To meet the world’s need for materials and industrial goods, manufacturing must reinvent itself through innovation, digitisation and automation.
In the Fourth Industrial Revolution, manufacturers are a beacon of innovation - embracing the use of such as automation, 3D printing and AI to boost their productivity, efficiency and agility. Companies - for example within wholesale, agriculture, mining and technical services, together forming the Make domain - are already using these advances to reinvent themselves. As a result of these efforts, up to US$1.8 trillion of manufacturing revenues could be redistributed in 2025.
Other powerful catalysts include the need to insulate supply chains from climate shocks, the push to improve sustainability and circularity, the growing demand for workers with specialised skills, and the impact of geopolitical tensions on trade routes. Together, they’re combining to forge a major sectoral reconfiguration in manufacturing.
Businesses that grasp the full potential of the Make domain will have the edge in 2035.
To obtain a quantitative picture of what the Make domain might look like in 2035, we modelled the potential global economic impact of two of the most pressing megatrends: technological disruption (specifically disruption from AI) and climate change. The result is three divergent scenarios, corresponding to a range of outcomes, from a low of $33.91 trillion to a high of $36.84 trillion.
The nature and scale of the new business opportunities that emerge in the Make domain will depend on how AI adoption and climate action progress. Your strategy should account for a range of possible outcomes. Three scenarios can help leaders in the Make domain consider what the future might bring.
The process of reinvention needs to start now, with a focus on priorities that respond to the reconfiguration that’s already underway. This means driving hard towards a set of innovation imperatives, securing competitive advantages in areas such as technology and trust, and turning obstacles such as climate threats into enablers of growth.
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Partner Industrial Manufacturing & Automotive, PwC Netherlands
Tel: +31 (0)62 233 25 30