In 2015, Chinese manufacturing industry will be under heavy downward pressure, according to a new report by IDC.
This sector is undergoing restructuring these days, and will bank on innovation to grow in a slow global economy.
Chinese manufacturing companies had to face several problems last year including increasing costs, labor shortages and excessive capacity.
This segment also has to face continuous competition from global companies who are now providing low cost products to customers.
All these challenges are driving the Chinese manufacturers to innovate and transform their business processes.
Transformation and upgrades
These companies urgently need transformation and upgrades to do business in a competitive environment.
Survival of these manufacturers depends on product innovation, lean manufacturing, flexible production and supply chain integration.
IDC predicts that Internet will speed up its penetration into the Chinese manufacturing industry this year.
In 2015, industrial robots replacing humans will be accelerated, and cloud computing will safeguard the management of enterprise supply chain.
Industry 4.0 will set up the model for traditional manufacturers to build intelligent factories and the development of Internet technology will redefine the job of the Chief Information Officer (CIO).
Other trends in 2015
Information security of manufacturing companies will be challenged due to integration of digital world and real world.
Product Lifecycle Management (PLM) will lead to innovations in Chinese manufacturing companies that will explore overseas market with more sincerity this year.
Other trends for manufacturing industry include servitization, miniaturization and specialization.
While boundaries between manufacturers and service industry will become more blurred, miniaturization and specialization will drive development of manufacturing companies.
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