Global Manufacturing Outlook: Growth while Managing Volatility 

In an age and industry where volatility has become a given, Diversified Industrials (DI) companies – accustomed to cyclical swings and continuous volatility – are preparing for the long haul and positioning themselves for growth while staying focused on mitigating and managing costs.
growth ahead
Growth ahead, but risks loom
Despite continued volatility, executives at major manufacturing firms are cautiously optimistic that they can realign their businesses toward top-line growth while managing the multitude of cost challenges.
Price pressures
Price pressures
Price volatility of key inputs and raw materials is the number-one challenge identified by manufacturers for the year ahead. These cost concerns are exacerbated by intense competition and pressure to keep prices down.
New sourcing and demand dynamics
New sourcing and demand dynamics
The push toward emerging markets continues, but does not imply the demise of manufacturing in the West as the US topped this year’s list for expected demand in the next 12 to 24 months, barely edging out China.
Products & Priorties
Products, priorities & the pursuit of growth
Directly aimed at supporting the push into new markets, manufacturers will prioritize the localization and adaptation of products and seek to standardize production processes across all sites.
Shift to standardization
The shift to standardization
Diversification into new markets and new products will converge with a push toward input and process standardization, enabling more efficient coordination, cooperation and collaboration.
Reworking supply chains
Reworking supply chains to support growth
Investment in supply chain risk management will continue, with a particular focus on transparency.

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