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February 18, 2021, New York, USA – The global general manufacturing experienced a bleak period during 2019-2020, as demand for high-end manufactured goods witnessed a fall in demand, due to the covid-19 crisis. However, thanks to the rising demand for exports in key economies like the US, and increased capital growth, the global manufacturing market will witness tremendous growth in the near future. The general manufacturing market will likely reach over 1 trillion by 2023, rising from USD843.7 billion in 2019. The market will clock a robust CAGR of 7.3% during the 2021-2027 period.
Furthermore, trends like automation, industry 4.0, IoT driven manufacturing will promise major cost-cutting and product advancements for manufacturing in the near future. Technologies like 3D printing have already resulted in key product enhancements in important new avenues for sectors like healthcare. Earlier, plastic or metal implants for broken legs could take up a few weeks. However, 3D printing models in Singapore hospitals have brought personalized implants within a few days to patients. The 3D printing technology experiment has also resulted in product improvements, more options for patients, and lowered costs, thanks to their ability to deliver manufacturing on a need-to-produce basis.
Covid-19 Impact Remained a Major Restraint to Production in 2020
According to industry reports, the covid-19 remained the worst restraint to manufacturing growth since the recession that hit in 2008. The pandemic led to worldwide shutdowns, leading to major disruptions in supply chains, and subsequently in manufacturing activity. According to the Oxford Economic Model, the decline in manufacturing in 2020 averaged -6.3% globally, while it is expected to rise to 3.5% during 2021. Furthermore, the US industrial production fell by -16.5%, and US factory orders dropped by -22.7% in April 2020. The production industrial index in the US stood at 105.7 in December and remained well below the pre-pandemic levels of 110. However, the good news is the production is expected to rebound in growth in 2021, as the trajectory of the decline has slowed, and industrial capacity utilization reached an impressive 74.5% in December, rising from 64.1% in April. The pre-pandemic levels of utilization stood at 77%. The growing demand for manufactured goods and increasing disposable incomes will drive notable growth for the manufacturing industry during the 2021-2027 period.
Growing Advancements in Manufacturing to Remain Key to Growth
According to a 2020 official report from the US government, the real GDP increased by 4.0% in the fourth quarter of 2020. The recovery from sharp declines earlier in the year will likely continue as real GDP signaled a strong growth in the third quarter with a 33.4% growth. Moreover, manufacturing remains a backbone of this growth, as US manufacturing produces 18.2% output of the global production, followed by 17.6% production in China. The global gross domestic manufacturing stood at $2.33 trillion, in 2018, making up 11.6% of US economic output. Furthermore, according to the US department of commerce, US manufacturing accounts for 90% of all US patents registered annually in the country.
Moreover, the covid-19 pandemic has also forced manufacturing companies around the world to embed the latest technological advancements to prepare for the future. According to KPMG’s global manufacturing outlook survey, 48% of global manufacturers believe the pandemic has accelerated progress through digitalization, and other trends by months, while 48% believe it has accelerated progress by years.
Growing Focus on Manufacturing Initiatives Globally to Provide Promising Roadmap for the Future
The United States Department of Commerce announced some key initiatives to bolster manufacturing in the country in 2003. Such initiatives have become commonplace around the world, as manufacturing remains a backbone for GDP growth in various ways. Today, large countries like India have also branded their own initiative like, ‘Make in India’ to bolster its development. These initiatives in the US have focused on key issues concerning manufacturers including the high cost of healthcare, reducing the burden of lawsuits, ensuring a reliable supply of energy, streamline regulations, and gaining open access to American products around the world. This movement is likely to boost the manufacturing base. The growing demand globally for free-and fair movement of goods, and services, along with various free trade agreements, and the formation of large trading blocs like the EU. The growing movements to support manufacturing and keen initiatives around the world will drive major growth for the global manufacturing market in the near future.
Smart Manufacturing Will Remain Key to Growth as IoT Devices to Outpace Demand in the Consumer Sector
According to the GSMA intelligence report, industrial IoT devices will reach 13.8 billion in total by 2025, overtaking the demand for IoT devices in the consumer sector. The IoT devices in manufacturing remain a major promise for a wide variety of applications including monitoring, surveillance, manufacturing, quality checks, 3D printing, among others. Furthermore, the manufacturing industry will likely take to IoT infusion as it has been plagued by a wide range of issues including intense competition, high-value proposition in quality goods, uncertainties in quality of raw material supply, and unreliable labor costs. The IoT devices of the future promise a gateway for manufacturing companies to be more agile, value-driven, compliant, and efficient. The IoT devices are also essential for the needs of tomorrow like connectivity, a boost in productivity, advanced security, and automation. The growing demand for automation, industry 4.0, and robust benefits like digitalization will promise major opportunities for growth in the global manufacturing market.
The global manufacturing market report will be segmented as follows with a keen eye on smart manufacturing.
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