Today, manufacturing is not just about making physical products. Changes in demand, the nature of the products themselves, new manufacturing technologies, and digital and networked supply chains generate fundamental changes in the business models of traditional manufacturers.
According to the Deloitte study, “The Future of Manufacturing; making things in a changing world ”, customers demand customization and adaptation as the line between consumer and manufacturer is blurred.
The addition of sensors and connectivity turn “dumb” products into “smart” and, increasingly, into platforms and even into the field of services. As technology advances exponentially, barriers to entry, commercialization, and learning erode. Meanwhile, the border between manufacturers and consumers is increasingly blurred.
Current technology begins to allow production in small quantities to be feasible, on request, according to the explicit need of the client. In this context, intermediaries that create value through the maintenance and movement of inventories are less and less necessary.
In addition, the fourth industrial revolution or Industry 4.0, is here to stay. The convergence of the physical world and the digital world, together with the application of advanced technology in the production line, is going to substantially change the playing field of the manufacturing industry.
At Deloitte, they help capture value in this new competitive environment. This new window offers opportunities, but also challenges that strain the ability of companies to survive in a digital, technologically intense and connected world.
Manufacturing in Mexico: at the forefront in manufacturing competitiveness
It is expected that by 2020, Mexico will occupy the seventh position in terms of manufacturing, surpassing the United Kingdom and Taiwan, and being preceded by South Korea.
Our country is part of the North American Cluster, led by the United States and also made up of Canada. The cluster receives the highest levels of investment and has a strong energy profile, as well as top-notch talent, infrastructure and strong clusters dedicated to innovation, anchored in the United States. Mexico complements this group with more than 46 commercial agreements, competitive labor costs and its proximity to the United States; all together makes Mexico the ideal destination to establish its production centers.
All this has made Mexico one of the largest producers of electronics and their parts, machinery and accessories, ships, and an automotive powerhouse.
Bruno Juanes, Head of Innovation and Manufacturing, commented that the manufacturing world is facing its fourth industrial revolution, which will merge the physical world with the digital one. As a result of this, innumerable opportunities and threats will be generated for traditional business models. "The role of the incumbent manufacturer will be questioned by new technology-based players and will have to adapt to go from generating value through the production of objects, to capturing value from increasingly complex ecosystems and further away from their current role."
Such is the case of the Bic company, located in Cuautitlán Izcalli, State of Mexico, which produces 2 billion writing instruments per year, of which 80% are exported to 47 countries. Mario Berra, VP of Manufacturing for Mexico and Latam, and responsible for the Edoméx plant, said that His investment plans in manufacturing are to continue growing the plant in the Mexican territory. “The export rate is above 50% of what is produced to the 46 countries and just under 50% of the product is what remains in Mexico. The investment does not necessarily have to be reflected in new openings, but in terms of innovation, machine efficiency and optimization of operations ”.
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