Business Strategy: IDC Manufacturing Insights — Country Profile Series: ASEAN FY16
ASEAN as a region has experienced tremendous growth in the past few years primarily due to the availability of labor at competitive wages, renewed policy changes encouraging manufacturing investments, and the recent formation of the ASEAN Economic Community (AEC). Growth in labor wages in China is also another key factor that resulted in increased investments in the ASEAN region. Though labor wage in most of the ASEAN countries is low, it does not provide any substantial advantage unless the associated output per worker (employee productivity) is high. The investing companies are cognizant of this fact and are investing in shop floor modernization technologies to prepare themselves for the future. "To stay competitive and retain its core advantages, the ASEAN community must invest and train its workforce in technologies that allow manufacturing organizations to ideate, design, engineer, collaborate, and deliver better. From a supply side, the use of data analytics and cloud technologies can give better visibility on the supplier shipments and inventories that would aid in mitigating any upstream manufacturing challenges. In addition, information related to end-customer usage patterns can help in improved production scheduling operations and tighter inventory controls," says Sampath Kumar Venkataswamy, research manager, IDC Manufacturing Insights.