Manufacturing Industry Archives - Business Intelligence

Tag: Manufacturing Industry

Smart Manufacturing and Custom Market Research

Why the World Needs Smart Manufacturing Now

In recent times, technological advancements have transformed the manufacturing industry. As experts speculate the benefits and detriments of these advancements, it is widely accepted that smart manufacturing is leap forward for manufacturers across sectors. Currently, smart manufacturing is becoming the focus of manufacturing globally. It is the integration of the manufacturing industry and new-age information communication technology. As this change permeates the manufacture process in the form of smart factories and the adoption of industry 4.0, it is transforming traditional manufacturing for the better.

The benefits of smart manufacturing are unparalleled, for instance, it can accurately predict requirements, identify errors, make innovation easier, and make the manufacturing process easier. It is crucial to note that smart manufacturing is the process of combining various technologies and solutions and implementing it into the manufacturing process. These technologies and solutions are referred to as ‘enablers’ and include artificial intelligence, blockchain in manufacturing, industrial internet of things, robotics, and more. Unlike the commonly misconception of it being a direct implementation on the existing process, the actual process is long-drawn and challenging.

For this reason, manufacturing companies across the world are leveraging custom market research solutions, to help them understand the market and make the transition easier. In this article, Infiniti’s research experts highlight the various benefits of, and factors affecting smart manufacturing. Additionally, they highlight the benefits of custom market research for the industry.

Smart manufacturing is taking the world by storm, and it is crucial for manufacturing companies to be prepared. Get more information to learn more about this global phenomenon and what it means for your company.

Smart Manufacturing and IIOT

The industrial internet of things (IIOT) is an ecosystem where every device, machine, and process is connected through data communication. It incorporates machine learning and big data, while harnessing sensor data and automation. The concept behind IIOT is that machines capture, analyze, process, and communicate data better than humans can. Giving manufacturers the opportunity to identify inefficiencies and find solutions faster than they ever could previously. IIOT can make smart manufacturing faster, more efficient, and more profitable. It does this by providing manufacturers with precise information throughout the production process.

The Benefits of Smart Manufacturing

Technological advancements offer various benefits in every industry and sector. In the case of smart manufacturing, these benefits change the manufacturing process entirely. Every smart factory provides manufacturers with the following impactful benefits:

Automated data:

All the information procured and made available through the technology implemented in smart factories allows managers to make more informed decisions. It also makes it possible for manufacturers to link their technology with business goals and measure their key performance indicators more efficiently.  

Predictive maintenance:

With constant, precise information from their technology, smart factory managers can predict and resolve maintenance issues. This, in turn, avoids downtime and negative effects on product-quality.

Significant cost reductions:

Smart manufacturing allows manufacturers to increase forecast accuracy and reduce waste. It also provides better insights into supply chain systems, such as demand levels, inventory, delivery status. This helps reduce costs with appropriate supply-chain and demand management.  

Enhanced productivity:

With seamless data on bottlenecks, machine maintenance, and functioning, and operational inefficiencies, manufacturers can substantially enhance productivity. Smart manufacturing helps make the required adjustments to improve quality, reduce waste, and potentially increase yield.

Smart Manufacturing and COVID-19

As the world attempts to recover from the COVID-19 pandemic, businesses and manufacturers across the globe suffer losses. With mandated social distancing in most countries, continuing the traditional manufacturing with hundreds of employees present is not possible. This has led to considerable growth in smart manufacturing. With a reduced need for manpower, and high automation, not only can manufacturers continue production, but they can also recover from their losses with high efficiency, and lower costs.

The world is slow to recover from this pandemic, and industries across the globe are changing to a data and IoT dependent work approach. Businesses are encouraged to create more technology-dependent work modules, to reduce risks and losses. Digitizing processes provides manufacturers with increased flexibility that will be essential in coming years. It also allows businesses to protect workers, safeguard jobs, and build an adaptable manufacturing industry.

Identifying and successfully stepping into the future with the manufacturing industry is crucial. As opportunities present themselves, speak to our experts to learn how to seize them in the best way possible.

