KUALA LUMPUR, Oct 23 — Around 30 per cent of manufacturing companies plan to increase production localisation efforts over the next six months to better shield from future risks, according to global market research company Euromonitor International.
The production localisation progress would make global supply and logistics chains shorter and provide new growth opportunities for North American and European suppliers, said in a statement.
In addition, changing economic conditions and consumer preferences will impact the manufacturing sector, which will have to adapt to the ‘new normal’.
The future of the global manufacturing industry will be defined by five key trends by 2025 including transition towards demand-driven supply chain; embracing digital solutions and automation; greater flexibility of supply chains; and, repurposing manufacturing capabilities.
Manufacturing companies are expected to invest more in a demand-driven supply chain model and greater flexibility in their facilities.
Meanwhile, around 50 per cent of companies plan to reshape their digital strategies and invest into e-commerce, while one-third of respondents from Euromonitor’s Voice of the Industry survey 2020 will accelerate investments into automation tools.
It is also stated that the manufacturing sector is predicted to transform supply chains in the next two to three years, by making them more localised and flexible, while companies will also look for new ways to utilise manufacturing capabilities outside of their primary industry. – BERNAMA