Thu, 20-Nov-2008
Sunset industry? Definitely not
Lord Bhattacharyya
Published: Aug 22, 2008
Asia - Professor Lord Bhattacharyya doesn't agree with industry players' forecast of job cuts in the manufacturing sector, believing the industry is anything but sunset.
"Manufacturing is still 25% of Singapore's GDP, and there's no reason that should change," Lord Bhattacharyya, director of International Manufacturing Centre at the university of Warwick told ProcurementAsia.
Despite analysts' predictions, he believes the manufacturing industry is far from becoming a "sunset" industry.
"This issue of manufacturing being 'sunset' is discussed ad infinitum for the last 40 years as far as I've known," he said. "But in the end everything has to be made and processed."
Instead of it becoming a sunset industry, Lord Bhattacharyya said it was more likely that manufacturers are going to evolve to move from low cost products to produce high-value products, R&D and design, much like what Singapore manufacturers are doing.
"As manufacturers move up the value chain, Singapore is poised to be right at the pinnacle of that because of the enormous skill base and the amount of spending they do on R&D," he said.
What manufacturers should keep in mind, however, is to centre innovation around their operations, he said. "One of the key issues manufacturers will face going forward is increased competition. The drive for new and innovative products will be what makes the manufacturer succeed," he said.
"Manufacturing is still 25% of Singapore's GDP, and there's no reason that should change," Lord Bhattacharyya, director of International Manufacturing Centre at the university of Warwick told ProcurementAsia.
Despite analysts' predictions, he believes the manufacturing industry is far from becoming a "sunset" industry.
"This issue of manufacturing being 'sunset' is discussed ad infinitum for the last 40 years as far as I've known," he said. "But in the end everything has to be made and processed."
Instead of it becoming a sunset industry, Lord Bhattacharyya said it was more likely that manufacturers are going to evolve to move from low cost products to produce high-value products, R&D and design, much like what Singapore manufacturers are doing.
"As manufacturers move up the value chain, Singapore is poised to be right at the pinnacle of that because of the enormous skill base and the amount of spending they do on R&D," he said.
What manufacturers should keep in mind, however, is to centre innovation around their operations, he said. "One of the key issues manufacturers will face going forward is increased competition. The drive for new and innovative products will be what makes the manufacturer succeed," he said.