The Benefits of Custom Market Research for Smart Manufacturers

In times of fast and crucial change, businesses must rethink their business model, marketing approach, and strategies for various facets of the industry. Custom market research solutions address unique business challenges and develop comprehensive, unique strategic solutions. As the smart manufacturing industry grows at breakneck speeds, manufacturers need assistance in successfully transitioning into industry 4.0. Infiniti’s experts further detail the benefits of custom market research solutions:

Targeted Research:

Custom market research solutions allow businesses to focus on specific pain points and procure target market research regarding them. This targeted data enables businesses to acquire forecasts regarding market trends and market growth in their niche market space. As industry 4.0 evolves, these solutions always allow businesses to be prepared and a step ahead.

Deeper Insights:

Custom market research companies provide insights based on a combination of primary and secondary research. With insights from industry experts and major stakeholders, as well as a compilation of information from various industry forums and databases, this data is detailed and highly insightful. These insights can help manufacturers identify potential risks with proven data and develop actionable strategies as they work towards creating their smart factories.  

Comprehensive Research:

Custom market research solutions compile information effectively from various sources. Additionally, custom market research companies help companies develop the ideal strategic approach to challenges and overcome them while evolving with the market. Industry 4.0 is challenging, and comprehensive data can help manufacturers embrace the changing market efficiently.

As industry 4.0 and smart manufacturing evolve, companies must ensure they are prepared to evolve as well. Custom market research solutions make this possible. Request a free proposal to gain comprehensive insights and actionable solutions.

Additive Manufacturing and Demand Management

Staying Ahead of the Curve with Additive Manufacturing

Technology is developing at exponential rates, and every other industry is developing simultaneously. The latest development in the technological world is additive manufacturing at a large scale. More commonly known as 3-D printing, the young concept has grown to a mass production level rather quickly. However, 3-D printing and rapid prototyping, while used interchangeably with additive manufacturing, are subsets of the same. The role it plays in the manufacturing industry now is highly impactful and is bringing about change that is long overdue.

There is no limit to the positive impact of additive manufacturing. It is a sustainable, durable, more efficient, and the extent of manufacturing design it allows is incomparable. Additionally, it is reforming traditional supply chains across industries, allowing companies to reduce losses, save time, optimize products, and increase automation, also in-turn reducing risks substantially.

However, as the manufacturing industry grows, it is faced with challenges relating to changing demands, on-demand needs, wide range designing and execution, major investment, and maintenance. Experts suggest leveraging demand management solutions for efficient growth. Demand management helps additive manufacturers strategize according to customer demand and benefit from all the advantages it offers. In this article, Infiniti’s industry experts discuss additive manufacturing and the advantages, impact on businesses, and need for demand management.

Speak to our exerts to learn more about the role of demand management in the growing manufacturing industry and stay ahead of the curve.

The Advantages of Additive Manufacturing

As an industry grows, so do the technologies it employs. Additive manufacturing is a crucial indicator of the growth of the manufacturing industry. To help understand how it is beneficial, experts at Infiniti have highlighted the following four key advantages:

  • Design Freedom: Additive manufacturing uses materials that can be printed in the preferred design, removing the limitations of rigid and unyielding materials. This allow for a wider range of designs. Reducing the need to design and construct in limited capacities. Parts that previously required welding or brazing, can now be singularly designed and manufactured. This also allows to create designs that could previously not be attached due to various material issues.
  • Sustainability: Additive manufacturers can now use solely the materials required, bringing down waste by a substantial amount. Without the need to cut parts or supply from a larger material, such as rigid flex, there is no excess material that would most commonly need to be disposed of. This in-turn reduces energy consumption and lowers carbon footprints.
  • Faster Manufacturing Cycles: Since the process is initiated through efficient software, a large amount of time is saved in the transfer of information process. This allows for faster prototype production, and therefore, faster testing. Additionally, changes can be made immediately, reducing time and material wasted in the testing or optimizing process.
  • Accuracy and Efficiency: The high level of automation, design freedom, and control through software in additive manufacturing provides high levels of accuracy that would not be possible with an assembly line. Additionally, as previously mentioned, the changes required can be immediately made, and efficiency will remain uncompromised.

