Manufacturing in 2010

According to an article by Bob Parker in Industry Week’s Management Metrics newsletter, 2010 will be a year of recovery for manufacturers. However, business models will be fundamentally and permanently changed. What emerges will be an intelligent economy where markets adjust quickly.

Parker is Group VP of Research for IDC Manufacturing Insights. Each year they put together their top ten predictions for the worldwide manufacturing industry. Their 2010 predictions:

Prediction #1: Companies will transform business models to better meet the needs of increasingly demanding customers in both developed and emerging markets.

Prediction #2: IT organizations will look for cost structures that are more variable as they assist in making technology a focal point of business strategies.

Prediction #3: Manufacturing companies will begin the process of fundamentally rethinking their supply chain structures, evolving from a fixed-cost-driven supply network to a variable-cost-driven value network.

Prediction #4: ‘Dynamic Optimization’ dominates capability investment to support redefining the supply chain.

Prediction #5: Manufacturers will look to better align innovation with business strategy.

Prediction #6: Manufacturing companies will become more mature in their use of enterprise product lifecycle management (PLM) applications.

Prediction #7: Manufacturing companies will see factory assets as part of a fulfillment capabilities network.

Prediction #8: Firms will create intelligent fulfillment capabilities networks.

Prediction #9: Smart services and the need for persistent assets create the inflection point for radio-frequency identification (RFID, sensors, and machine-to-machine (M2M) communication.

Prediction #10: Armed with metrics, manufacturers move from sustainability reporting to intelligence.

To see an explanation for each prediction, go to the Industry Week article.