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.
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.
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.
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.
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