2016 Global Manufacturing Competitiveness Index examines how global manufacturing companies can succeed

Posted by Michelle Drew Rodriguez

In the first two blog posts about the 2016 Global Manufacturing Competitiveness Index, I discussed country rankings and global competitiveness drivers uncovered in the Index which I coauthored with several colleagues at Deloitte (including Craig Giffi, Vice Chairman, US Automotive Leader and Tim Hanley, Global Manufacturing Leader) and in collaboration with the US Council on Competitiveness. The study follows earlier versions released in 2010 and 2013, and the findings are based on an in-depth analysis of survey responses from more than 500 chief executive officers and senior leaders at manufacturing companies around the world.

As a follow up to the posts on rankings and competitiveness drivers identified in the study, I also wanted to take a deeper look at how global manufacturing companies can succeed, which you can learn more about in the full study.

Five tips for global manufacturing success

Here are five key insights from the report that manufacturing executives should consider to position their companies for future competitiveness:

  • Ensure talent is “the” top priority: A focus on creating differentiated talent acquisition, development and retention strategies to be regarded as “employers of choice,” as well as identifying and nurturing new models of collaboration that leverage key sources of talent outside of the organization will be key. As talent is ranked as the most important driver of competitiveness by executives around the world, the competition among nations and companies is expected to be fierce.
  • Embrace advanced technologies to drive competitive advantage: Advanced technologies are increasingly underpinning global manufacturing competitiveness. Leading 21st century manufacturers have fully converged the digital and physical worlds where advanced hardware combined with advanced software, sensors, and massive amounts of data and analytics is expected to result in smarter products, processes, and more closely connected customers, suppliers, and manufacturing. Predictive analytics, the Internet-of-Things (IoT), both smart products and smart factories via Industry 4.0, as well as the development and use of advanced materials will be critical to future competitiveness.
  • Leverage strengths of ecosystem partnerships beyond traditional boundaries: Adoption of innovation strategies aimed at embracing a broader ecosystem approach, developing and taking advantage of integrated manufacturing and technology clusters and partners, will be a growing imperative going forward. Competitiveness will be directly correlated to the strength and robustness of an organization’s collaborative networks and eco-systems.
  • Develop a balanced approach across the global enterprise: Increasingly sophisticated tools and strategies will be required to optimize the global manufacturing enterprise from a talent, technology, operational, financial, tax and regulatory perspective. The core of this approach is achieving a successful balance across a variety of drivers, including talent management, innovation portfolio, cost competitiveness, manufacturing footprint and supply chain in challenging and rapidly evolving new markets. Indeed, both leading companies and countries are taking a more balanced approach by building a foundation for growth across multiple drivers of global competitiveness.
  • Cultivate smart, strategic public private partnerships: Governments are becoming increasingly aware of the significant benefits a manufacturing industry provides to national economic prosperity. Likewise, manufacturing companies are keenly aware of the role government policy can play in their success. Therefore, many nations with unfavorable or overly bureaucratic manufacturing policies are working to improve and reform those, invest in greater economic development, and strengthen overall manufacturing infrastructure, while seeking to partner in more productive ways with businesses. Leading companies, in turn, are targeting new, smart and strategic public/private partnership models to help drive improvements not possible alone, resulting in non-traditional business-public sector alignments as the global competitive playing field undergoes a significant transformation at both the company and country level.

In summary, our full study offers a critical and timely jumping-off point for companies and economies as they make strategic investments in advanced manufacturing technologies and enact public policies designed to spur post-industrial era manufacturing growth. We hope, both government heads and company CEOs adopt key takeaways from this study to reshape the future of manufacturing.

Be sure to visit our GMCI Interactive Website to drill down into additional findings.

 

If you didn’t have an opportunity to view the first two post in the three part series, please be sure click the following links to read about additional findings from the Global Manufacturing Competitiveness Index study: competitiveness rankings and drivers of manufacturing competitiveness.

Join the conversation on @DeloitteMFG #GMCI16

2016 Global Manufacturing Competitiveness Index examines key drivers of competitiveness

Posted by Michelle Drew Rodriguez

In the first blog post I recently wrote about the 2016 Global Manufacturing Competitiveness Index, which I coauthored with several colleagues at Deloitte (including Craig Giffi, Vice Chairman, US Automotive Leader and Tim Hanley, Global Manufacturing Leader) and in collaboration with the US Council on Competitiveness, I primarily discussed country rankings revealed in the Index. The study is modeled from earlier versions we released in 2010 and 2013, and the findings are based on an in-depth analysis of survey responses from more than 500 chief executive officers and senior leaders at manufacturing companies around the world. A number of interesting findings arose this year.

