How the industry views its emerging risks and challenges
This is a time of huge transformation and possibility in manufacturing, as smart technologies make production greener, safer and more efficient. But it’s also an era of extraordinary volatility, uncertainty and risk.
As the industry heads into the second half of the 2020s, both of these realities hold true. Advanced manufacturing systems offer huge potential to optimize operational efficiency, manage supply chains and respond to fast-changing demand, while improving sustainability.
On the other hand, threats such as trade wars, cyber security, economic instability and supply chain disruption loom ever larger in a more uncertain world, putting pressure on profitability and growth.
Sustainability is top opportunity
63% ranked sustainable manufacturing among their greatest business opportunities, signaling a desire to turn change into business advantage and use its potential to attract customers and investors.
Cyber is biggest risk factor
53% named cyber security among their greatest risks to business success, while 60% said it was their biggest supply chain risk, reflecting a rise in malicious activity by criminals and state actors.
Fears of trade barriers are rising
76% of manufacturers said trade disputes and protectionism were among their greatest geopolitical concerns as political instability increases uncertainty for businesses and supply chains.
Product liability uncertainties grow
41.5% did not agree that it’s clear who is responsible when a product fails between them, the component supplier or software developers, posing contractual and liability concerns for makers of complex products.
Managing risks is more challenging
12% said their ability to manage and mitigate their risks was completely within their control, suggesting firms are facing a widening range of external factors beyond their ability to influence.
In our global manufacturing survey, we asked 400 senior decision-makers from around the world how they view this conflicting and fast-changing landscape, what they see as their greatest challenges and opportunities, and how they are managing their risks and building resilience for the future.
We found that fears about cyber security dominate as dependence on technology increases, with malware attacks and the threat of grey zone aggression by state actors rising. But there is optimism, too, about the opportunities of sustainable manufacturing and the potential of technologies to deliver efficiencies and unlock solutions to the risks and issues manufacturers face.
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