Global Insight | January 2025

Redefining manufacturing: Trends that are shaping the future of global manufacturing and supply chains

In the latest (2024) Annual State of Manufacturing Report published by Rockwell Automation, global manufacturers detailed a tough operating climate of inflationary pressures, high energy prices and ongoing skills shortages. This report highlights a pressing need for operational efficiencies and streamlining within global manufacturing supply chains, key motives behind the acceleration of digital transformations and the embracing of new technologies and automation. All of this is prompting manufacturers to re-evaluate and re-design their global operation strategies to adjust and adapt.

The COVID-19 pandemic revealed the extent to which production strategies and global supply chains are vulnerable to shocks and disruptions, with the negative effects continuing to reverberate across the world today. Enterprises were forced to transform their supply chains in order to strengthen their resilience. Emerging technologies and process innovations, that promote collaboration and build stronger networks, were proven to be vital to business durability, sustainability and competitiveness.

One standout digitalisation example showcasing the future of manufacturing is at Siemens Electronics Works Amberg, who are increasingly reliant on their smart machines and interconnected devices to produce more than 17 million Simatic components yearly and seamlessly handle 350 production changeovers daily. Here, the deployment of “digital twin” technology – a computerised replica of the entire production plant – runs digital simulations. The impact of this digitalisation reportedly increased productivity at Siemens by 1,400%. There are of course similar advances happening in all types of secondary and tertiary manufacturing sectors, from food & beverage, to defence, aerospace, chemical automotive, construction and more.

Given the significance of these developments, I am honoured to present this publication, “Trends that are shaping the future of global manufacturing and supply chains”, which highlights how fast modern manufacturing is evolving and the transformative steps being deployed. Most of which is being driven by changing market demands, technological advancements, labour shortages, inflationary fluctuations, climate change, environmental pressures and geopolitical uncertainties.

This publication brings together a wealth of knowledge, insights, and perspectives from experts, thought leaders, and practitioners at the forefront of the global manufacturing industry. Their contributions explore several ways in which the intersection of technological innovations can be influenced by specific supply chain challenges and workforce shortages, as well as the new processes and practices companies are adopting to reduce supply chain vulnerability and boost transparency. This move towards Smart Manufacturing and Industry 4.0 is testament that our global supply chains require this level of ‘real-time’ transparency and digital reforms.

At Nexia, we aim to extend our business reach multinationally. The intent of this publication is to help those within the manufacturing sector navigate the current challenges they may be facing with adaptability. We also aim to shed light on the many ways global companies can access expertise and financial guidance to embark on their innovation journey with confidence.

For example, if a new digital supply chain generates record-breaking profits, what does that mean from a tax perspective? For global manufacturers, which jurisdiction is this recognised in? Are there tax incentives and R&D relief for investing in innovative technologies?

Our approach focuses on:

Strategic Tax Planning: Helping manufacturers optimise their tax structures for growth and profitability.
Facilitating Investment: Guiding global manufacturers to leverage tax incentives and R&D relief
Funding Assistance: Ensuring that global manufacturers are adequately funded by connecting them to manufacturing-friendly financiers to support their short-term and long-term funding requirements
Corporate structuring and business support services: Advice on corporate and legal structures and entities to support companies and their manufacturing needs.

I would like to express my gratitude to all the contributors who have shared their valuable insights and encourage all readers to approach each topic with curiosity and enthusiasm, as we offer a glimpse into the future of an industry estimated to be worth USD$944.6 billion by 2030.