IDC Manufacturing Insights has forecast moderate growth in the Singapore economy during the next five years.
Even though the growth is moderate, it is good news as per the research firm as the industries may be hit by an impending financial crisis.
In its report 'Asia/Pacific (Excluding Japan) Manufacturing IT Spend 2011-2015 Forecast', IDC also predicts an increase in manufacturing IT spending, and says it is set to grow from US$885 million to US$1.05 billion by 2015.
The high-tech sector will spend most on IT in 2011 and the amount will account for about half of all IT spending in the Singapore manufacturing industry.
Singapore's chemical sector will rank second in terms of IT spending growth.
Immediate payback demand
Singapore companies will spend on IT but they are still very cautious about the investment because of the unstable world economy. For this reason, companies search for an immediate payback when they make such an investment.
The research firm also expects growth for the consumer product process manufacturing, automotive, and high-tech electronic components sectors. The management of supply chain risk will also get more attention over the coming months.
"With the increasing complexity of products and manufacturing processes coupled with increasing costs and competition, manufacturers are aware that they need to be nimble and constantly improve in order to be competitive. But as costs rise, manufacturers need to get much cleverer at how they compete," said Dr. Christopher Holmes, head, International, IDC Manufacturing Insights.
"Overall, the less developed manufacturing organisations are expected to take the first step in business and manufacturing automation in 2011. For the more advanced companies, we will see more specialist application adoption, such as supply chain and product lifecycle applications."
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