2024-02-29-KPMG_China-全球工业制造行业首席执行官展望_7页_2mb

KPMG Global Industrial Manufacturing CEO Outlook Summary

In 2024, industrial manufacturers expect to address the low-growth environment by focusing on digitization, ESG, and portfolio reshaping. CEO optimism about the economy increased, with confidence rising by 5 percentage points year-over-year, partly due to easing supply chain disruptions, normalizing costs, and plateauing interest rates.

Growth expectations are low, with only 39% of surveyed CEOs anticipating more than 2.5% annual growth over three years. A key priority for achieving growth is advancing Industry 4.0 and connectivity, with 69% of CEOs prioritizing it. ESG is also a major focus, with many recognizing its role in attracting talent and potential financial benefits, such as reduced capital costs, leading 71% to consider divesting assets that harm ESG image.

There is a trend toward strategic M&A, with 88% of CEOs expecting their organizations to make acquisitions in the next three years, mostly due to stable market conditions and financing availability. Companies are likely to focus on core strengths and restructure portfolios.

However, challenges include potential struggles for "zombie" companies accessing financing, and CEOs need to drive transformation through digitization, ESG, and inorganic growth to achieve outpaced growth. Ignoring ESG risks includes threats like difficulty raising finance, disengaged employees, and loss of customers.

In summary, while 2024 offers opportunities through digital transformation, ESG integration, and strategic acquisitions, it requires bold actions from CEOs to navigate risks and drive deeper change in the industrial manufacturing sector.