2014 Global Manufacturing Outlook Performance in the crosshairs

The 2014 Global Manufacturing Outlook report examines the evolution of strategies manufacturers

are deploying to drive value across the enterprise

Global Manufacturing Outlook report key findings:

Looking for profitability

Manufacturers are focused on understanding cost and profitability

(85 percent cite product or service cost improvements as the biggest investment priorities.)

say they will place a moderate to high priority on adopting real-time processes to measure product cost and profitability

More than 50%

Only 12% of respondents say they were “very effective” at determining product profitability

12%

“This isn’t simply about mining data and building spreadsheets; it’s about accessing the appropriate information, at the right level of granularity and – maybe most importantly – with the right speed and frequency to generate timely insight to help people make better business decisions.” - Jim Scalise, Management Consulting Partner, with KPMG in the US

Global Manufacturing Outlook report key findings:

Collaborate to Innovate

Organizations are rethinking their product development strategy

“Ultimately, those organizations that do not balance investment in ‘incremental innovation’ with investment in ‘breakthrough innovation’

may find themselves left behind technologically.” -Jeff Dobbs,

KPMG Global Sector Chair, Industrial Manufacturing

of respondents said they would double their level of spending in R&D

70%

said that partnerships, not in-house efforts, would form future innovations

88%

Collaboration will also reduce time to market

Say they are adequately leveraging decision-support technology in their R&D Function

75%

say 3D printing technology is dramatically reducing their product development life-cycle

81%

“Those that are focused on collaboration for purely economic necessity are finding that their drive to become smarter, faster and better through collaboration has made them pioneers in creating more integrated and connected businesses.” - Dr. Gerhard Dauner, Head of Industrial Manufacturing for Europe,

Middle East and Africa, KPMG in Germany

Global Manufacturing Outlook report key findings:

Integrating the Supply Chain

Supply chain transparency and visibility remain a key challenge for manufacturers

say lack of visibility was due to inadequate IT systems

36% Admit they lack visibility across their extended

supply chain

40% why what

A majority of respondents think they could achieve a globally integrated supply chain

within the next 3-5 years

say they use global demand and capacity planning in their supply chain enterprise-wide

MORE THAN

50%

say their relationship is now strong enough to share real-time capacity and demand data

MORE THAN

3/4

“You simply can’t build the type of relationship you need to share real-time data without trust.” - Osamu Matsushita, KPMG Industrial Manufacturing Leader for Japan

KPMG’s Industrial Manufacturing Major Country Leadership:

Download the report or use the online interactive tool to see results by country and industry