Manufacturing is more relevant to the global economy than ever, especially as a driver of job creation, according to Jennifer McNelly, executive director at the Manufacturing Institute.
Is manufacturing becoming less relevant in modern economies?
The link between a thriving manufacturing industry and a prosperous economy is strong and direct. When manufacturing investments are strong, a multiplier effect ripples across the economy, creating jobs and growth in other industries. In fact, manufacturing has the largest multiplier of any sector.
To support a prosperous economy and increase productivity, manufacturing must be an integral part of a country’s economic development.
Manufacturing is the industry upon which the economic successes of industrialised nations are built. Today, technology and innovation drive growth within the sector and keep the industry current. Modern manufacturing is again changing the global economic landscape and influencing the direction of our future. Manufacturing supports infrastructure – port, rail and road infrastructure are manufacturing clusters.
What’s more, manufacturing employment in developing countries and economies is growing rapidly. From 133 million jobs in 1970, manufacturing employment grew to 383 million jobs in 2010, according to Unido figures.
Since the start of this century, industrialising economies accounted for a growing share of the world’s manufacturing value. This trend is the result of a gradual shift of production from industrialised to industrialising countries to benefit from cheaper labour, largely improved infrastructure and lower social costs. This has also favoured the growth of industrialising countries’ domestic markets for industrial goods thanks to higher incomes and a fast-rising middle class.
It is critical for both developed and developing states to recognise and understand the relationship between economic prosperity and increasingly sophisticated manufacturing techniques. When a nation moves towards more advanced manufacturing capabilities, it enables the production of more diverse and sophisticated products by using more advanced equipment and processing technologies. Thus it opens the door for growth of jobs that demand higher skill levels at higher wages. This will in turn enable the nation to establish its own capabilities to innovate and set new economic development opportunities.
What is the single greatest factor influencing global manufacturing in 2015?
A skilled and educated workforce, or rather the lack of it, is the greatest influence in global manufacturing. As manufacturing requires more advanced and technological skills, the competition for talent continues to grow. Without a skilled workforce, manufacturers lack not only the talent pipeline they need to sustain and grow production, but also lack the innovative capabilities to develop new products, processes and services.
Access to a highly skilled and educated workforce is the most critical element for innovation success. Increasingly, companies report they cannot find individuals with the skills required for today’s advanced manufacturing workplaces. These skill shortages pervade all stages of manufacturing – from engineering to skilled production.
The key to closing this growing skills gap is public-private partnership – where the education system provides industry-based training and is supported by private sector standards and on-the-job learning.
Governments are starting to shift their focus from promoting competitiveness to the development of capabilities, which is a more effective strategy to improve competitiveness. Instead of focusing on decreasing different costs, the capabilities approach focuses on increasing added value provided by manufacturing. Policymakers are increasingly looking to engage with the private sector to align their incentives, especially regarding skills and human capital development, innovation and trade policies.
Industries with skills and competency-based education enables students to directly control the focus of their career development. Aligning manufacturing education with industry standards sets high expectations and establishes an effective and critical talent pipeline.
Give us one example of a country or industry that has adapted successfully to advanced manufacturing.
In the early 20th century, US manufacturing was the pinnacle of innovation and efficiency. However, in the late 20th century, manufacturing in the US had become bloated and slow to respond to customer demands. Between 1990 and 2010, US manufacturing engaged in a prolonged transformation adopting new procedures, such as lean, just-in-time manufacturing, increased automation and technology. This transformation was difficult, as the US lost of 20 per cent of its manufacturing plants and 30 per cent of its manufacturing workforce. By the end of the 2008-09, recession, US manufacturers had significantly improved their processes and integrated technology to where they could successfully compete globally in any sector. Since then, there have been five consecutive years of job growth and widespread belief in an American manufacturing renaissance.
Now, the challenge the US faces has changed from lacking global competitiveness to finding enough workers to sustain the growth and strength of the industry. In a clear example of adaption, US manufacturers have mounted a national campaign called Manufacturing Day to open their doors, showcase the things they make, and recruit the next generation of skilled workers. Manufacturers across the country are getting engaged and investing in partnerships such as the Dream It. Do It ambassadors’ programme, initiatives to attract women into the industry, and mentor and sponsorship strategies. It is this type of conscious engagement and innovative planning that has allowed US manufacturing to thrive.
