Manufacturing_Index_2017_AM_HR

TIMES ARE CHANGING – KEY CONSIDERATIONS AND QUESTIONS MUST BE ADDRESSED

MANAGING CHANGE POSES A NUMBER OF CHALLENGES AND QUESTIONS

COMPANIES ARE SIMPLIFYING THEIR ORGANIZATIONAL STRUCTURES AND RE- POSITIONING AS MORE AGILE BUSINESSES The ability to respond quickly in an ever-changing environment remains a key to success. But in a sector reliant on heavy capital investment in plant and facilities how do you retain flexibility? LOOMING TALENT SHORTAGES ARE DRIVING BUSINESSES TO REPOSITION THEIR BRANDS Brand reputation is often critical in talent attraction and retention But where are the next generation of workers with the right skills?

SUSTAINED PRESSURES ON OPERATING COSTS AND A SHIFT IN END-MARKET DEMAND Continues to drive a relentless need for manufacturers to increase labor and capital productivity But what type of labor is required, and how do you attract and retain the up-skilled workers able to drive efficiencies from the production line of tomorrow? TRADITIONAL SUPPLY CHAINS AND BUSINESS MODELS CONTINUE TO BE DISRUPTED New competitors leverage emerging technologies and embrace digital capabilities in order to identify new ways of increasing profitability to generate growth. But in which markets are the cost advantages of a more productive, automated plant likely to increase a locations ability to drive on-shore or re-shore initiatives alongside acting as a global manufacturing hotspot? A NECESSITY FOR SMARTER PRODUCTS, SMARTER PRODUCTION AND SMARTER SUPPLY CHAINS Further changes anticipated with Industry 4.0 But how can the blend between the physical and digital world be leveraged? How do businesses position themselves to match the increasing demands of consumer markets? “A necessity for smarter products, production and supply chain management continues to challenge manufacturers and their decisions of where to locate.”

Brand risk and reputation – What other criteria is being considered

Brand image and corporate reputation continues to be an important contributor to business strategies. While a brand’s image has a more specific influence on the customers’ perceptions of product and/or service quality, the company’s reputation has a broader influence on perceptions of customer value and customer loyalty. While our Manufacturing Index covers a number of macro risk factors, it is possible and indeed necessary to asses a number of other local factors for manufacturers seeking to acquire space - such as those surrounding quality control, regulation, certification and inspection of the assets occupiers operate from within. The Manufacturing Index can be expanded to include such analysis on a business by business basis.

MANUFACTURING RISK INDEX 2017 / 5