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RESEARCH, ANALYSIS & TRENDS









































             US Census; HIS Global Insight; Organisation for Economic Co-operation and Development (OECD); Mckinsey Global Institute
             analysis

            and business models.                                     almost always resembles low wages. Most of these
                                                                     business  opportunities  are  drying  up.  More  nu-
            Policymakers in developing new approaches                anced manufacturing strategies must balance fac-
                                                                     tors such as the access to high-skilled employees
            To compete in this dynamic age, manufacturing compa-     or lower-cost transportation.
            nies must:
                                                                   •  Policymakers  need  to  step  in  and  help  manu-
              •  Understand  customers  more.  Companies  must       facturers compete globally. They should:
                realize specific emerging markets and the needs of
                their existing customers.                             Have a thorough knowledge of their manufactur-
                                                                       ing sector. They must set policy with a detailed
              •  Develop  agile  strategies  and  production  pro-     understanding  of  the  many  industry  segments
                cesses. Decision making speed is as essential as       that make a national or regional economy.
                rapid-fire  production  methods.  Customers  are
                changing their minds about what they want to buy.     Make education and skills development top pri-
                And,  they  will  support  manufacturers  who  have    orities.  Policymakers  should  understand  that
                what they want, when they want it.                     supporting  critical  enablers  is  the  best  way  to
                                                                       support  ongoing  growth,  exports,  and  innova-
              •  Be willing to make big bets on long-range op-         tion.  Two  necessary  preferences  for  govern-
                portunities. Growth via better efficiency is one of    ments  and  businesses  include  education  and
                many  routes  to  manufacturing  success.  Finding     skills development.
                and acting on new business opportunities is anoth-
                er.  Manufacturers  must  be  willing  and  ready  to   •  Policymakers should help manufacturers build their
                make  bets  on  long-term  prospects.  All  these  are   R&D capabilities by upgrading product design and
                absolutely  high-pressure  decisions  –  manufactur-  data  analytics  knowledge  and  skills.  Companies
                ers must be willing to enter new markets or switch   will need computer-savvy production operators and
                to new methods and models to run their business.     responsive managers who can run worldwide sup-
                                                                     ply chains. Improving public education—especially
              •  Approach production and marketing strategies        mathematics and analytical skills—is another must-
                in a subtler way. In the past 30 years, market ac-   have  capability.  Policymakers  must  collaborate
                tivity shows that labor-intensive industries' behavior

                                                             8         April 2022: Marketing Automation: AI, Big Data & Deep Learning
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