The Business Impact of Additive Manufacturing

While knowing the wide span of advantages of additive manufacturing is crucial, it is also important to understand how exactly they impact businesses. Additive manufacturing has had a highly positive impact on the manufacturing industry, and all other industries associated with it. The following five points explain the business impact as well:

On-Demand Supply:

Additive manufacturing allows for goods and products to be produced as and when required, as opposed to the mass manufacturing approach of the traditional method. This allows for customers to acquire products, spare parts, and goods as per their need, and businesses to only produce as per current or accurately forecasted demand. For businesses, this translates to reduced waste, higher demand, higher customer satisfaction, and reduced costs.

Faster Supply Chain:

Additive manufacturing majorly reduces the impact of various physical material issues. An additional impact reduced by this form of manufacturing is that of trade issues. The materials used are readily and locally available, reducing the risk of changing policies. Additionally, with the reduced need for assembling various parts, since products can be printed in various geometric shapes, there is need for a singular raw material.

Increased Automation:

Since a single unit can produce a complete part without the need for tooling, reducing dependence on fixtures and production time. Further, there is a reduced need for manual intervention during the manufacturing process, seeing as most of the process is automated. This requires a lower amount of labor, also requiring less-skilled operators.

Product Optimization:

The most prominent issue in mass production, is the inability to make immediate changes to the product or process. For instance, a flaw in a certain manufactured product, would require various major adjustments in the manufacturing process to change. Since additive manufacturing uses one raw material, and can be digitally controlled, change is easier, which in turn makes product optimization easier. Reducing the costs of procuring more raw material, the need to acquire more skilled labor, and the loss of large sums due to a flaw.

Understanding the advantages and business outcomes of additive manufacturing is crucial to propelling the growth of the manufacturing industry. Get more information to gain more in-depth insights from our experts.

The Role of Demand Management Solutions

While additive manufacturing has innumerable advantages, it also has certain challenges that make it difficult for industries and companies to easily grow with the fast propelling industry. While these units conserve time by reducing transport of raw materials, allowing automation, and allowing faster testing cycles, their limitation is that they print one layer at a time. Similarly, other challenges such as the lack of expertise in this field, the large initial investment and maintenance costs, and the lack of digital infrastructure required in many cases.

However, these are challenges that can be efficiently dealt with as the system begins to grow. More importantly, companies now faced with high demand, and issues with delivering accordingly. The future of additive manufacturing is highly dependent on its interaction with demand management solutions in the coming years of forecasted growth. Infiniti Research’s demand management experts are equipped to approach and tackle this exact challenge. By efficiently forecasting demand, preparing for market trends, and estimating consumers’ demands, the demand management process can significantly reduce risks and increase supply chain agility.

The demand management process is crucial to the efficient growth of additive manufacturing. Request a free proposal to learn how Infiniti’s demand management solutions experts help additive manufacturers grow strategically.

Logistics and supply chain

An Action Plan for Preparing Logistics and Supply Chain Recovery from the Coronavirus Impact

The coronavirus outbreak is a deep humanitarian crisis that is posing unprecedented challenges for business leaders and the economy as a whole. This article is intended to provide key insights to logistics and supply chain leaders grappling with responding to the existing crisis while ensuring employee safety, operational viability, and reviving their business from a historic supply-chain shock. A deep analysis of the ongoing situation by our industry experts suggests that several businesses can mobilize and set up rapid crisis management mechanisms to ensure business continuity. However, the typical focus of most of these efforts has been understood to be for the short-term. Logistics and supply chain leaders must also plan for the medium and long term in order to build resilience for the future.

Logistics and supply chain COVID-19 impact

Evaluate existing inventory at hand

At this stage, businesses must begin by estimating how much inventory is available in their value chain. This facilitates capacity planning for the long-run and also acts as a bridge to keep production running. Specific categories that must be considered include stock of finished goods in the warehouse, spare-parts inventory, inventory-in-transit, and blocked inventory that may be held for sales, QC, and testing.

Create logistics and supply chain transparency

Begin by determining components that are critical for operations. Also, have a clear idea of the components that are sourced from high-risk areas and lack ready substitutes. Supply chain risks related to these commodities can then analyzed to assess the risk of interruption from suppliers of tier-two and onward.   Manufacturing companies must engage with their key suppliers across tiers in an effort to form an agreement to monitor lead times and inventory levels and establish an effective recovery plan.

