How the industry views its opportunitiesand challenges About the survey Introduction3Key findings3Opportunities and objectives5Risks and challenges8Supply chain and geopolitics13ESG and climate17Risk management and resilience20Conclusion24Survey sample and methodology25 When September – October 2024. Who 400 senior decision makers, includingowners, CEOs, CFOs, CROs and directorsand managers of risk, finance, operations,human resources, communications,compliance and marketing. Where Countries across Europe, North America,Asia-Pacific and Latin America. Sectors Electrical equipment and appliances,computers and devices, clothes andtextiles, chemicals, petroleum products,plastics and rubber products, metalsand metal products, furniture, woodproducts and paper, machinery, printing,transportation equipment. Size 18% of companies valued US$250m –US$500m; 23% US$500m – US$1bn;28% US$1b – US$5bn; 15% $5bn – $10bn;18% over US$10bn. Find full details of our sample and methodologyon page 25. Introduction What’s the future for manufacturing? This is a time of huge transformationand possibility in manufacturing, assmart technologies make productiongreener, safer and more efficient.But it’s also an era of extraordinaryvolatility, uncertainty and risk. Key findings Sustainability is top opportunity 63%ranked sustainable manufacturingamong their greatest businessopportunities, signaling a desire toturn change into business advantageand use its potential to attractcustomers and investors. As the industry heads into the second half of the2020s, both of these realities hold true. Advancedmanufacturing systems offer huge potential tooptimize operational efficiency, manage supplychains and respond to fast-changing demand,while improving sustainability. Cyber is biggest risk factor 53%named cyber security among theirgreatest risks to business success, while60% said it was their biggest supply chainrisk, reflecting a rise in malicious activityby criminals and state actors. On the other hand, threats such as trade wars,cyber security, economic instability and supplychain disruption loom ever larger in a more uncertainworld, putting pressure on profitability and growth. Fears of trade barriers are rising How is the industry adapting? 76%of manufacturers said trade disputesand protectionism were among theirgreatest geopolitical concerns as politicalinstability increases uncertainty forbusinesses and supply chains. In our global manufacturing survey, we asked 400senior decision makers from around the worldhow they view this conflicting and fast-changinglandscape, what they see as their greatest challengesand opportunities and how are they managing theirrisks and building resilience for the future. Product liability uncertainties grow 41.5%did not agree that it’s clear whois responsible when a product failsbetween them, the component supplieror software developers, posingcontractual and liability concernsfor makers of complex products. We found that fears about cyber security aredominating as dependence on technology increases,with malware attacks and the threat of gray zoneaggression by state actors rising. But there isoptimism too about the opportunities of sustainablemanufacturing and the potential of technologies todeliver efficiencies and unlock solutions to the risksand issues manufacturers face. Managing risks is more challenging 12%said their ability to manage andmitigate their risks was completely withintheir control, suggesting firms are facinga widening range of external factorsbeyond their ability to influence. Geopolitical uncertainty Greatest opportunities In 2025, companies face rising economicuncertainty, given the new US administration’stendency to use tariffs as a bargaining chip.Globalized firms face profound strategicquestions about how far the US and EU will goin decoupling from China. Escalation of conflictsin Europe and the Middle East will remain athreat. This will test companies’ resilience andincrease the potential for business interruption. Sustainable manufacturing63% Supply chain disruption As well as trade and political tensions, thegrowing complexity and interdependencyof supply chains, as well as the adoption oftechnologies such as AI and associated cybersecurity concerns, could increase the risk ofdisruption across multiple geographies andindustries. Companies should strive to achievefull visibility over their supply chain, identify andassess the risks linked to their critical suppliersand develop their monitoring and responsecapability for unexpected events. Cyber security threats53% Cyber-crime and state action The threat of bad actors, both criminalsand states, targeting critical infrastructureand manufacturing, is a growing concern.Rapid digitalization of systems, operationaltechnologies and processes are expanding theIT footprint and the surface area for potentialcyber-attacks. Firms should regularly reassesstheir vulnerabilities and strengthen their cyberse