Global Trends

A major global re-structuring is underway in manufacturing. This has taken the form
of re-location and shifting of manufacturing, design, and service activities from older ndustrialized countries to developing countries where cost reduction can be affected without compromising reliability. In some newly industrialised Asian countries, such
activities have generated major global players and conglomerates, who offer complete end-to-end services in the supply chain, whether as manufacturers of piece parts and systems, or providers of manufacturing related services.
The second major shift in world trade relates to the technological content of the
traded items, be they manufactured goods, or services; the share of resource based and low technology goods is decreasing, that of medium technology such as automobiles is nearly constant, while that with high technology content is increasing,Thirdly, the sheer scale and volume of manufacturing being undertaken in China has produced a completely new paradigm in large scale manufacturing. China is slowly turning into the world’s workshop and factory, with enormous appetite for raw materials and energy resources. While the long term impact of this activity on the very nature of competitiveness will be interesting, its short terms may be devastating to some economies.
Globalisation is throwing up different challenges for different countries and regions.While many countries like Pakistan are welcoming re-location of manufacturing, the older industrial powers are facing the threat of de-industrialisation. This has forced countries,which would normally not be associated with government interventions and policies, to now actively promote new ‘Enterprise’ Plans to protect their manufacturing base.