Estimate realistic end-consumer demands

A crisis such as the existing COVID-19 may cause an exponential increase or decrease in end-customer demand, making it increasingly difficult to gauge the fluctuations in demand harder.   Evaluating the underlying uncertainties in forecasts during short term and medium-term demand planning is essential.  Additionally, direct-to-consumer communication channels, market insights, and internal and external can prove to be invaluable sources of information in assessing the current state of demand among the customers’ customers. To prepare better for supply chain and logistics challenges related to the demand, manufacturers can consider integrating market intelligence into product-specific demand forecasting models, use advanced statistical forecasting tools to generate a realistic forecast for base demand, dynamic forecast monitoring to react quickly to inaccuracies.

Want more insights on how our advanced market intelligence services can help you with accurate demand planning and forecasting models to keep your business in control despite the ongoing crisis?

manufacturing industry

Taming Sales Complexity in the Manufacturing Industry

As the growth of the manufacturing industry continues to soar, it is natural that the buying processes involved have consequently become more complicated, lengthier, and involving more stakeholders in the sales cycle. While growing manufacturing companies make supplier collaboration and diligence on the manufacturing floor a top priority, eliminating complexity from customer-facing processes often takes a backseat. Furthermore, as product portfolios grow broader, multi-year service contracts are becoming the new normal and shorter product lifecycles are bound to make the sales manager’s job in the manufacturing industry even more challenging. Based on our expertise in helping manufacturing sector clients to overcome similar challenges, we have listed out some ways by which sales managers in the manufacturing industry can overcome complexities.

Want to learn more on how sellers in the manufacturing sector can better keep up with the rapid changes in buyer behavior? Request a free proposal for comprehensive insights on our solutions for companies in the manufacturing industry.

Communicate with decision-makers

Generally, most B2B purchases in the manufacturing sector involve at least five or more people. Each of these stakeholders will also be in charge of different teams that could influence their key decision-making. It is vital for the sales team in the manufacturing sector to be able to gain a comprehensive understanding on the company including its culture, goals, and what support their primary contact needs in order to get others onboard. A best practice here is to think through the mind of the buyer and how they would convince their team about your products. If the key questions of the key stakeholders can be effectively taken care of, then it becomes for easier for sales managers to close the deal.

Customize based on the requirement

Different internal stakeholders in a buying organization will have different requirements. As such, the one-size-fits-all approach here could prove to be ineffective. Therefore, it becomes essential for manufacturers to tailor experiences for different stakeholders. A good majority of B2B buyers will be willing to pay more for a great experience while making a purchase, making this a crucial factor for companies in the manufacturing industry to consider.

Request a free brochure to learn more about our solutions and how we help our clients tackle key business challenges.

Leverage consumer insights

Sales managers in the manufacturing industry must leverage appropriate customer relationship management tools. This will help them prevent losing valuable customers to competitors. Modern CRM systems have the ability to track which content has been sent to a contact, and when coupled with a sales Enablement platform, can track which parts of this content have been read and which works best for certain sectors. When used together, CRM and sales Enablement can help marketers and the sales team to analyze and understand how best to influence prospects.

How can you accelerate your company towards more strategic initiatives in the manufacturing industry? Get in touch with an expert to find out.

shipbuilding company

Exploring Critical Challenges Facing the Swiss Manufacturing Industry

Manufacturing industry

As the center of gravity of manufacturing has gradually migrated to Asia over the past decade, it has become acceptable in more developed nations to assume that manufacturing industry can no longer play a substantial role in the expansion and continued sustainability of their economies. Switzerland is known for setting itself apart internationally by being a highly competitive and attractive market to do business. The Swiss manufacturing industry has come under increased pressure over the past couple of years. The global financial crisis and the subsequent strength of the Swiss franc posed several manufacturing industries challenges. In the view of these manufacturing industry challenges, the questions to find answers to here is how long Swiss manufacturing companies can remain competitive and how they are going to do so.

It is important for companies in the manufacturing industry to build on existing strengths in order to flourish and stay competitive in the long run. Request a free proposal to find out how our solutions can help companies in the manufacturing industry achieve this.