Continue reading “2016 Global Manufacturing Competitiveness Index examines key drivers of competitiveness”

US manufacturing competitiveness rising, set to take no. 1 spot from China by 2020

Posted by Michelle Drew Rodriguez

In a study I recently coauthored with several colleagues (including Craig Giffi, Vice Chairman, US Automotive Leader and Tim Hanley, Global Manufacturing Leader) and in collaboration with the US Council on Competitiveness, executives indicated the United States is expected to be the most competitive manufacturing nation, moving China into the number two position by 2020. The study-2016 Global Manufacturing Competitiveness Index-by Deloitte Touche Tohmatsu Limited (Deloitte Global) and the Council on Competitiveness (Council)-follows earlier studies we released in 2010 and 2013. This year’s rankings are based on an in-depth analysis of survey responses from more than 500 chief executive officers and senior leaders at manufacturing companies around the world, and a number of interesting findings arose.

Continue reading “US manufacturing competitiveness rising, set to take no. 1 spot from China by 2020”

Additive manufacturing: where it’s been, where it’s going

Posted by Monika Mahto and Geetendra Wadekar

For quite some time, we’ve been following the many ways in which 3D printing has entered our lives. More and more we see companies using AM technologies to make products stronger, smaller, faster, better, or cheaper. In terms of industry applications, at a basic level, AM is helping people build a car and a home. More notably, the technology is helping to save lives. Here we present five of the noteworthy developments in additive manufacturing so far.

Advancing AM technologies–improving existing technologies or developing new ones

In the past year, several AM technologies were developed in conventional and hybrid manufacturing that promise to improve product quality and could lead to cost savings in the coming years. Continue reading “Additive manufacturing: where it’s been, where it’s going”

Lower supply chain costs should be taking the additive manufacturing spotlight

Posted by Kelly Marchese

I’m pretty excited about developments in 3d printing that mean I may soon be able to order a bespoke running shoe. A recent Fortune article highlighted the impact 3D printing is having on the running shoe business–allowing customers to completely customize their shoe design from the foot bed on up. This is a win-win for consumers and running shoe manufacturers. Can you imagine a pair of shoes fitted to your feet’s idiosyncracies? Bliss. Sign me and my arches up.

But, behind the headlines of the running shoe story lies a supply chain cost-saving story about additive manufacturing and the opportunity to capture tremendous value within the 3D supply chain. The win for running shoe manufacturers using 3d printing is the time–hence cost–saved by printing on demand and removing the steps required when using molds, or carrying large inventories. Continue reading “Lower supply chain costs should be taking the additive manufacturing spotlight”

A square deal for 3D printing intellectual property creators

Posted by Vikram Rajan

As the general public becomes more aware of the game-changing capabilities of additive manufacturing (AM), some very creative minds are pushing the envelope and exploring new product designs and new ways of manufacturing old products. Their work is critical, driving AM innovation that unshackles product and part design from the restrictions of traditional manufacturing. This brings AM intellectual property (IP) considerations into the limelight. (Check out “3D opportunity for intellectual property risk” to see how this topic that offers significant opportunities and challenges.)

Beyond innovative product design, AM portends even greater changes. This is because with AM the value of a product rests in the design–the manufacturing can be performed by any business or individual with a 3D printer capable of handling the print job. Transmitting product designs, which boils down to just digital information, to anyone who is interested can be done between potential end users.  This  might dissuade designers from investing time and effort into creating new products. Serious thought should be given to finding a sustainable way forward that is designed to keep both designers and customers incentivized. Without this, it may be difficult to turn AM into a universally adopted manufacturing method, taking it past the realm of rapid prototyping and novelty knick-knacks.

Continue reading “A square deal for 3D printing intellectual property creators”

When product design makes the leap to digitally optimized design

Product Design
Posted by Brenna Sniderman

I’ve been reading a lot about 3D printed things lately, and thinking in wonder about how much more complex they seem to be getting. There’s the 3D printed car 1, the 3D printed bridge (created in mid-air) 2, 3D printed skin—it just seems to keep getting more and more complex, more and more sci-fi. More and more . . . well designed?

The role of additive manufacturing (AM) in product design has long been an important one. AM has traditionally been used for rapid prototyping, so much so that the two terms have often been used interchangeably, even if they don’t mean quite the same thing. And yes, companies routinely use AM for this very purpose, to positive effect.
Continue reading “When product design makes the leap to digitally optimized design”