| Beyond the immediate economic environment, | | | | or Asia Pacific, it may not be the case. Having |
| many industrial and manufacturing companies are | | | | said this, there is still a lot of scope for having an |
| wrestling with questions about how and where | | | | R&D or innovation centre located where the |
| they should leverage attractive workforce | | | | sharpest and brightest people are located, which in |
| dynamics and manufacturing advantages. Should | | | | many hi-tech sectors is still the West. |
| they deploy more resources to the emerging | | | | Despite the growth of markets and operating |
| markets of Asia? And if so, what are the | | | | environments in Asia, many industrial and |
| tradeoffs, and is it important for big industrial and | | | | manufacturing companies have found that a |
| manufacturing companies to retain a base of | | | | strong European footprint is essential. Most big |
| operations and talent in the West even if they | | | | companies already have this presence, in most |
| are investing more in the East? | | | | cases with local leadership sourced through |
| Western companies used to have the know-how | | | | executive search and, depending of the size of |
| and would use emerging countries as | | | | the company, with some expatriate talent from |
| 'manufacturing sites,' which is less and less true. | | | | the United States, who can thus develop the |
| Western companies that want to tap the "huge | | | | international experience and competencies which |
| market potential" of foreign geographies, would be | | | | will be required later by those among them who |
| wise to keep their know-how and their added | | | | will become global leaders of their companies. |
| value close to their existing headquarters to | | | | A major challenge for industrial and manufacturing |
| protect their intellectual property. | | | | companies is to strike a balance between |
| There is also a huge legal territory they should | | | | developing new business in mature markets |
| control when transferring plants and technology to | | | | versus emerging markets in the developing world. |
| the emerging markets of the East. Quality and | | | | Companies will go where there is a need for their |
| R&D should be maintained at Western level, | | | | products. It's about supply and demand. If they |
| despite all the other attractions of those | | | | don't adopt and embrace the ever changing |
| fast-growth markets overseas. | | | | environment they will not be very competitive. |
| The realities of today's commodity-driven industrial | | | | They must not miss the emerging markets, |
| and manufacturing markets make emerging Asian | | | | especially when volume counts. It provides the |
| markets a growing consideration for companies | | | | platform and customer base for developing the |
| that want to compete on cost. That is, of course, | | | | market further globally in a profitable way |
| unless quality is a concern. If you are competing | | | | afterwards. Developing new business in mature |
| on manufactured costs then it only makes sense | | | | markets provides not only business but also the |
| to locate your manufacturing operations in the | | | | reputation of being an innovator and leader, thus |
| most cost effective locations. These locations | | | | creating the right reputation for growth in the |
| tend to be in the Far East. The only time you | | | | emerging markets, where state-of-the-art or |
| would want to locate your manufacturing | | | | even avant-garde solutions are requested. |
| operation in Europe or the United States is when | | | | As the rules of doing business within a fiercely |
| the shipping/transport costs to ship the goods to | | | | competitive industrial and manufacturing |
| the customer are too high or the desired | | | | environment continue to evolve, so too, do the |
| perceived quality can not be achieved remotely. | | | | requirements for world-class management |
| In some sectors where the scales of operations | | | | leadership within these markets. In fact, the |
| are much larger in the West, it makes sense for | | | | demands of corporate leadership have never |
| the companies to have a base there but in other | | | | been higher in the industrial and manufacturing |
| sectors where the scales are much larger in India | | | | markets. |