Manufacturing the future: The next era of global growth and innovation

The global manufacturing sector has undergone a tumultuous decade: large developing economies leaped into the first tier of manufacturing nations, a severe recession choked off demand, and manufacturing employment fell at an accelerated rate in advanced economies.

Manufacturing the future: The next era of global growth and innovation, a major report from the McKinsey Global Institute, presents a clear view of how manufacturing contributes to the global economy today and how it will probably evolve over the coming decade. Our findings include the following points:

  • Manufacturing’s role is changing. The way it contributes to the economy shifts as nations mature: in today’s advanced economies, manufacturing promotes innovation, productivity, and trade more than growth and employment. In these countries, manufacturing also has begun to consume more services and to rely more heavily on them to operate.

 

  • Manufacturing is not monolithic. It is a diverse sector with five distinct groups of industries, each with specific drivers of success.

And Orientation takes place in the workspace.

Manufacturing is a Orientation in that it is an orientation in which the workspace is it’s prime objective.

Sure, you have these other Orientations in the financial, security, and government workspaces. All strong positions.

What makes manufacturing unique is that it encompasses all the other orientations. Manufacturing acts as a gap between all others.

In all the other orientations, the prime directive is growth. This is especially true if the environment you are coming from is Capitalistic.

In a Capitalistic environment, manufacturing wants to shrink its base as much as it wants to grow it. Like the number cruncher’s numbers, manufacturing relies on both the positive (adding new jobs), and the negative (paying for fewer jobs) than the market allows.

Therefore, manufacturing becomes a pivot point which all flow is possible.

This law is, because, unlike the financial (number crunching) market, manufacturing maintains a position, not a potential.

via Manufacturing the future: The next era of global growth and innovation | McKinsey & Company.

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