Manufacturing CEOs focus on resilient supply chains and tech transformation in response to global issues
- Published: Wednesday, 02 February 2022 09:40
KPMG's Global Manufacturing Prospects 2022 report features the results of a survey of CEOs from global manufacturing companies and shows that supply chain resilience is a top concern.
Key findings include:
- Supply chain risk is seen as the greatest threat to the organization’s growth. More than two thirds (68 percent) of CEOs say they aim to ensure their supply chain is resilient in the event of a major global disruption at some point in the future.
- The top way to mitigate stress on the supply chain is to extend their company's monitoring deeper into the supply chain to anticipate changes before they have a severe impact.
- The main operational priority to achieve growth objectives over the next three years is to invest in the digitization and connectivity of all functional areas.
- 67 percent say the overall objective of their organization is the long-term value for shareholders, almost five times more than the number focused on economic returns.
- The pandemic, climate change and geopolitics are driving global manufacturing executives to focus even more than before on a twin transformation: smart digitization and a focus on environmental, social and governance (ESG) goals.
- CEOs at manufacturers have learned two important lessons from the pandemic: the vital importance of a resilient supply chain and the need to invest in new technologies to strengthen resilience, by both avoiding business disruptions—and taking advantage of them.
- The need for resilience is forcing companies to be more agile and make better decisions faster. Digitization plays a vital contribution to this.
The findings of the Global Manufacturing Prospects 2022 report are based on a global survey of almost 150 CEOs in manufacturing companies in 11 countries in Europe, North America and Asia-Pacific. Three quarters are at companies with annual revenue of $1 billion or more.