The prevailing climate of low economic growth is driving global manufacturers to seek new approaches in innovation and collaboration across the value chain, and creating a somewhat surprising shared optimism for expected high-margin growth in the next 12 to 24 months, according to a new survey report from KPMG International.
According to KPMG’s 2012 Global Manufacturing Outlook: Fostering Growth through Innovation, 76% of respondents globally are optimistic about their business outlook over the next 12 to 24 months. This optimism seems to be buoying expectations that both sales and profitability will be up during the period with nearly half of respondents placing both top-line (43%) and bottom-line growth (41%) as main priorities.
The US is expected to lead the growth according to 40% of respondents, followed by China, India, Brazil and Germany.
Manufacturers from emerging markets outpaced those from developed markets by 10 and 14 percentage points, respectively, in their intent to increase radical and fundamental innovation in the next 12 to 24 months. Additionally, when respondents who planned to increase sourcing activities in China and India in the same period were asked which types of activities they planned to do, more than half selected “R&D” for China, and more than three fourths said “product development/design” for India.