Did you know that more than 80 percent of the world’s hard drives are manufactured in Asean? That is an impressive figure even for the region, which is the fifth-largest economy in the world.
Manufacturing is often perceived as a traditional industry heavily reliant on equipment and processes. Beyond the big machineries, conveyer belts and assembly lines, manufacturing is in fact very diverse and has long helped shape the economic growth in this region. The Boston Consulting Group also estimates that Aseanmanufacturing output can impressively grow by an additional US$400 billion to US$600 billion a year by 2030 from 2020 levels.
However, Asean manufacturers may risk falling behind as they face disruption from newer technologies, and more recently, pressure from a pandemic that has changed the world economy. Manufacturing and the supply chains that support it are under intense stress today and companies will have to look to digitalise through modern information technology (IT) to adapt to newfound changes.
What’s Driving Modernisation in Manufacturing?
What sets manufacturing apart from other industries is that the drive for modernisation is not led by the workforce needing to adapt to remote or hybrid work environments. It is also not about reducing costs. Instead, many manufacturers are re-examining their IT models because of the impact of the pandemic and the cascading effects on our world at-large.
According to Nutanix’s Third Annual Enterprise Cloud Index (ECI), three out of four (75 percent) manufacturing respondents claim COVID-19 has caused IT to be viewed more strategically in their organisations, and also sharply increased their cloud investments.
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8 November 2021