Following a challenging two years within the manufacturing sector, management consulting firm Kearney has announced that entries for the 2023 Factory of the Year competition have opened.
As the global and local economy starts to find its feet and adapt to a new normal, the opportunities for the manufacturing sector are strong. Companies are revisiting their supply chains, and the climate crisis has stimulated strong growth in manufacturing for green energy technologies, and countries have had to reduce their reliance on global sourcing, says Kearney Factory of the Year lead and consulting services manager Frances Phillips.
Even pre-Covid-19, the South African manufacturing sector faced several headwinds with the increasing cost of labour and electricity reducing the competitiveness of local manufacturers. The latest figures show that the local economy has bounced back to 20%, larger than it was in the second quarter of 2020, with manufacturing continuing to play a critical role accounting for about 13% of gross domestic product and driving wide socioeconomic impacts, she says.
“The time is ideal for local manufacturers to learn from each other and best-in-class international manufacturers to ensure their readiness to harness the opportunity the market presents. Making this sector increasingly competitive through optimization and building resilience to achieve world-class excellence must be a priority for every manufacturing firm,” she says.
Additionally, all entries receive a detailed survey, which allows for an in-depth benchmarking exercise across critical operational performance metrics, providing participants deep insight on how they compare to leading manufacturers as well as proposals on how they can improve in underperforming dimensions, Phillips says.
“The holistic nature of the assessment gave us meaningful insight into how we measure up against international benchmarks in all the categories. Our result is a testament to the dedication and commitment of all our employees,” says clean mobility company Purem by Eberspaecher MD Kieron Jordaan. The company was the 2019 overall Factory of the Year winner.
The competition is the world’s longest-running benchmarking contest for the international manufacturing sector and was first initiated by Kearney in Germany in 1992.
It was launched in South Africa in 2018 in partnership with the Department of Trade, Industry and Competition, the Council for Scientific and Industrial Research, Manufacturing Circle and Manufacturing Indaba, with the objective of awarding manufacturing excellence and driving resilience in the South African landscape.
“The Factory of the Year competition provides an ideal starting point for manufacturers to identify opportunities for improving competitiveness,” says Phillips.