The theme for the 10th BRICS Summit is: "BRICS in Africa: Collaboration for Inclusive Growth and Shared Prosperity in the 4th Industrial Revolution". The theme is reflective of the core priorities of each one of the BRICS members, notably to strive towards the creation of an inclusive society and global partnerships that will bring prosperity to all humankind, especially in Africa.
Ramaphosa told heads of state and government that quantum leaps in technology and innovation present enormous opportunities for growth, development and human progress.
"This is of particular importance to the southern African manufacturing sector," said Ian Huntly, CEO of Rifle-Shot Performance Holdings, concurring with Ramaphosa's sentiments. Industrialised countries across the world have been realising that a vibrant manufacturing sector is an essential part of their economy, and the value chain creates huge amounts of knock-on wealth for their citizens and is essential to the social fabric of the economy.
Manufacturing, together with mining and agriculture, are the only industries with a 10 times or greater multiplier effect on the economy, according to the Pan African Report.
Adoption of process and technological advances are of paramount importance if we wish to see our economy thriving. The ability to export and grow this sector depends on the adoption of technology to underpin world-class operations. If we do not make the necessary changes, we will be left behind.
The goals of the Integrated Growth and Development Plan include attaining equity and transformation, economic growth and competitiveness, as well as environmental sustainability and good governance. Without technological advances, we are likely to miss the opportunities of leap-frogging the technologies of previous revolutions. "New technologies can ensure more efficient processes and more reliable systems of service delivery," noted Ramaphosa.
A national re-industrialisation programme has been re-enforced to emphasise the importance of the industrial sector in building an inclusive economy. The Pan African Report of November 2011 is a great example of its impact.
Digitisation across the enterprises (large and small) is the first step on the road to fulfilling the competitiveness behind the global market participation, through the Internet of things (IOT) on the journey to Industry 4.0 or smart manufacturing. Smart manufacturing, far from reducing jobs, will form the basis of well-paid work in a highly skilled economy. The human element in this regard is of critical importance. Since taking office in February, Ramaphosa and his administration have dedicated attention to the fourth industrial revolution and what nations like SA need to do to have a workforce ready for a digital future.
Transformation needs to take place. This means transformation to reflect the demographics of the country, and business process transformation to meet modern business practices. Both dimensions need to be tackled together.
Removal of wasteful and unnecessary processes from any business helps a company be more resilient and reduces value-chain costs over time. Questioning "why do we do this?" at every stage is important.
Recapitalisation needs to take place. Many businesses today need to source capital to bring themselves in line with their global peers, or face extinction. Protectionist measures tend to breed uncompetitive practices, so while they might put food on the table today, there are many incentives and investors willing to support a well-qualified action plan, which will breed sustainable solutions.
Buy local and make it easier for local vendors to survive. Often, this can be as simple as paying them on time, ensuring they are on an equal footing, and many will be surprised at how quickly they become competitive. A small specification change could result in a product made locally.
The time has come to start implementing the great policies that have been circulating for roughly 10 years. This implementation is at all levels, small business to mega-companies, civil society to government. Perhaps now is the time for the old byline: "simpler, better, faster" to be the mantra of industry.
Embrace change, up-skill and reap the benefits. Technologies exist that can be quickly and easily implemented to benefit medium-sized manufacturing companies within six months.
Source:
https://www.itweb.co.za/content/o1Jr5MxEL99qKdWL
http://www.ee.co.za/article/a-manufacturing-turnaround-is-critical-for-sa.html
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