New geographies coming into view | KPMG | IL

Global Manufacturing Outlook: New geographies coming into view

New geographies coming into view

Maintaining the status quo does not drive growth. Manufacturers will need to do something different in order to win market share in today’s environment. Many are focusing on entering into new geographic markets.


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Entering new markets

Most manufacturers now recognize that they will need to open up new markets if they hope to achieve significant, above-average, growth. And our survey shows that manufacturers will be stepping up their focus on entering new markets going forward.

“Particularly for sectors like A&D and Automotive, where the forecasts for the mature markets seems to point to slower growth and high pricing pressures, manufacturers really have no choice but to start expanding into new markets and adjacent sectors for high growth opportunities.” 

- Mark Barnes, KPMG”s Global Head of Growth Markets 

Looking overseas for top and bottom line growth

Gone are the days when overseas expansion was purely a cost-savings strategy. Today’s manufacturers are hoping to achieve both top-line and bottom-line growth from their overseas investments.

“Manufacturers have gone from a ‘make in China’ strategy to instead gear up for a ‘sell to China’ strategy.”

- David Frey, Head of Strategy and Operations Consulting, KPMG in China. 


What’s the point?  What did manufacturers say? How are leading manufacturers responding?
Manufacturers are concentrating their focus onto
key markets to support growth
  • 56% say they have significant
    plans to enter a new geographic market
  • 34% say gaining access to new markets is the primary driver of their international investment strategy 
  • Mapping and adapting their products and services against the needs of buyers in key regions around the world 
  • Aligning with the right
    relationships and supporting infrastructure to win and sustain business in new markets
  • Assessing how to best enable their strategy by building, acquiring or partnering

2016 Global Manufacturing Outlook links

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