October 4th marks World Manufacturing Day, and in the last few weeks, the world’s manufacturing sector rankings were announced. They show that while the USA remains a dominant force, countries like the UK dropped out of the global Top 10. It seems the contours of the global economy are being redrawn. It’s important to understand the factors and trends responsible for this shift.
The findings come from the latest annual ‘Manufacturing – The Facts’ that details a wide variety of data about the contribution of manufacturing to the economy, including exports, sectoral breakdowns, how the UK compares to other nations and salary levels.
In a world where the assembly line reigns supreme, the global manufacturing sector is a major job creator – employing over 2.7 billion people globally – and also contributing 11.4 percent of gross domestic product (GDP). The industry has reached a critical inflection point, with skilled labor shortages, rising overheads, supply chain disruptions and changing transportation costs being just a few disruptive forces at play.
Disruption on a global scale
While these rankings might at first glance tell a regional story, globalization makes this a broader concern. UK trade bodies and commentators have been quick to offer their views.
According to Make UK the data reinforces the need for the UK to adopt a long-term industrial strategy. Simon Wharton, founder of e-commerce agency PushON commented, “competitors, like Taiwan and Germany, have been more agile and strategic in leveraging technology and innovation to boost their manufacturing capabilities.”
Dr. Graham Hoare OBE, Chief Executive Officer at the Manufacturing Technology Centre (MTC), said, “This is a major body blow to UK manufacturing. We are home to some of the most innovative manufacturers and research facilities in the world. We must do everything possible to harness this expertise to reinvent ourselves as a manufacturing superpower.”
The importance of a long-term strategy that includes technology & innovation
They’re not wrong. To address this, manufacturers around the world need to couple a clear long-term strategy with an immediate focus on operational efficiency, cost control and organizational excellence to grow and thrive. In an ever-changing global economy, agility is everything. And the role of technology and innovation as enablers for financial resilience, improved competitive posture and transformation is not to be ignored.
It’s an approach that is gaining some traction. For example, ongoing digital transformation is driving increased spending on industrial software (the global enterprise asset management market is projected to grow from USD 6.09 billion in 2024 to USD 13.69 billion by 2032, exhibiting a CAGR of 10.9 percent). Statistics from analysts suggest a surge of investment in operational excellence initiatives, cost-cutting programs, consolidation of applications, and elimination of silos.
To keep pace, our customers are leveraging the latest innovations in areas such as artificial intelligence (AI), Internet of Things (IoT), mobile applications, integration with wearables and predictive modeling. But technology for technology’s sake is never the silver bullet. The most important consideration here is using the appropriate tools to deliver tangible business value. And to realize that value in the shortest possible time span.
This is why, particularly when it comes to transformative technology such as enterprise asset management (EAM) software, rapid deployment, ease of use and demonstrable time-to-value are so incredibly important. It’s why customers such as American racing team, AJ Foyt Racing chose our systems for parts management, parts lifing and maintenance.
The consensus is that manufacturers need to invest to grow. In doing so, best practice is to focus on quality improvement and those areas where they can excel and accelerate. Economic rankings are no longer the norm, and simply following the pack no longer acceptable. Future competitiveness depends on the industry’s courage to disrupt and innovate today. To make this a success, further investment in digital skills, embracing automation and fostering a culture where we all dare to be different are imperative.
To learn more about technology trends in industrial business, see our EAM Trend Report. Read our latest customer stories here, or request a free demo.
Frequently Asked Questions
If your organization utilizes capital-intensive assets, IFS Ultimo’s best-of-breed EAM is an invaluable tool for optimizing your asset management. Ultimo excels in manufacturing, logistics, healthcare, infrastructure and utility sectors.
Ultimo excels at managing manufacturing, logistics, healthcare, infrastructure and utility-related assets. The scope of the system is also perfectly suited to combine two or more industry solutions, to make sure all assets within your organization benefit from our best-of-breed EAM product. We even optimize asset management for the BEAT Cycling team in the Netherlands and the AJ Foyt Indy 500 racing team in the United States.
IFS Ultimo offers clarity about your assets, in terms of hierarchy, relation and location. By registering all relevant information about your assets, you build towards a greater understanding of your assets, which will bring you the insight needed to take well-informed decisions to extend their longevity and improve their availability.
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