High-tech companies expect robust growth in their industry, and they are beefing up their supply chain networks in preparation. This is according to the fifth annual survey conducted for UPS by IDC Manufacturing Insights. The survey, called the “Change in the (Supply) Chain” (CITC), founds that high-tech companies are increasingly entering emerging markets and are exploring 3D printing for new product designs and prototypes.
Additionally, while many high-tech companies still favor off-shoring for cheaper labor, a number have begun “right-shoring,” a blended form of near-shoring and off-shoring, based on cost and efficiency, which outsources low-importance work and keeps critical operations closer to customers. Forty five percent of survey respondents said they use right-shoring strategies, however 47 percent said they off-shore. Near-shoring, which moves manufacturing or assembly closer to the location of demand, continues to gain favor since companies can reduce inventory in transit and retain control over product quality and intellectual property. Thirty five percent of respondents said they near-shore, a gain of 25 percent since 2010.
The survey showed that the growth outlook for high-tech exports is strong. Forty six percent of the respondents said they expect industry exports to grow globally at the current pace for the next two years, while 28 percent of respondents expect faster growth. North American and Latin American respondents were the most optimistic about the future of high-tech exports.
IDC polled 516 senior supply-chain executives at high-tech firms in North America, Europe, Asia Pacific and Latin America.