Re - shaping th e futur e af ter COVI D -19
REVIVING AUTOMATED DOMESTIC MANUFACTURING
The resilient companies had
and development institutions, priorities, and occupations? Every country will
Western countries relied on off-shore
have to re-examine their supply chains
flexibility, cut costs, and built a
supplies for necessities, but now they
for critical health and livelihood related
can see the downside. Governments will
growth foundation to capture market
products. There will likely be a surge in
certainly revise domestic manufacturing
producing pharmaceuticals, equipment,
as part of their plan to build up strategic
and medical supplies locally. Countries
resilience after the current crisis.
So how will the pandemic re-shape health
without the existing capacity will want
created financial and operational
opportunities after the crisis. They had invested in software technologies, which gave them greater
to develop the tools needed as soon as
Automation will be a crucial component
possible.
predictability and efficiency - giving them
in reviving domestic manufacturing.
a competitive edge. Recent advances
Advanced automation and robotics
in AI and IoT technologies have enabled
will drastically increase productivity in
therapeutics, vaccines, and non-
tremendous efficiencies in predictability,
manufacturing processes. Automated
capacity, availability, and flexibility
medical methods of prevention.
manufacturing will replace low-skilled
of supply chain and manufacturing
labour with new jobs and opportunities for
operations. Digitisation is a fundamental
This could mean preventing deaths,
digitally savvy workers.
element for building sturdy chains. It
More countries will invest in research,
economic losses, and livelihoods for
makes the identification and recruitment
millions of poor people around the world.
DATA INFRASTRUCTURE WILL BE A STRATEGIC ASSET
A GOLDEN OPPORTUNITY IN THE GLOBAL SUPPLY CHAIN
The pandemic has made accessibility
McKinsey found that companies that
to reliable, real-time data an absolute
embraced these technologies earlier were
The COVID-19 pandemic has hit
necessity, especially when it comes to
already seeing a 7% growth in revenue
investment and global trade at an
coordinating the right medical response.
over their peers.
unprecedented speed and scale.
Data will become a more strategic
Multinational companies faced an initial
resource across multiple facets of business
COVID-19 has caused an economic and
supply shock and later a demand shock as
and community.
social downturn, but it will create a much
more countries ordered people to stay at
of new suppliers far less time-consuming.
deeper divide between companies who
home. Individual consumers, businesses,
This requires a significant investment
have just started to digitise and those
and governments struggled to procure the
in data connectivity, acceleration in
further along in their digital journey.
necessary materials and products.
developing the 5G networks and push for
The healthcare sector’s scramble for
indicators. It means the manufacturing
A SHIFT TO VIRTUAL COLLABORATION
protective equipment laid bare the
sector will significantly accelerate the
Manufacturers still require people to
inherent risks of inventory and single-
deployment of industrial IoT. Such
work physically on-site; operators to run
sourcing models driven exclusively by cost
advancements include sensing, data
machines, and maintenance staff to
control. As Chinese factories were closing
visualisation, remote collaboration
repair and maintain them. Contactors and
down, manufacturers struggled due to a
tools, and AI-based insights across their
external vendors need to access the site
lack of flexibility in their supply base.
operations.
to support operations. However, social
It forced every country to conf ront the
Data is a strategic asset to companies
f ragility of the modern supply chain. To
and a key factor in their competitive
reflect on its dependence on the rest of
advantage.
valuable insights into leading economic
distancing measures could render nearly
the world to maintain its way of living.
Now countries have the opportunity
DIGITISATION WILL BECOME A COMPETITIVE ADVANTAGE
50% of on-site staff jobless. Even as manufacturers face this dilemma, we will see the rapid adoption of remote diagnostic, collaboration, and management tools. It will lead to the
After the Great Recession, McKinsey
emergence of a “virtual shift.” We’ll have
diverse supply chains.
analysed the performance of publicly
a team of experts working remotely,
traded companies and found that only 10%
guiding, and supporting the reduced
Some will want to decentralise their
were more resilient to the crisis than their
“physical shift” of on-site personnel.
manufacturing capacity and consider
peers.
to design stronger, smarter, and more
local production. Policymakers also have an opportunity to consider whether certain products need local or regional manufacturing.
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I N T E R N AT I ON AL INVE STO R MAGAZ INE