A Strong Committment to Aggressive Growth by Manufacturers

A survey conducted by vaunted accountants KPMG sought the opinions of 350 international manufacturing leaders and executives. These people indicated they wanted aggressive growth in the manufacturing sector for the next two years — until 2018 — by increasing their companies' presence in new markets with the creation of new products.

CEOs of these leading manufacturers cited four main components that make up the most important aspects of this aggressive growth strategy. At the end of the two-year period, companies that implement these strategies wisely come out on top.

New Product Development

New products must be successful as quickly as possible. Companies need to reduce the time it takes to go from the research and development phase to products getting into the hands of customers and clients. Manufacturers should streamline new product development from one end to the other, but companies have to target this process very carefully to implement an aggressive growth plan.

Technology reduces time from development to deployment. Cloud computing allows firms to compile and share data. Wireless sensors gather information that can improve the production process. Manufacturers should go beyond sharing data by learning how to gather information from end users to see how they use a product so companies can improve what they make.

Investing in Technology

Manufacturers that seek aggressive growth need to invest in the right kind of technology as opposed to any technology in general. Data is great, but engineers and plant managers must interpret the numbers correctly. Employees and leaders should understand the strategy behind the technology and not just the fact that plants increased output 10 percent because of the newest upgrade. What does this faster output mean? That's the key question, in this example, that companies must answer to remain competitive.

Prices

Prices are important, especially if companies want to weed out competitors. However, teams should deliver great customer service and a worthwhile product. A lower price means nothing if customers report a ton of problems that a customer service team doesn't know how to solve. That's where the data-gathering process comes into play.

Niche Markets

Aggressive growth into niche markets represents one way manufacturers can gain market share quickly. Earning loyal customers who love the products leads to a core group of consumers who come back to the company time and again. Manufacturers should get to know these customers well so they can improve on products in the future.

Competition among manufacturers might heat up in the next two years, and that's a good thing. American manufacturing had a surprising uptick in June 2016, and those companies can lead the way. Forward-thinking companies that understand these driving forces will probably win versus those that do not.

Manufacturers cannot sustain an aggressive growth pattern indefinitely, but the sector should show some interesting patterns by 2018. Companies that invest in the right tools and develop key products faster earn more profits during this period.

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