none

Manufacturers plan big boost in R&D spend globally

29-05-2014
by 
in 

Almost half of the manufacturers globally plan to double their investments on research and development in the next two years, according to a new survey conducted by KPMG.

And the majority of them feel partnerships will drive innovations, the survey has found.

According to KPMG's 2014 Global Manufacturing Outlook, 88 percent of the manufacturers feel that partnerships will drive innovations, while 40 percent acknowledge limited visibility across the supply chain.

Only 12 percent of the manufacturers are "very effective" at determining product profitability.

In the report KPMG said manufacturers are entering a new era of "disruptive complexity" which is fundamentally changing the way manufacturers compete and succeed.

"Over the past few years, manufacturers have seen an explosion of new technologies and innovative developments in material science, advanced manufacturing and synergistic operating models," said Jeff Dobbs, global chair, Industrial Manufacturing and a Partner with KPMG in the US.

"With this accelerating pace of change, manufacturers the world over are now starting to take stock of the more complex world that they are operating in, and are using that insight to redefine the art of the possible," Dobbs said.

This fifth annual Global Manufacturing Outlook, Performance in the Crosshairs, was completed in early 2014 and surveyed 460 senior executives across six industrial sectors split equally among the Americas, Europe, Middle East and Africa and Asia-Pacific.

In an attempt to capitalise on this environment, manufacturers say they will dramatically increase spending in research and development, pursue new collaborative business models and integrate new technologies to analyse and stimulate profitable growth.

"In India, companies are keenly focused on collaborating with supply chain and logistics providers to improve reliability, enhance capacity and reduce costs by identifying and maximising process and business practice innovation," said Richard Rekhy, chief executive officer, KPMG in India.

On integrating the supply chain, SV Sukumar, partner and head of operation and supply chain, KPMG in India said: "In India, planning has always been the weakest link for quite some years now. Given many unpredictable factors associated, planning will have to be even more robust."

"The successful integration and hence the visibility of the entire supply chain will call for a significant change in the way organisations manage their planning and execution," Sukumar said.

Related news & editorials

  1. Conymet Duratray
    08.04.2021
    08.04.2021
    by      In
    Cranbourne Victoria will become the centre for an internationally supported manufacturing facility that will create up to 100 new highly skilled jobs.
    Minister for Economic Development Tim Pallas welcomed the decision by Conymet Duratray International to grow its current Victorian footprint by... Read More
  2. Australian made logo
    07.04.2021
    07.04.2021
    by      In
    Calls for buyers to support local manufacturing by choosing Australian made goods have gained momentum with the announcement of an Australian Made Campaign Week (AMCL) for May this year.
    AMCL is encouraging shoppers to actively focus their purchases on genuine Australian made products, helping to... Read More
  3. globe
    06.04.2021
    06.04.2021
    by      In
    The ongoing demand for iron ore and growth in technology-related commodities such as lithium, nickel and copper are set to drive a recod $296 billion in export earnings for 2020-2021, according to latest reports.
    The Resources and Energy Quarterly from the Department of Industry, Science, Energy... Read More
  4. 06.04.2021
    06.04.2021
    by      In
    The school holidays are upon us, and the Australian Made Campaign wants shoppers to look for the iconic Australian Made logo on all their Easter holiday purchases.
    You can find the green and gold kangaroo on furniture, bakeware, gifts, camping equipment, toys, outdoor play equipment, and thousands... Read More
Products
Suppliers