2022-01-25-KPMG_Global-Global_manufacturing_prospects_2022_20页_989kb

Global Manufacturing Prospects 2022 Summary

CEO View: Supply Chain Resilience & Twin Transformation

According to a KPMG International survey of 146 large manufacturer CEOs, resilience and investment in new technologies are driving a "twin transformation" focused on smart digitization and environmental, social, and governance (ESG) goals. The pandemic highlighted the vital importance of resilient supply chains and the need to leverage new technologies to withstand disruptions while capitalizing on opportunities.

Resilience

CEOs identified strengthening supply chain resilience as their top priority. Key strategies include deepening monitoring into supply chains (down to tier 4 suppliers), diversifying sources of input, and near-shoring to mitigate geopolitical risks. Resilience was selected as the primary risk threat by 68% of CEOs over the medium term, compared to other risks such as operational instability (13%) or environmental change (9%). Digitization and agility are crucial for enhancing supply chain management.

New Technologies’ Dual Role

Technology investments, including artificial intelligence (AI) and blockchain, play a dual role: reducing vulnerability and enabling faster recovery from disruptions. AI enhances real-time demand and supply visibility and supports risk management. Blockchain offers potential for transparent tracking but is not yet universally viable. Strategies using geolocation and digital marketplaces can increase connectivity, visibility, and speed. Cybersecurity is also critical, with CEOs prioritizing secure supplier ecosystems and fostering an informed workforce.

Renewed Sense of Purpose & ESG Focus

CEOs reported a stronger sense of purpose post-pandemic, with 77% feeling a deeper emotional connection to their company’s mission. There is a shift from short-term shareholder returns to long-term stakeholder-driven value, though ESG integration faces challenges. 67% of CEOs believe long-term stakeholder returns is their primary focus, nearly five times more than economic returns to shareholders. ESG is seen as a means to attract talent and customers rather than a direct driver of financial performance (31% agree ESG improves financial performance, while 54% find it neutral). Companies are investing between 1-5% of revenue for sustainability goals and advocating for government support like tax incentives for ESG initiatives. Decarbonization is critical, with Japan, Norway, and the UK leading in readiness scores.

ESG to the Fore

ESG is paramount for supply chain security and long-term strategy. While CEOs express urgency, ESG's implementation is complex. Investment in sustainable operations is on the rise, with governments and industry (e.g., aerospace) collaborating on green technologies.

More Training and Greater Skills

Skills shortages are addressed through workforce development and technology integration. 84% of CEOs plan workforce growth in the next three years, with 45% investing in skills training to meet demand and combat post-COVID recruitment challenges. Training programs, alongside appropriate technology use, are deemed key to supporting hybrid work models, employee engagement, and team cohesion. Workforce development in STEM and training hubs has been noted in sectors like aerospace to retain talent.

Profiting in Adversity

The pandemic opened opportunities for disruption, not just threat. 70% of CEOs are proactively transforming their industry, and they are pursuing M&A, alliances, and organic growth to position themselves for the future. CEOs show appetite for transformative transactions, including breaking down companies and investing in innovative firms (like 3D printing firms) to drive change and create competitive advantages.

Conclusion

Supply chain resilience and the adoption of intelligent technologies are paramount. Digital transformation and ambitious ESG goals represent a synergistic "twin transformation." Companies must shift focus everywhere from logistics and supply chain management toward intelligent digitization and ESG.”

(End of Summary)