Three priorities for advanced manufacturing in 2022

Advanced Manufacturing and Mobility Business Minute

In this episode, EY global analysts Mohit Ahuja and Julia Rosenthal share highlights from 3Q21 earnings calls of 31 advanced manufacturing companies.

In the resurgence of the advanced manufacturing sector, sustainability, transparency and resiliency have become dominant themes. Companies are centering their future initiatives around these three pillars and aligning their current business operations with them. Furthermore, companies plan to undertake several measures to capture market share in emerging areas, such as electric and autonomous mobility, infrastructure decarbonization, sustainable buildings, and renewable energy.

In 3Q21, manufacturing companies dealt with soaring operating costs, uneven demand patterns and severe value chain breakdowns, and in response, they carried out the reinvention of their supply chains. They also took measures to restructure their business, capital strategy and competitive positioning. As the manufacturing sector continues to recover, it is optimistic that the operating costs will stabilize. Consequently, companies expect that their margins will increase. They are confident that the supply chain disruptions will subside once the effects of a more visible supply chain start to kick in.

Key takeaways:

• The advanced manufacturing sector plans to invest in digital to achieve operational efficiencies, expedite product innovation and improve visibility across the value chain.
• Advanced manufacturing companies are recognizing the importance of meeting customer expectations in order to maintain strong relationships and hold onto their market shares.
• In a bid to transform into sustainable, transparent and resilient businesses, companies are operating proactively. They are launching sustainable products, such as net-zero connected buildings and electric aircraft, to meet their decarbonization targets and enhance ESG reporting. Access to timely and relevant data is helping companies to create transparent and robust supply chains.