|
6.4 Manufacturing
Worldwide, manufacturing has benefitted from increasing globalisation, causing
major changes in emerging markets. Manufacturing capacity has shifted from
developed economies towards those in emerging markets, and new competitors are
quickly arising. In countries like Vietnam, manufacturing still represented 72% of
total registered foreign direct investment in 2014, and the industry employed 14% of
the entire workforce (2013 Labour Force Survey). Important developments, mainly
a regional shift away from China to avoid various risks and costs associated with
over-dependence on the country, have opened interesting opportunities in the sector
(Smith, 2014). As Moavenzadeh et al, (2012) argue, manufacturing remains
important to the prosperity of all nations, with over 70% of income variations in 128
countries derived from differences in manufactured products’ export data
However, the traditional models of manufacturing are being discarded in favour of a
digital transformation accelerated by innovation and rapidly developing technology.
No longer are companies simply manufacturing products at one or two locations to
satisfy demand, the new manufacturers are nimble and responsive to shifting demand
for specialised products and individualisation of goods, taking advantage of the
digital revolution to diversify more than ever. Again, the “internet of things”
combining mobile technology, big data, and skilled specialists are changing the
game. Even now, commentators are using the term ‘industry 4.0’ to discuss the
current fourth industrial revolution (Deloitte, 2014). This revolution features
technologies that were unimaginable only a decade prior — 3D printing, model-
based definitions (or the practice of using models within 3D CAD software to provide
specifications for individual components and product assemblies)
,
and supply chain
digitalisation are only a few of the disruptive technologies rewriting the rules of the
game. Conventional progression through development stages is no longer assured as
barriers to manufacturing such as lack of infrastructure or communications are
sidestepped by innovation.
Developing countries without legacy capital are hurriedly taking advantage of the
new game. Paraguay, a landlocked country with archaic infrastructure, has an
extremely small industrial base. Thanks to the commercialisation of 3D printing
technology, however, Po Paraguay – a Paraguayan SME - is now locally producing
prosthesis for low-income people, reducing production, transportation and import
costs (Rios, 2014).
3D printing is one of the key technologies that will disrupt the traditional market. By
lowering costs and increasing efficiency, 3D printing is dramatically reducing
product development cycles. Manufacturers are now able to produce highly-
customized parts on demand, foregoing the need for intensive capital. Technology-
intensive production has freed manufacturing from the need for single-source
factories — products are designed, produced, and sold across regions. Open trade
and the free flow of digital information has shifted the supply-and-production chains,
as companies procure lowest cost materials in one location, ship to another to
produce, and sell in yet a third. Engineers for these products may not even be based
in the same country where the product is produced, thanks to innovation, freeing
companies to hire where skill sets are already developed (KPMG, 2014;
Moavenzadeh et al, 2012).
Trends indicate the digital revolution in manufacturing is here to stay. “Smart”
products and processes will rely more and more on advanced computer chips and
Jobs for the Future 26
software—users will see less traditional goods and more digital products, such as
those produced by 3D printing. Profound changes in human and financial capital,
innovation, and the nature of competition between companies and nations will be
commonplace in the coming decades (Deloitte, 2014).
However, this revolution will require skilled employees to power economic change.
Almost 10 million jobs in the sector remain unfilled around the globe due to the skills
gap (World Economic Forum and Deloitte, 2012). In Vietnam, large manufacturing
companies have reported that they find it difficult to recruit technical staff as
potential recruits unfavourably compare salaries offered with potential greater
income from self-employment or small business. While developing countries wrestle
with high unemployment, their workers often lack the necessary skills to assume
high-tech positions. Talent may become scarcer, and the competition to secure it will
be even more intense. Those companies that can attract the top talent — scientists,
engineers, researchers, technicians, and the like — will emerge as frontrunners in a
global competition. Skills and talent will be the ultimate breaking point for
companies, as actual production shifts easily in a globalised world. The 2010 Global
Manufacturing Competitiveness Index identifies talent-driven innovation as the
single most important driver of manufacturing competitiveness. This talent-driven
innovation is a reckoning of both the quality and availability of a nation’s skilled
workers, educators, scientists, researchers, and engineers who, “collectively have the
capacity to continuously innovate and, simultaneously, improve production
efficiency.” In this survey of over 400 CEOs around the world, the majority agree
that talent is a more important driver of manufacturing growth and competitiveness
than simple access to low-cost labour.
Do'stlaringiz bilan baham: | 
