With 74 percent of manufacturing company CEOs responding to KPMG International's 2016 Global Manufacturing Outlook (GMO) reporting growth as a high priority over the next two years the competition for market share is fierce. And, many are planning rather aggressive strategies in the pursuit of their growth objectives.
More than half of the manufacturing CEOs responding to the KPMG GMO survey categorize their growth strategies as ‘aggressive' and more than one-in-six say their growth strategy is ‘very aggressive'.
According to Doug Gates, KPMG's Global Chair of Industrial Manufacturing: "There are fierce competitions being fought over every scrap of market share available and we will certainly see winners and losers. Maintaining the status quo will not drive growth. Manufacturers need to do something different in order to win market share in today's environment."
According to S.V. Sukumar, Partner and Head of Industrial Manufacturing, KPMG in India, "Global manufacturers cannot afford to ignore India any longer because domestic consumption is on the rise. Supported by growing consumer affluence and strong economic growth, India's domestic market has become one of the largest in the world. And as the Indian government invests further into infrastructure such as roads, rails and ports, the domestic market is only expected to grow"
Indeed, KPMG's GMO survey shows that the responding CEOs do have plans to achieve their growth objectives through multiple channels. With a preference for organic growth over M&A activity (61 percent versus 40 percent respectively), most manufacturing CEOs say they will leverage the opportunities in entering new markets and making changes to current service and product mixes.
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