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AP manufacturers to focus on emerging markets in 2014: IDC

Nurdianah Md Nur | Dec. 10, 2013
They are also expected to look at developing new low-cost manufacturing centres and using new technologies to drive connectivity and visibility across the entire value chain next year.

Asia Pacific manufacturers will be focusing on emerging markets, developing new low-cost manufacturing centres and using new technologies to drive connectivity and visibility across the entire value chain in 2014, predicts IDC Manufacturing Insights.

IDC Manufacturing Insights forecasts new markets and low-cost manufacturing centres to emerge as manufacturers within the region are expected to continue moving to low-cost countries such as Cambodia, India, Vietnam and Indonesia. "More manufacturing activities are expected to come to ASEAN as manufacturers based in China are increasingly seeking to reduce cost by moving to lower costs Asian countries," said Dr William Lee, senior research manager at IDC Manufacturing Insights Asia/Pacific.  For instance, Lever Style has reduced its headcount in China by one third as it moved part of its production for Uniqlo to Vietnam.

Having visibility into the supply chain and real-time ability to decide based on the information within specified time limits will become increasingly important in a competitive dynamic market. IDC Manufacturing Insights predicts that retail stores will increasingly use mobile devices to share daily information to the OEM (original equipment manufacturer). This will drive the adoption of technologies such as in-memory databases to support the sales and operations planning process.

As businesses are now beginning to drive the adoption of technologies in the companies, CIOs have to consider forging new, collaborative relationships with users. In the coming year, CIOs need to provide users with the freedom to make IT decisions, and teach them how to assume responsibility for those decisions.

These three predictions are part of IDC Manufacturing Insights Asia/Pacific's top 10 predictions for 2014.

 

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