Manufacturing trends can boost competitiveness

Competitiveness is no longer determined only by products and cost, and some new trends in manufacturing can help boost a company's competitiveness, David Zhu, partner and leader of digital transformation services at Roland Berger China, said during the latest Vision China event held in Wuhan, Hubei province, on Monday.

He said customers now care about carbon footprints, and they demand a technology shift from fuel-powered to battery-powered products.

Customers want de-risked, short supply chains and personalized products. In addition, customers and governments favor brands and products with local heritage, and customers demand shorter lead times and real-time manufacturing status, Zhu said.

"The demand of customers has opened a window for companies to differentiate their manufacturing. Companies could set up a carbon-neutral production facility, and shift the production workforce skill set toward battery and electrical production processes," Zhu said.

For example, with its first fully electric sports car, Porsche made its Taycan production facility in Zuffenhausen, Germany, fully carbon neutral.

Customers are looking for environmentally friendly practices, and Porsche has shown competitive advantages from brand perception and encouraging sustainability, he said.

In addition, enterprises could adopt local or regional manufacturing strategies to stay close with customers. Companies could also upgrade their manufacturing with 3D printing or highly flexible production machines.

For instance, with the adoption of resin-based 3D printing technology, Switzerland-based Sonova Holding, the world's biggest hearing solutions provider, has been on the forefront of on-demand customized hearing-aid production.

Digital manufacturing processes have eliminated the traditional time-consuming handcrafting process, and Sonova has competitive advantages in the mass customization of hearing aids, Zhu said.

Meanwhile, companies could establish their manufacturing in locally favored places. Companies could also link sales and manufacturing in planning, and connect shop-floor manufacturing with live data, Zhu noted in his speech.

Thus, companies face an inflection point, as they either address the trends and boost manufacturing competitiveness or run the risk of a creeping loss of competitiveness.

"Companies must carefully design the road maps, and consider both customer perception and competitors' moves. If done well, manufacturing can turn from a perceived liability into a true asset," Zhu said.