GENERAL NEWS
Manufacturing at critical inflection point
Fictiv , a global manufacturer , has released its ninth annual ‘ State of Manufacturing Report ’ ( a survey of manufacturing leaders tracking perspectives on the economy ; supply chain ; AI ; sustainability and more ).
Following years of supply chain disruptions , global tensions and a recent drive to adopt AI , the survey indicates that the manufacturing industry is at an inflection point — poised between innovation , growth and the drive to reduce costs and increase profitability .
“ Manufacturing leaders report economic headwinds ( 47 %) as most impacting their 2024 strategy , as well as labour costs and shortages ( 39 %). Other factors include increasing competition , increasing pressure to drive profitability and changes in consumer behaviour and spending . For the third year in a row , improving manufacturing and supply chain visibility ( 54 %) is the top priority for leaders , followed by increasing supply chain resilience and agility ( 48 %),” said the company .
“ Leaders remain excited by AI ( artificial intelligence ) and this year , the emerging technology has become essential to companies in the manufacturing industry . Now , 88 % of companies have implemented AI into their manufacturing and supply chains , and 84 % of those implementations already provide value . Overall , prioritising investments in sustainable manufacturing remains steady for a second year in a row , with 42 % of respondents continuing to cite it as a priority . This is probably because sustainability has been embedded into company values and practices ( 53 %),” it continued .
Image : Shutterstock . com .
“ The last four years have redefined what a world-class operations or supply chain team needs to operate successfully in a tough economic environment ,” added Dave Evans , Co-Founder and CEO of Fictiv . “ It has become the expectation for supply chain teams to decrease costs and get products to market faster , all while doing more with less due to lower expenses as companies push to profitability as their number one metric .... Now , these leaders are battle-hardened and looking for efficiencies everywhere , turning to technology and regionalisation strategies .”
Additional insights include :
■ AI and hiring : 87 % of respondents agree that implementing AI into manufacturing is “... vital to my company ’ s future success .” Notably , nearly half of companies say that AI has enabled them to reduce planned hiring , and 34 % expect AI to impact hiring in the next two years .
■ New product innovation : The focus on increasing the speed of innovation ( 45 %) remains high , and reports of barriers to innovation have decreased across the board . In fact , the number of respondents reporting no barriers ( 15 %) more than doubled since last year to its highest level in four years .
■ Global supply chain : 86 % of respondents say global tensions are long-term planning considerations . However , while it is still important for U . S . manufacturers to on-shore ( 66 %), this trend has fallen since last year ( 77 %), even as diversifying global manufacturing operations have increased this year .
■ Supply chain regionalisation : Increasing U . S . manufacturing ( onshoring ) remains the leading supplychain strategy for the third year ( 66 %), yet it has fallen substantially since last year . At the same time , North American production ( near-shoring ) has increased again this year ( 53 %).
The Dimensional Research report surveyed 178 directorlevel decision-makers . n
www . fictiv . com
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Growth projected for African steel market
According to a new report by Expert Market Research ( EMR ) entitled ‘ The Africa Steel Market Report and Forecast 2024-2032 ’, the market reached a volume of nearly 39.49- million tons in 2023 . The steel market is further estimated to grow at a CAGR of 3.10 % between 2024 and 2032 to reach 51.86 million tons by 2032 .
“ The growth of Africa ’ s steel market is driven by the increasing number of construction projects and rising investments in infrastructure development in the region . Africa ’ s rising population and affluence are driving shifts in consumption patterns , necessitating improved development to meet the changing demand ,” explained the analyst .
In December 2023 , Africa ’ s steel production reached 1.9 million tonnes , marking a 17.7 % increase from December 2022 . Conversely , Asia and Oceania saw a decline of 9.7 %, with 96.4 million tonnes produced . The Middle-
East produced 4.9 million tonnes , up by 9.6 %. Other regions also reported varied production changes . These 71 countries collectively represented about 98 % of global crude steel production in 2022 .
“ The market is poised for growth , fuelled by expanding applications across industries such as automotive and construction . Increased fabrication of metal goods and machinery production are key drivers . Urbanisation , alongside the rising demand for water and energy , presents lucrative opportunities . Additionally , growth in manufacturing and industrial sectors contributes significantly to market expansion ,” added the analyst .
The African market for steel is set to expand with a rise in construction projects across the continent . Increased public and private investments , supported by regional governments , will drive growth in the construction sector and boost steel demand .
“ Local steel is increasingly favoured for construction projects , contributing to market growth . Governments are promoting the use of locally produced steel to stimulate economic development and employment ,” confirmed EMR .
“ The Africa steel market is further aided by the automotive industry ’ s expansion across the continent . Robust growth in Africa ’ s automotive sector is evident , with major international car manufacturers setting up assembly plants in countries like South Africa , Nigeria and Morocco . Supported by favourable government policies and tax incentives , these initiatives have significantly increased
READ the demand for steel which plays a vital role in car manufacturing ,” it concluded . n
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10 | ismr . net | ISMR September 2024