Enemies at the gates

Manufacturing CEOs share their fears and opportunities

Manufacturing CEOs share their fears and opportunities

National Sector Leader, Industrial Manufacturing

KPMG Australia

Contact

Related content

If you aren’t worried about your organisation’s ability to compete, you probably should be. The fact is that – irrespective of the market disruptions of the summer – growth is coming to the manufacturing sector. But this round of growth won’t be decided on volumes and prices; according to manufacturing CEOs, it will be fought – and won – on the battle ground of innovation. Is your organisation making the right investments to win in this constantly changing, competitive environment?

According to KPMG International’s Global CEO Survey, 62 percent of manufacturing CEOs reported increased confidence in their organisation’s growth potential over the next three years. More than two-thirds also said they were bullish on the global economy.

Key insights

  • Almost two-thirds of the manufacturing CEOs said they were concerned that their products and services may not be relevant three years from now.
  • Manufacturers are increasingly adopting advanced manufacturing techniques and piloting new manufacturing technologies (everything from 3D printing and nanotechnology through to robotics and predictive analytics) in order to gain a competitive edge.
  • Top priorities for manufacturing CEOs over the next three years include fostering innovation, developing new growth strategies, stronger client focus, reducing cost structure, and greater speed-to-market.

Growth and competition

Notwithstanding the gloomy manufacturing data out of China this summer, most manufacturers believe they are entering into a new era of growth. According to KPMG International’s Global CEO Survey, 62 percent of manufacturing CEOs reported increased confidence in their organisation’s growth potential over the next 3 years. More than two-thirds also said they were bullish on the global economy.

The innovation imperative

What’s really worrying manufacturing CEOs, however, is the possibility that they may be losing the innovation race – that their competitors may be innovating faster, more efficiently or more effectively than they are. Almost two-thirds of the manufacturing CEOs in our survey said they were concerned that their products and services may not be relevant 3 years from now. Almost three-quarters said they were worried that their organisation wasn’t doing enough to keep current with new technologies. 

A broader understanding of innovation

The fact that innovation is moving up the agenda and gaining increased investment is a strong signal that manufacturers are starting to act on their fears. But it will take more than increased capital and enthusiastic leadership to create innovative manufacturers. It will also require CEOs and their management teams to think more holistically about innovation.

Global CEO Outlook 2015

Global CEO Outlook 2015

The Global CEO Outlook provides insight into the key challenges and opportunities for CEOs.

Food, Drink & Consumer Products

We help clients in the food and drink sectors and consumer product companies deal with business issues and explore growth opportunities.

 
Read more

© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG's new digital platform