17 Issues for 2017
The newest member of the SEWN team, Deb Lutz, Erie Regional Director, recently attended a webinar sponsored by Industry Week entitled, "What Issues Will Challenge You in 2017?"
The following is Deb's synopsis of that webinar.
17 ISSUES FOR 2017
Are you ready for the challenges and changes that will be coming in 2017?
Will the skills gap continue to plague manufacturing and what can you do about it?
Is digitalization a means to improved productivity or the path to new revenue?
How do manufacturers translate data from sensors into automated actions and insights?
How can manufacturers overcome risks of commoditization and create differentiation?
Should B2B industries care about the customer experience too?
In a recent webinar hosted by Industry Week, three industry insiders have answered these questions and more and have provided their predictions on what to expect in 2017. All three insiders predict that 2017 will be another banner year for manufacturing and all signs point to tremendous opportunity!
Brian Raymond, Director, Innovation Policy for the National Association of Manufacturers (NAM)
NAM is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial state in all 50 states.
1. 2017 is Manufacturers' Moment
2. Technology will Continue to Disrupt Manufacturing (in this case, disruption is a positive)
67% of manufacturers will see an increase in shop floor productivity
More than 1/3 will offer completely different markets/product lines
60% will speed up time to market and improve development
1 out of 2 will enable new business models and new revenue streams
2/3 will increase their long-term outlook
67% will differentiate products/service offerings
3. Innovative Infrastructure
Major attention from Congress and President Trump
Infrastructure is broader than just roads and bridges
Innovation infrastructure is critical to growth
4. Cybersecurity will continue to dominate
Connected technology is everywhere - security needs to keep up
Expanded threat landscape
Cybersecurity is now and issue Boards of Directors focus on
Cyber espionage is a concern
Regulatory clarity is needed
Strengthen government outreach to smaller manufacturers
Government funding for IoT (Internet of Things) security research
Look at best practices to manage global supply chain cyber risk
5. Target on Intellectual Property (IP) Expands
IP is manufacturing's most valued asset
Envy of competitors
IP theft is a major threat to the economic leadership of any industry
Leverage new Trade Secrets Act passed in 2016
IP Protections must be included in international agreements
Reduce abusive patent lawsuits in the U.S.
6. Public-Private Partnerships (PPPs) Will Continue to Support Growth
Public-Private Partnerships should remain a priority
Industry-led is the key to success
Manufacturing Extension Partnership (MEP)/Manufacturing USA Partnership is working and a great PPP example
Long-term commitments needed for manufacturers' growth
Intellectual property protection
Lee Hopley, Chief Economist, EEF
EEF works to support and champion manufacturing and engineering in the UK and Europe.
7. Brexit Won't Trigger an Investment Collapse for Manufacturers
Manufacturers' investment plans will not be affected over the next year.
Largely, business as usual
Over 3/5 of manufacturers surveyed by the EEF are not delaying investments as a consequence of Brexit uncertainty
UK manufacturers are focused on the here and now, and meeting the needs of their customers
8. Sterling (Exchange Rate) will Remain Competitive for UK Exporters
53% of manufacturers identified weaker Sterling as a business opportunity after the referendum (source: EEF EU referendum survey)
Manufactured exports up 11% for the year up to November (source: Office for National Statistics)
Net trade expected to make positive contribution to GDP growth in 2017
86% of manufacturers see potential business risks from exchange rate
9. Global Trade Growth will be Less Supportive
Over the last five years, results have been consistently disappointing.
Growth in world trade subdued in recent years, far below pre-crisis levels
Trade/Income Relationship: elasticity of world trade to world GDP has been weakening in recent years
10. UK Manufacturers will Still Continue Their 4IR (4th Industrial Revolution) Journey
4IR will make manufacturing smarter.
Smarter supply chain
Starting with optimizing supply chains
Only 11% of companies think that the UK is geared up to take advantage of 4IR
11. Manufacturing Growth Will Not be the Only Story for all UK Industry Sectors
EEF forecasts a modest 0.2% contraction in UK manufacturing output in 2017 after a 0.2% gain in 2016.
UK Top Performing Sectors in 2016
Food and drink
Chemicals and pharmaceuticals
.....And the Laggards
Mark Humphlett, Senior Director, Industry and Product Strategy, Infor
Infor is an enterprise software provider and strategic technology partner for more than 90,000 organizations worldwide.
12. Manufacturers will Stop Incubating and Start Accelerating on Servitization - serving your existing business customers and making sure that they are happy versus recruiting new customers
Every industry is being impacted by the digital services it provides
Manufacturers must have a digital strategy in place by 2020
13. Cloud Adoption will Continue - it is not a question of if but when you are going to adopt Cloud technology
Of the four transformational shifts, Cloud is the engine of them all!
14. Supply Chain Visibility Becomes Real
80% of data needed to effectively run a global supply chain resides with partners such as:
15. Manufacturing Talent will Become More Tech-Savvy - and More Sought After
78M people will retire in the US over the next 10 years
Approximately 1 in 3 US workers was born into the Millennial Generation - Millennials expect customer-like experience
82% of manufacturing CEOs say the skills gap will affect their ability to meet customer demand (source: National Manufacturing Institute)
16. Digital Transformation for Differentiation will be More Important Than for Improving Operational Efficiency
Automation - Digitizing a process or an experience to make it more effective and impactful for the connected business age
Differentiation - Rethinking business and creating new data-driven ways to deliver an elevated experience, service or product.
Customer engagement is where differentiation will emerge
17. Chief Information Officers (CIOs) will Become CEOs (Chief Experience Officers)
CIOs will re-focus activities from tasks to experiences.