Global links

Manufacturing has been undergoing a major period of change in recent years and, if we are to seize the opportunities open to us as a country, we need to adopt a new approach.

Early manufacturing companies were typically vertically integrated, undertaking as many operations as possible on their own premises. As skills, capabilities and demand increased, subcontractors emerged that could supply parts, sub-systems or services competitively. Typically, such subcontractors would develop long-standing relationships with their customers.

Over the past 20 years, these relatively stable arrangements have changed as competition and customer demand for greater variety have grown. These trends have been encouraged by the removal of trade barriers and falling costs of transportation, increasing the exposure of all manufacturers to global competition. Meanwhile, the reduction of cycle times for innovation has forced companies to adopt new models for product and service development. Manufacturing in the modern world is networked, global and fast.