Conducted in February, KPMG’s Global Manufacturing Outlook survey questioned 241 executives from the aerospace and defense, metals, engineering and industrial products sectors, conglomerates. All questions concerned the time period of the next one to two years. Seventy-five percent of respondents have a positive outlook. When asked what factors would be most vital to profits, 65% of respondents selected “manufacturing footprint and sourcing strategies.” “Manufacturing process innovation,” “new product innovation” and “new/enhanced customer services” were selected by 62% each. When asked about collaborations for innovation, 61%, 60% and 50% of respondents, respectively, predicted more collaborations with major customers, suppliers and partner firms, while 31%, 32% and 41% expected no change with those respective groups. For 72% of respondents, the “next wave of transformational innovation” in manufacturing has begun or will start within the next one or two years. Over 70% each expect increases in incremental innovation and process innovation, while 59% expect more radical innovation and 54% predict more fundamental research.

Source: KPMG