Manufacturing industry challenges in Switzerland

Economic volatility

The Swiss economy is characterized by rising volatility and increased uncertainty since the global financial crisis almost a decade ago. Subsequently, there was an increased pressure on margins of companies in the manufacturing industry due to the strengthening of the Swiss franc. This situation was stabilized to a considerable degree when the swiss national bank implemented the EUR/CHR exchange rate floor. However, the increasing pressure has resulted in several companies in the Swiss manufacturing sector to make additional operational adjustments. Manufacturing companies exporting primarily to Europe are most likely to shift their focus outside traditional markets to growth regions.

New growth markets

During recent years, strong economic growth has occurred in emerging markets rather than developed markets. In this scenario, the key challenges for Swiss manufacturing industry companies will be to expand their operation further into new growth markets and at the same time compete effectively with existing players in these markets.

Get in touch with our experts to gain insights on how we can help manufacturing industry players to increase efficiency and productivity.

Rising global competition

Amidst rising global competition, innovation, the need to introduce new and innovative products are becoming paramount for companies in the manufacturing industry. While targeting new growth markets, manufacturers must ensure that their products are tailored to suit local needs. Product innovations are essential in developed markets to survive despite the rising competitive pressure. The challenge here for companies in the Swiss manufacturing industry will be to reinvent themselves amid these tensions, especially because new products from emerging markets are increasingly being imported to developed countries and has become a source of competition for manufacturers in domestic markets.

Shortage of resources

Another critical challenge for Swiss manufacturing companies involves issues such as shortage of resources, which is prominent in case of talent and energy. Firstly, the Swiss manufacturing industry has long experienced shortage of labor and this needs to be addressed immediately in order to remain globally competitive. Secondly, Switzerland’s energy policy provides for phase-out of nuclear power and promotes renewable energy sources. This entails both risks and opportunities for the Swiss manufacturing industry. The challenges here would be to restructure the energy industry as an opportunity while staying prepared for contingencies such as electricity prices or uncertainties in terms of supply securities.

Learn more about Infiniti’s solutions for the manufacturing industry

Future of Manufacturing in Europe: Key Forces That Will Drive Growth and Profitability

Europe’s 2020 agenda for digitization and Horizon 2020 plan for R&D funding are significant initiatives to facilitate a more sustained and competitive economy. These long term strategies will eventually trickle down to the manufacturing sector and play a significant role in the future of manufacturing in Europe. The manufacturing sector currently accounts for nearly 15% of Europe’s GDP and will play a significant role in their long-term economic development. In this blog, experts at Infiniti explore some of the key forces that will drive transformation in the future of manufacturing in Europe and disrupt their manufacturing sphere.

The European manufacturing sector holds tremendous opportunities, but these opportunities also comes with a host of challenges especially for players who are new to the market. Request a free proposal to know how our industry experts can help you stay abreast of the challenges in the European manufacturing space and capitalize on the right opportunities to improve profitability.

Future of Manufacturing in Europe

Future of manufacturingNearshoring in Eastern Europe

Although Western Europe is often considered the hub for manufacturing activities, Central and Eastern European countries including Hungary, Poland, Romania, and Czech Republic are expected to become pivots for manufacturing innovation. The easy availability of cash grants and tax incentives, and the accessibility of skilled researchers are some of the key factors enabling this shift.

Rise of industry 4.0

With large sums of money being allocated as a part of the Horizon 2020 R&D funding program, we can expect significant advancements in computing, sensor technologies, and robotics in the future of manufacturing in Europe. If this becomes a reality, the future of manufacturing in Europe will not be far from achieving the vision of connected enterprises.

Carbon neutral manufacturing processes

The growing climate change and carbon emission concerns are putting pressure on manufacturing companies around the world to resort to more eco-friendly production processes. From a manufacturing industry standpoint, it is vital to optimize current energy consumption in the plant and focus on electricity from renewable sources. Moreover, the EU plans to reduce 40% of its carbon and greenhouse gas emissions by 2030. As a result, we can expect to see several top manufacturing companies embracing the concept of carbon-neutral processes in the future of manufacturing.

Get in touch with an analyst to know how our solutions can help your business stay ahead in the future of manufacturing.

Demand for highly-skilled workforce

The demand for low-skilled manufacturing jobs is on a steady decline. The future of manufacturing in Europe will soon undergo a structural shift as a result of rising demand for highly skilled and efficient workforce. Human-centric factories will become a reality that encompasses attributes such as dynamic work environments, skill development, and factories aligned to social environments.