If you could see one thing happen in Abu Dhabi, what would it be?
Manufacturing provides a way to improve living standards for global communities and individual families. From increased GDP, to lower unemployment, to a better quality of life, manufacturing can be the answer for a multitude of complex issues. The Global Agenda Council for the Future of Manufacturing needs to collaborate with the other councils in Abu Dhabi to help realise the possibilities that manufacturing can bring to both developing and developed countries.
Individuals are motivated by increasing their quality of life; the private sector is motivated by higher returns and shareholder value; and policymakers by increased jobs and disposable income.
There is a need to align incentives using a common denominator or “language”. By identifying and establishing a common framework to describe manufacturing capabilities and competencies, the council will be able to address the fundamental drivers behind the future development of manufacturing.
The council has developed several case studies to demonstrate the best practices and lessons learnt on the drivers of change for global manufacturing. These case studies will drive public-private partnerships, as the open dialogue between firms, policymakers, workers and industry states grows at a local, national and global level. As manufacturing grows, so do the benefits for individuals, companies and policymakers.
* Courtesy WEF
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Specs
Engine: 3.0L twin-turbo V6
Gearbox: 10-speed automatic
Power: 405hp at 5,500rpm
Torque: 562Nm at 3,000rpm
Fuel economy, combined: 11.2L/100km
Price: From Dh292,845 (Reserve); from Dh320,145 (Presidential)
On sale: Now
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Top investing tips for UAE residents in 2021
Build an emergency fund: Make sure you have enough cash to cover six months of expenses as a buffer against unexpected problems before you begin investing, advises Steve Cronin, the founder of DeadSimpleSaving.com.
Think long-term: When you invest, you need to have a long-term mindset, so don’t worry about momentary ups and downs in the stock market.
Invest worldwide: Diversify your investments globally, ideally by way of a global stock index fund.
Is your money tied up: Avoid anything where you cannot get your money back in full within a month at any time without any penalty.
Skip past the promises: “If an investment product is offering more than 10 per cent return per year, it is either extremely risky or a scam,” Mr Cronin says.
Choose plans with low fees: Make sure that any funds you buy do not charge more than 1 per cent in fees, Mr Cronin says. “If you invest by yourself, you can easily stay below this figure.” Managed funds and commissionable investments often come with higher fees.
Be sceptical about recommendations: If someone suggests an investment to you, ask if they stand to gain, advises Mr Cronin. “If they are receiving commission, they are unlikely to recommend an investment that’s best for you.”
Get financially independent: Mr Cronin advises UAE residents to pursue financial independence. Start with a Google search and improve your knowledge via expat investing websites or Facebook groups such as SimplyFI.
World Cup warm-up fixtures
Friday, May 24:
- Pakistan v Afghanistan (Bristol)
- Sri Lanka v South Africa (Cardiff)
Saturday, May 25
- England v Australia (Southampton)
- India v New Zealand (The Oval, London)
Sunday, May 26
- South Africa v West Indies (Bristol)
- Pakistan v Bangladesh (Cardiff)
Monday, May 27
- Australia v Sri Lanka (Southampton)
- England v Afghanistan (The Oval, London)
Tuesday, May 28
- West Indies v New Zealand (Bristol)
- Bangladesh v India (Cardiff)
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Retail gloom
Online grocer Ocado revealed retail sales fell 5.7 per cen in its first quarter as customers switched back to pre-pandemic shopping patterns.
It was a tough comparison from a year earlier, when the UK was in lockdown, but on a two-year basis its retail division, a joint venture with Marks&Spencer, rose 31.7 per cent over the quarter.
The group added that a 15 per cent drop in customer basket size offset an 11.6. per cent rise in the number of customer transactions.
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
COMPANY%20PROFILE
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The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
Company: Instabug
Founded: 2013
Based: Egypt, Cairo
Sector: IT
Employees: 100
Stage: Series A
Investors: Flat6Labs, Accel, Y Combinator and angel investors
Mohammed bin Zayed Majlis
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Company%20Profile
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