Asia/Pacific Manufacturers Will Develop New Low-Cost Manufacturing Centers and Focus on Emerging Markets in 2014; New Technologies to Drive Visibility Across Supply Chain: IDC Manufacturing Insights
09 Dec 2013
Singapore and Hong Kong, December 9, 2013 – IDC Manufacturing Insights predicts that in 2014, Asia/Pacific manufacturers will develop new low-cost manufacturing centers and focus on emerging markets, using new technologies to drive connectivity and visibility across the entire value chain.
The year 2013 can be described as “green shoots emerging” as the World economy picks up, and Asia manufacturers benefit.
IDC believes Asia will remain the global growth leader, moving into 2014, as reforms are introduced in the major Asian countries like China, India and Japan. Emerging market to emerging market trade will continue at pace, as predicted last year, with Asia/Pacific manufacturers continuing their focus and efforts on doing business with other emerging markets.
This leads IDC Manufacturing Insights to predict that in 2014, Asia/Pacific manufacturers will develop new low-cost manufacturing centers and focus on emerging markets, using new technologies to drive connectivity and visibility across the entire value chain.
More insights can be found in the IDC Manufacturing Insights report. “Asia/Pacific Manufacturing 2014 Top 10 Predictions” (Doc #AP243806, December 2013), which discusses the top 10 predictions for the manufacturing sector in the coming year.
"2014 will continue at pace as Asia/Pacific manufacturers continue to seek new opportunities for either lower cost manufacturing centers or new emerging markets. IDC Manufacturing Insights expect to see more manufacturing activities coming to ASEAN as manufacturers based in China increasingly seek to reduce cost by moving to lower costs Asian countries,” says Dr William Lee, Senior Research Manager, IDC Manufacturing Insights Asia/Pacific.
He explains that from a technology perspective, innovation in emerging economies will be a hot topic for 2014 and beyond, driven by an ever more demanding customer and increased competition from western companies.
"Focusing on innovation from both internal and external sources will require improved means of collaboration. With ever increasing vertical and sub-vertical specific applications being introduced, IDC Manufacturing Insights expect the continued transition to packaged applications, and the increased involvement in the line of business making technology decisions.
"The use of a social business approach will be seen within forward thinking organizations to facilitate the instantaneous spread of information, and the reformation of the organization. This will drive visibility into the supply chain and facilitate the ability to take decisions in 'real time,' based on actual information within specified time limits,” adds Dr Lee.
IDC's Manufacturing Insights Top 10 predictions for the manufacturing sector in 2014 can be separated into three categories -- those related to macroeconomic and country trends; those related to manufacturing process trends; and, generic IT trends.
Three of IDC Manufacturing Insights Asia/Pacific's Top 10 Predictions for 2014 are:
Prediction #2: 2014 will see geographic shifts as new low-cost manufacturing centers develop and new markets emerge
Within the Asia Pacific region, the move to low-cost countries will continue. Manufacturers based in China are increasingly looking to reduce cost by moving to their Asian neighbors. We have already seen companies like Lever Style reducing their headcount in China by one-third to 5000 workers as it moved production for Uniqlo to Vietnam and also looking to move its production for Nordstrom to India. Going forward, IDC Manufacturing Insights expect to see more global manufacturers reducing their dependency on China as their key manufacturing base in view of the now cheaper wages in other emerging Asia countries like Cambodia, India, Vietnam and Indonesia.
Prediction #4: Demand visibility becomes the key driver for supply chain organizations in 2014
The consumer now expects immediate gratification, whether it is from an in-store purchase, online purchase or mobile purchase. The expectation is the same wherever the consumer is situated. Social networks facilitate the instantaneous spread of information and recommendations for products, leading to ‘spikes’ in demand. Visibility into the supply chain and real time ability to take decisions based on the information within specified time limits will become increasingly important in a competitive dynamic market especially in emerging countries. IDC Manufacturing Insights predicts the proliferation of mobile devices at even the smallest retail store to share daily information to the OEM, where we expect the wider adoption of technologies such as in-memory databases to support the sales and operations planning process.
Prediction #7: IT reinvents itself within AP Manufacturing Organizations
With technology ever present for today's individuals, the ability to manage IT is coming into the business, where the deployment and use of new technologies such as cloud, mobility and big data analytics are being made by the business.
This trend is shifting the relationship of CIOs and LOBs as businesses are now beginning to drive the adoption of technologies in the companies. With this change already ongoing, in 2014, CIOs will consider forging new, collaborative relationships with users, giving them freedom to make IT decisions, and teaching them how to assume responsibility for those decisions.
For more information about this report, “Asia/Pacific Manufacturing 2014 Top 10 Predictions” (Doc # AP243806, December 2013), please contact Sheryl Fuertez at +65-6829-7758 or firstname.lastname@example.org.
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About IDC’s Predictions
IDC’s annual Predictions in APEJ draws upon the latest IDC research and a worldwide brainstorming exercise among IDC’s 1000+ analysts. This was followed by an extensive regional review to weigh in on key industry events, user trends, vendor strategies and economic measures that promises to uniquely define the technology trends that would impact and drive the market in APEJ for 2014. Across the globe, following the release of IDC’s global top ten predictions, IDC’s geographic, technology and industry teams will be releasing their own specific predictions in the coming months.
About IDC Manufacturing Insights
IDC Manufacturing Insights assists manufacturing businesses and IT leaders, as well as the suppliers who serve them in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing asset intensive, brand oriented, technology oriented, and engineering oriented manufacturing industries. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world’s leading technology, media, research, and events company. For more information, please visit www.idc-mi.com, email email@example.com, or call 508-988-7900. Visit the IDC Manufacturing Insights Community at http://idc-insights-community.com/manufacturing .
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 48 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.
ContactFor more information, contact:
Dr William Lee
+65 6829 7512