KPMG is a global firm that provides tax, audit and advisory services. In one of its surveys, namely the “Global Manufacturing Outlook” survey, the firm analyzed about 196 manufacturing executives globally. These were in aerospace, metals, engineering and related industries.
The topic of discussion centered on the supply chain management. The recession hit one and all very badly. Most of the companies simply steered clear of any risks and investment which were relatively unsafe. In simple words, no taking of chances were the approach they followed.
Most of these companies are looking at working on a more intimate level with their suppliers. This is in terms the role they play in the manufacturing cycle namely product innovation and supply chain agility. One may simply look at China and India as two major countries which saw a lot of low cost manufacturing products before. These two markets have now become much bigger and deeper then that.
Today a number of world giants are willing to source research and development as well as manufacturing of sophisticated products in these countries. The rate of such activity has increased by about thirty percent which was a flat zero not three years ago. Jeff Dobbs, global and U.S. head of diversified industrials with KPMG, however states there are limits to this still. It would not be any time in the near future that you will have cars manufactured in China and exported to the United States.
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