McKinsey: Manufacturing the Future: The Next Era of Global Growth and Innovation 

A real Mckinsey presentation on manufacturing innovation.

McKinsey: Manufacturing the Future: The Next Era of Global Growth and Innovation

Key Learnings from the Presentation

Presented on November 5, 2013, by David O’Halloran and Jeff Sinclair, the presentation outlines the evolving role of manufacturing in the global economy, emphasizing its shift towards innovation and productivity promotion in advanced economies, its reliance on services for effective operation, and the blurring boundaries between manufacturing and services sectors. Here’s a structured summary of the presentation.

Changing Role of Manufacturing

• Manufacturing’s contribution to the economy evolves as nations mature.
• In advanced economies, manufacturing promotes innovation, productivity, and trade more than growth and employment.
• The sector increasingly relies on services to operate effectively.

Diverse Manufacturing Landscape

• Manufacturing is not monolithic; it comprises five distinct industry groups, each with specific drivers of success.

Dynamic New Phase

• As a new global consuming class emerges in developing nations, and innovations spark additional demand, global manufacturers face substantial new opportunities.
• However, this environment is more uncertain.

Global Manufacturing Trends

• Globally, manufacturing accounts for approximately 16% of global GDP and 14% of employment.
• Economies industrialize, leading to rapid manufacturing growth, but once its share of GDP peaks (around 20-35%), it declines along with employment.
• Rising wages drive consumers toward services, making services more critical for growth.

Blurring Boundaries

• The traditional view that manufacturing and services are separate sectors is outdated.
• Service inputs (logistics, advertising, etc.) play an increasing role in manufacturing activities.

Global Opportunities and Long-Term Future

• Factors point to an era of truly global manufacturing opportunities.
• Manufacturing remains vital for both advanced and developing economies

About McKinsey

McKinsey & Company stands as a premier entity in the global management consulting sphere, initiated by James O. McKinsey in 1926. Anchored in New York City, this firm has carved a distinguished position in the consulting arena, offering strategic guidance across the globe to a diverse clientele that includes businesses, governments, and various institutions.

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