According to KPMG, manufacturing executives are feeling the implications of the pandemic and climate change. From findings in the Global Manufacturing Prospects 2022 report, execs are increasingly focusing on smart digitisation and ESG goals.

Maintaining a secure supply chain with an ESG focus and creating value for shareholders 

The findings of the Global Manufacturing Prospects 2022 report are based on 

A global survey of 150 CEOs of manufacturing companies based in Europe, North America and the Asia-Pacific, say they have learned two main lessons because of the pandemic: 

• A resilient supply chain is of the utmost importance
• The need to invest in new technologies will strengthen resilience and avoid business disruptions

Results from the Global Manufacturing Prospects 2022 report showed:

• 68% of CEOs say they will ensure their supply chain is resilient, in preparation the next big global disruption 
• 77% agreed they felt a ‘stronger emotional connection to the purpose of their company’ since the pandemic started
• 67% said that the main objective for their organisation was creating value for shareholders 
• 31% said ESG improves financial performance
• 54% claimed the impact of ESG had a neutral neutral effect on their business
• 92% said that the greatest impact on customer relationships was in ‘conveying a sense of purpose’ 
• 71% recognise the global challenges caused or amplified by the pandemic, such as income equality and climate change, as the biggest threat to long-term growth

Manufacturing executives are creating a ‘habitable planet’ with digital transformation

It’s evident that manufacturing executives are anticipating future trends (as well as disasters) and are embracing digital transformation, while building resilience.

“The need for resilience is forcing companies to be more agile and make better decisions faster,” said Grant McDonald, Global Sector Leader, Aerospace & Defence at KPMG International. “Digitisation plays a vital contribution to this.” 

“Manufacturers should now focus on a twin transformation: intelligent digitisation and ambitious ESG goal-setting,” said Stéphane Souchet, Global Head of Industrial Manufacturing at KPMG International. “If they are executed effectively, they are likely to reinforce each other to create a more competitive enterprise and a more habitable planet.”