Disruption of nanotechnology

Nanotechnology is one of the key enabling technologies in Europe’s Horizon 2020 plan. This will proliferate new opportunities in sectors such as food and beverage, where non-scale polymers can be used to prevent oxygen from spoiling the food. This also means that companies in the manufacturing sector will soon be focusing on the use of nanotechnology in their production and packaging process to enhance the output.

Energy and geopolitics

From a political standpoint, an important talking point is the lifting of the Iran Sanctions, and Russia and China coming together due to the economic climate in both countries. As a result, there was a cheaper dumping of goods, as was seen with the steel industry. Iran will provide more of a growth opportunity when compared to Russia and China, with certain sectors including aviation and automotive expected to see opportunities galore.

Learn more about Infiniti’s solutions for the manufacturing industry

market expansion strategy

Strategies to Enhance Market Share in Asia for Industrial and Manufacturing Firms: In Conversation with an Infiniti Research Thought Leader

Ajay Biswari, AVP – Custom Research (Market and Competitive Intelligence) at Infiniti Research has over 10 years of experience in delivering solutions for global giants in the industrial and heavy equipment sector. His core expertise includes market entry, market expansion, merger and acquisition identification, and customer needs assessment.

Industrial and manufacturing firms often face dilemma in understanding market dynamics and developing an effective market entry or market expansion strategy. Also, the rising competitive pressure, increasing need for differentiation in the market, and need to comply with the stringent regulatory environment have adversely impacted companies in the industrial and manufacturing industry. Consequently, industrial and manufacturing firms are under the pressure to expand their base of operations to developed markets. This necessitates stakeholders to develop an effective market expansion strategy, understand the competitor landscape, and gain a comprehensive view of the current market scenario.

Our market expansion strategy engagement can help industrial and manufacturing firms to gain in-depth market and consumer insights, collaborate with local businesses, garner government support, and devise an efficient market expansion strategy. Request a FREE proposal!

Do industrial and manufacturing companies need to expand their business to new markets?

Amal: Absolutely! Today, several market dynamics affect the business operations of companies operating in the industrial and manufacturing industry. The rising market uncertainties such as increasing competitive pressure, uncertain political scenarios, and rising operational costs are some of the major factors impacting the business operations of companies in the industrial and manufacturing sector. Let me explain in detail impacts of these challenges on companies in the manufacturing industry. The growing competitive pressure often leads to price wars between companies and negatively impacts a manufacturing company’s bottom line. Furthermore, increasing political instability in the recent times including events such as BREXIT and NASTA are even making it more difficult for companies in the industrial and manufacturing industry to sustain a leading edge in the market. To remain ahead in the market and expand market share, it is vital for industrial and manufacturing firms to expand their base of operations to new markets.

market dynamics

Can you shed some light on the strategies that must be adopted by manufacturing firms to survive in today’s competitive market scenario?

Amal: Let me list out three major strategies, which according to me help companies stay ahead of the game. Some companies use technologies to overcome challenges. For instance, recently a major tool manufacturing company achieved 24% productivity improvement and 10% workforce efficiency improvement by investing in new technologies such as IoT and AI.

Also, companies are investing in new product innovations. Introduction of new products in the market can help companies to stay competitive. But, I would highly recommend manufacturing companies to employ a market expansion strategy, as this is sure to provide an above-average growth rate and can save millions of dollars in savings.

With over 15 years of expertise in providing custom market intelligence solution, we have helped various global companies to devise efficient market expansion strategy. CONTACT US to know how our solutions can help your company.

But, why do you think entering the Asian market can be an ideal growth strategy for manufacturing firms?

Amal: Well, recent studies show that over forty per cent of global economic activity is now occurring in Asia, and world growth is expected to continue being led by Asia over the next decade. Also, India and China are two of the major economies which are growing at the fastest rate globally and provide vast opportunities for manufacturing companies. And even these countries heavily depend on exports as one of the revenue streams. So, new manufacturing companies can easily set up manufacturing bases relatively with a low cost of labor and raw materials. So, I think choosing the Asian market can be an ideal growth strategy for companies in the manufacturing industry.

Can you provide more insights on why Asia is a promising market for industrial and manufacturing companies?

