South African manufacturing is facing a range of challenges that the sector must meet and beat if the sector is to take its rightful place in the SA economy and beyond SA.
A complete revival of the South African manufacturing sector may be some years away yet, but a review of the first half of 2014 carried out by global research and advisory services firm IDC reveals a series of positive indicators for the industry's future direction. While numerous challenges remain, most notably around skills shortages and the adoption of 3rd Platform technologies, IDC expects IT spending in
In a good position to undergo transformation
There have been justifiably strong calls for action to save
These efforts have already succeeded in stabilizing the manufacturing environment somewhat, and IDC believes the industry is now in a good position to undergo the process of transformation. Indeed, the improved state of the market and rejuvenated consumer demand should see an end to cost-reduction tendencies and result in spare manufacturing capacity gradually being utilised once again.
SA has great potential
"The country badly needs a generally accepted, long-term strategy for the sustainable development of primary manufacturing to be put in place," continues Kuban. "Such an approach would allow
The impact of foreign direct investment (FDI) is strongly visible in South African manufacturing, and in many regards has facilitated and accelerated the transition of technology. Manufacturers' IT environments are mostly based on packaged software implemented and backed by large international IT vendors. As mentioned above, the direct presence of global IT vendors is extensive in
Big Data business cases will be developed only sporadically
That said, IDC believes there is a gap in the implementation of so-called '3rd Platform' technologies. With improved Internet infrastructure and connectivity, the adoption of cloud computing should become a greater priority for South African manufacturers. Social technologies and mobility are expected to record growing interest across
The IDC Manufacturing Insights report South Africa Country Highlight: South Africa Manufacturing in Transformation presents an in-depth survey and analysis of the IT drivers and trends in the South African manufacturing industry, examining core industry sectors, IT and business challenges, IT spending preferences, and the factors that will influence IT investment decisions in the future.
About IDC Manufacturing Insights
IDC Manufacturing Insights is an advisory services and market research firm that closely follows the payer, provider, and life-science segments of the healthcare industry, with special emphasis on developing and employing strategies that leverage IT investments to maximize organizational performance. For more information, please visit www.idc-mi.com, email firstname.lastname@example.org, or visit the
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