Posted on Mon, Aug 3rd, 2015 in: Industry
It might not be readily evident to the lay person, but the Manufacturing industry's share of global GDP is 16%. A whopping 30%-55% of all service jobs are in the manufacturing sector. Additionally, because of rapid technological innovations worldwide, including the growth of Machine-to-Machine connections (M2M) also known as "The Internet of Things," we are going to see manufacturing output grow even more in the coming years.
A decade into the 21st century, the role of manufacturing in the global economy continues to evolve. Think Tank firm McKinsey Global Institute sees a promising future, noting recently the following: "Over the next 15 years, another 1.8 billion people will enter the global consuming class and worldwide consumption will nearly double to $64 trillion. Developing economies will continue to drive global growth in demand for manufactured goods, becoming just as important as markets as they have been as contributors to the supply chain. And a strong pipeline of innovations in materials, information technology, production processes, and manufacturing operations will give manufacturers the opportunity to design and build new kinds of products, reinvent existing ones, and bring renewed dynamism to the sector."
Indeed, the factors they describe point to an era of truly global manufacturing opportunities and a strong long-term future for manufacturing in both advanced and developing economies. The new era of manufacturing will be marked by highly agile, networked enterprises that use information and analytics as skillfully as they employ talent and machinery to deliver products and services to diverse global markets. In advanced economies, manufacturing will continue to drive innovation, exports, and productivity growth. In developing economies, manufacturing will continue to provide a pathway to higher living standards.
As long as companies and countries understand the evolving nature of manufacturing and act on the powerful trends shaping the global competitive environment, they can thrive in this promising future.