Amal: Definitely! To start off with, Asia offers an attractive manufacturing environment that is favourable for manufacturing companies. Also, if we look at the share of global manufacturing output, it has almost doubled in the last decade. Moreover, the low operating cost and diverse demography are some of the other attractive factors in the Asian Market.

I would also like to add another significant geographical advantage within the Asian market in terms of access to market. With companies in the Asian manufacturing industry already competing with each other to be on top of the manufacturing pyramid, this market is trying to garner interest among global firms by offering smooth entry into their market. Also, considering the production cost, Asia offers lower operational costs compared to other developed countries.

What are the major market expansion approaches that some of the top manufacturing companies in the world adopt to stay ahead of the game?

In my view, most manufacturing companies look at setting their individual manufacturing bases or enhance their sales through various approaches. For setting their own manufacturing bases, companies generally leverage greenfield and brownfield expansion approaches. Let me explain these approaches in detail. Generally, greenfield expansion approaches involve huge investment in terms of resources, time, and capability. Although this approach provides complete control over the manufacturing and supply chain processes, this involves huge risks and takes a longer period for results to be shown. However, the brownfield expansion approach provides a kick-start immediately. Also, the brownfield expansion approach requires relatively lower capital investment compared to greenfield approach.

In the case of sales expansion strategies, manufacturing companies mostly look at own sales network or channel partners. Own sales network approach is mostly similar to the greenfield approach, which requires huge capital investment. However, channel partner approach helps companies gain in-depth knowledge about the market through channel partners who are already present in the market.

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manufacturing industry in Latin America

Why Top US Brands are Turning to the Manufacturing Industry in Latin America

Earlier, many top manufacturing companies in the US heavily relied on Chinese manufacturers due to the availability of low-cost labor. However, with the rapid economic growth in China and a larger section of the Chinese population moving to middle-class and demanding higher wages, several global brands are turning away from China in search of lower-cost alternatives from emerging markets. The manufacturing industry in Latin America is one such market that has become highly lucrative for companies in the US. Everything from medical supplies, to pharmaceuticals, to apparel, aircraft and computer machinery is now manufactured in Latin America, and the political and economic policy adjustments have significantly contributed to the manufacturing industry growth in Latin America.

A lot goes into finding the right balance in terms of economy and quality while manufacturing a product. Request a free proposal to know how our solutions can help you achieve this!

Benefits of manufacturing in Latin America

manufacturing industry in Latin AmericaProximity

One of the key benefits of manufacturing industry in Latin America is its proximity to the US. When American brands do business with suppliers in overseas regions like Asia, it requires officials from the company to travel to the foreign nation. This is primarily because they may want to gain a firsthand view of where and how their products are manufactured.  One of the key benefits of manufacturing in Latin America for companies in the US is their proximity to Central America. Another challenge that proximity helps solve is the disconnect from the manufacturing process.

Lower turnaround time

By relying on the manufacturing industry in Latin America, companies in the US can ensure faster shipping of the final products than that from overseas. Often, businesses that have their manufacturing units in Asian countries like China re-stock only once a quarter it takes at least a month for an order to ship overseas. This lack of flexibility in ordering can lead to over- or under-stocking of products. Shipping from the manufacturing industry in Latin America gives a lot more flexibility to companies in the US when it comes to placing orders.

Get in touch with our experts to stay updated on the latest manufacturing industry trends, challenges, and opportunities and learn how our solutions can help your business stay ahead of the game.

Vast labor pool

One of the biggest advantages of turning to the manufacturing industry in Latin America is the high labor pool available. With China’s economy on the upswing, the labor costs of manufacturing industry in Latin America would prove to be much cheaper for brands in the United States. Moreover, in changing economies, Like China, where a greater number of people are rapidly entering the middle class, the manufacturing industry is booming due to the rise in demand by the local population. This means that manufacturers are utilizing their own resources to meet local demands. In some places, it is required for them to do so. This could lead to longer turnaround times and higher cost of labor overseas, making the manufacturing industry in Latin America highly attractive for American companies.

Learn more about Infiniti’s solutions for business.

