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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