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KSM Blog | Katz, Sapper & Miller CPA

The Future of Manufacturing Part II

Posted 12:00 PM by

Manufacturing the future: The next era of global growth and innovation, a major report from the McKinsey Global Institute, sheds some light on the direction the manufacturing industry is heading. The study points out the following:

  • Manufacturing is vital to the global economy. It helps to drive growth in local economies and helps to improve the standard of living across the global. However, the nature of manufacturing is changing. As an economy matures, the role of manufacturing in that economy must change as well. In an advanced economy, manufacturing must shift from focusing solely on job growth and GDP growth, to promoting innovation, productivity, and trade amongst other economies.
  • Manufacturing is no monolithic. McKinsey has identified five board segments that manufacturers can be divided into: 1) Global innovation for local markets; 2) Regional Processing; 3) Energy/resource-intensive commodities; 4) Global technologies/innovators; and 5) Labor-intensive tradable
  • The line between manufacturers and service providers is becoming more blurred with technology and advanced manufacturing.
  • The role of manufacturing in job creation is changing as the industry shifts away from low-skilled workers to high-skilled works that can drive advanced manufacturing to a new level.
  • As manufacturing shifts new opportunities will arise, but they will not be the same opportunities that have come in the past. Manufacturers must position themselves to look for and take on these new opportunities in a more complex and uncertain environment than the past.

About the Author
Justin Hayes is a director in Katz, Sapper & Miller’s Audit and Assurance Services Group. Justin works with clients to help ensure accurate financial reporting, keeping an eye on their bottom line, helping them avoid risk and maximize efficiencies. Connect with him on LinkedIn.

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