Competitive Landscape Analysis

Infiniti’s Competitive Landscape Analysis Accelerates Process Agility and Efficiency for a European Manufacturing Firm

Competitive landscape analysis for the manufacturing industry

The European manufacturing industry is witnessing a phase of tremendous disruption due to the increasing need to embrace automation, become more sustainable, and address the skill shortages. To keep up with the industry transformations, major companies in the manufacturing industry are capitalizing on new opportunities, employing risk mitigation strategies, and mitigating challenges along the supply chain. However, before making huge investments into new market opportunities and investing in technologies, it is vital for manufacturing companies to assess the competitive landscape in the market and make changes in their strategies accordingly.

Business Challenges Faced

The client is a manufacturing company based out of Europe. With leading players in the manufacturing industry taking initiatives in confronting uncertainties in the market and meeting the market demands, the client was losing their market share to their competitors. Also, the client’s inability to address the skill shortages and employ risk mitigation strategies further impacted the company’s overall sales rate. Consequently, the company witnessed a dip in their profit margins by 17%. The client, therefore, approached the experts at Infiniti Research to leverage their expertise in offering competitive landscape analysis.

With Infiniti’s competitive landscape analysis, the client wanted to tackle challenges such as:

Supply chain issues

The inability of an efficient inventory management process resulted in a huge mismatch in the supply and demand. As a result, the company failed to meet their customers’ demands, and this subsequently resulted in lower sales. With Infiniti’s competitive landscape analysis, the client wanted to closely analyze their direct and indirect competitors’ inventory management processes and make changes in their plans accordingly to efficiently meet the market demand.

Need for sustainability

The increasing pressure from government and public for greener operations put the company under the pressure to become more sustainable. Therefore, with Infiniti’s competitive landscape analysis, the client wanted to understand the strategies adopted by top industry players to tackle this challenge.

Need to address skill shortages

Although automation and robotics are filling the labor gap in the manufacturing industry, there are still requirements of human capabilities in manufacturing companies. The client, therefore, wanted to overcome the workforce management challenges.

Data protection

With cyberthreats increasing in the manufacturing industry, investment in data security is becoming imperative for manufacturing companies. Hence, with Infiniti’s competitive landscape analysis, the client wanted to analyze the risk mitigation strategies leveraged by their key competitors.

Investing in new technologies

With the advent of technologies such automation, Industrial Internet of Things (IIoT), cloud computing, and robotics in the manufacturing industry, major companies have started embracing these technologies and delivering the best quality product at a faster pace. As such, with Infiniti’s competitive landscape analysis, the client wanted to monitor their competitors’ investment in new technologies and processes.

Solutions Offered

To help the client tackle the industry challenges and analyze their direct and indirect competitors, the experts at Infiniti Research employed competitive landscape research.

The initial stage of the competitive landscape analysis engagement involved conducting competitive benchmarking analysis. This phase of the competitive landscape analysis engagement helped the client to gain an independent perspective of how well their company performed compared to their competitors. Also, the client was able to drill down into their performance gaps to identify areas of improvement. The client was also able to identify the sustainable manufacturing practices adopted by their key competitors to minimize negative environmental impact. Furthermore, this phase of the competitive landscape analysis engagement also enabled the client to monitor their competitors’ initiatives in employing new technologies and processes.

As a part of the competitive landscape analysis engagement, the experts also conducted demand management and risk assessment process. This phase of the competitive landscape analysis engagement helped the client to efficiently forecast the demand for their products in advance and minimize supply and demand mismatch. This further helped the client in managing their production process and enhancing efficiency.

Also, the risk assessment process conducted as a part of the competitive landscape analysis engagement helped the client to identify cyber risks in the manufacturing industry and employ cybersecurity initiatives to mitigate them before they impact their business operations. Furthermore, with Infiniti’s competitive landscape analysis, the client was able to estimate the viability of their new products and evaluate the effectiveness of their marketing strategy compared to their competitors.

Results Obtained

The insights obtained from Infiniti’s competitive landscape analysis engagement helped the client to identify gaps in their product and service offerings compared to their competitors. Also, with Infiniti’s competitive landscape analysis engagement, the client was able to keep pace with their competitors’ business strategies and make changes in their business plans when required. Within one year, the client was able to achieve a huge increase in their sales. This subsequently helped the client to enhance process agility and reduce operating cost by 33%.

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