A newly released international survey of senior manufacturing executives highlights growth as being a key priority for most enterprises, which, in the context of weak underlying economic conditions, is suggestive of a “brutal competitive fight” for market share in the coming two years.

In fact, 74% of the 360 respondents to the 2016 KPMG International Global Manufacturing Outlook (GMO) described growth as a “high priority”, with more than half describing their strategies for achieving growth as “aggressive”.

Drawn from the aerospace and defence, automotive, conglomerates, medical devices, engineering and industrial products, as well as the metals sectors, more than 80% of respondents anticipate changes to their range of products and/or services, while 92% indicate that they expect to enter new geographic markets to drive growth.

The majority recorded a preference for organic growth over mergers and acquisitions, with 44% of respondents from China and 47% of those from India saying that gaining access to new markets is the primary reason behind their foreign investments.

“There are fierce competitions being fought over every scrap of market share available and we will certainly see winners and losers,” KPMG’s global chair of industrial manufacturing Doug Gates warns.

Respondents to the GMO also show a progression to an integrated manufacturing strategy and having a digital factory, with 25% of respondents saying they have already invested in three-dimensional printing and additive manufacturing technologies. An equal number say they have already invested in artificial intelligence and cognitive computing technologies.

The use of robotics on the manufacturing floor is likely to attract significant investment, with two-fifths of survey respondents saying they will definitely channel significant amounts of their research and development investments towards robotics over the next two years.

In light of the “tentative state” of the South African manufacturing sector, director and sector head of construction, industrial and automotive markets Fred von Eckardstein argues that South Africa should pursue a “bold and brave industrial policy”.

“Business, labour and government urgently need to form a strong bond to focus on skills development, jobs, growth and export markets,” he says, adding that an export-led manufacturing economy is possible when the political framework is stable, the labour force is competitive and where business is encouraged to transform the local economy.