Key Findings

Supply chain disruptions to persist, adding uncertainty

Geopolitical tensions continue to disrupt the manufacturing sector. It will remain crucial to continue supply chain diversification efforts and increase the operational resilience of existing production networks. This may also present new growth opportunities to emerging economies as they attract new investment.

Focus on localised production networks grows

High production concentration of critical goods and rising economic tensions are further accelerating production reshoring efforts. Production reshoring can provide new growth opportunities for B2B suppliers in both emerging and developed economies.

Cost pressures encourage further automation

Persistent cost pressures are forecast to spark a new wave of production automation, as companies allocate a greater share of their investment budgets to efficiency enhancement tools. Successful strategies can help companies to improve profit margins and gain greater market share.

Workforce upskilling will be critical for future success

Companies will face a shrinking labour pool and a rising skills shortage over the next decade. Investment in training, more flexible work conditions and reviews of production networks will be critical for companies when preparing for future growth.

Greater value from AI tools anticipated

AI tools are forecast to transition from a hyped technology to real-world applications in 2025. Manufacturing companies, facing many pressures across supply chains, are predicted to integrate AI tools into their production networks, supply chain tracking and sales systems.