems and siloed processes often limit the ability to generate timely, actionable insights.

Escalating Complexity of Compliance 

Compliance becomes increasingly difficult for organizations operating across multiple jurisdictions and regulatory frameworks. According to PwC’s Global Compliance Survey 2025, 86% of industrial sector executives report that their compliance obligations have grown more complex over the past three years.

This increasing complexity spans sustainability mandates, tax and audit obligations, health and safety regulations and cybersecurity standards. For global operators, compliance requirements shift rapidly and continuously—a pace that often outstrips internal capabilities.

As organizations scale up their digital ecosystems, the technology itself becomes more complicated. The growing number of disconnected platforms offers only partial visibility, with limited interoperability. Rather than solving problems, this fragmentation frequently compounds them.

Top Operational Challenges  

Our survey of 400 global senior leaders in heavy industries revealed a consistent set of operational challenges associated with this lack of integration. These challenges affect safety, profitability and compliance outcomes. Among those surveyed:

• 70% report a strong or severe impact from missed project milestones
• 64% cite budget overruns
• 65% impacted by unplanned production downtime
• 93% face difficulties in scaling assets to meet business demand

Leaders identified several data-related root causes. Chief among them were delays or outdated information (74%), poor system connectivity (73%) and aging infrastructure (73%).

But the challenge isn’t only technical. Human capital gaps also play a critical role. A full 76% of respondents say skills and knowledge shortages significantly contribute to operational inefficiencies.

Digital Investment, Uneven Returns

To address these pain points, many organizations have increased their use of advanced technologies, including visualization dashboards, digital twins and geospatial tools. 76% percent of respondents report frequent or continuous use of dashboards, while 73% report the same for digital twins.

However, the return on these investments is inconsistent. 63% percent of executives report that their teams still spend too much time manually consolidating data and generating reports, consuming nearly 19 hours per week. This time drain underscores a persistent gap between digital potential and day-to-day realities.

The result? Companies face delayed responses, inefficient reporting and a greater risk of non-compliance. 

Digital Thread in Bridging the Gap 

One of the most effective ways to overcome these challenges is through digital thread technology. Unlike isolated tools, a digital thread connects assets, systems and stakeholders through a continuous flow of contextualized data.

Currently, 69% of organizations report frequent or continuous use of digital thread solutions. Of these, 71% say their teams now have direct access to the systems and information they need, compared to 57% of those still relying on siloed systems.

Digital thread adoption delivers measurable benefits such as enhanced visibility, faster decision making, less manual effort and more confident, agile responses to compliance needs.

A More Connected, Compliant Future

As regulatory pressures intensify, heavy industries will need to invest in technology and carefully plan how to implement and scale it. Without thoughtful integration and change management, digital tools alone won’t deliver lasting value.

Digital thread technology provides a roadmap for building resilient, future-ready infrastructure. Connected systems, people and processes through a common data architecture provide organizations with the clarity needed to meet evolving compliance challenges head-on.

To explore insights from Hexagon’s global research and discover how digital thread technology can drive compliance success in the heavy industrial industry, download the full report.