top risks in manufacturing industry 2020

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. There is a massive technological breakthrough in the composition of plastic or other advanced materials — how does that affect demand for metals? How are you going to build, recruit or borrow the right skills and capabilities across the organization? ©2020 Protiviti Inc. All Rights Reserved. This is largely due to contributing factors such as Information Technology (IT)/Operational Technology (OT) convergence, Internet of Things (IOT) sensors, data analytics and optimization AI. Quality Insider . Digital remains in the top three. The New Year is here and so it’s the time to explore what the top operational risks for the next 12 months will be. EY | Assurance | Consulting | Strategy and Transactions | Tax. There is certainly clear recognition that significant productivity gains can be made possible by rethinking how work is being done, and by being prepared to innovate. It enables decision automation to minimize loss across the entire value chain. S&P Global Ratings; European Corporate Credit Outlook Mid-Year 2020. We’ve looked at the top 5 risks facing manufacturers today, so you understand the importance of conducting c… How do you create a compelling employee value proposition? The trends we see on the horizon for Industry 4.0 in 2020 … Innovation could bring a much-needed step change to the mining sector. Lower exploration budgets, fewer major discoveries and declining grades in existing deposits are particularly concerning when you consider that the outlook is for growing mineral demand as a result of the global growth and the demands of new world infrastructure. The “new normal” has become a cliché for the world we are feeling our way towards. Ninety-four percent of manufacturers cite competition and consolidation as a risk this year, and as seen by the recent Hillshire Farms and Pinnacle deal in the food processing industry, many are turning to acquisitions to gain an edge. Data Will Need More Proof of Integrity. The 2016 BDO Manufacturing RiskFactor Report examines the risk factors in the most recent 10-K filings of the largest 100 publicly traded U.S. manufacturers across five sectors including fabricated metal, food processing, machinery, plastics and rubber, and transportation equipment.. 5G. Digital effectiveness remains in the top three risks and opportunities … The factors were analyzed and ranked by order of frequency cited. Sector. There are four new risks on the radar this year: reducing carbon footprint, high-impact risks, replacement of production and innovation. How will you retain senior employees to minimize the negative impact of attrition? Some industries, like financial services and healthcare, have been targets of cyberattacks since day one. Tariff Wars. Delays, breaches, and quality issues are all prevalent in the manufacturing industry today. Digital and technological innovation has the potential to improve productivity, safety and environmental management in the mining industry. Eurasia Group's Top risks For 2020 The time has come to update our Top Risks 2020, taking into account how the coronavirus has accelerated the trends that worry us most. The burning platform for innovation is clear — some mining companies may need to innovate to survive, while others may be looking at embracing innovation to thrive in today’s fast-changing environment, and to improve return on capital. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Exploration spend has declined significantly and even though there has been some recovery in the last two years, budgets are still half of what they were in 2012.2. Ethiopia's war risks leaving manufacturing dreams in tatters Robi holds IPO lottery draw, 465,290 emerge as winners How oil majors shift billions in profits to island tax havens Companies need to assess portfolios in terms of what would happen if something radical happens. Each of the Companies are grappling with understanding what the workforce might look like in the future, and where they can attain these skills — build or buy? Mining companies will also need to re-evaluate their appetite for risk to ensure they are not missing out on new opportunities by taking a complacent or conservative approach to allocating capital. Energy becomes free, then what happens to copper? 3 Theft and fraud. Mar 12, 2020. Experienced mining and metals leader. Still, the second annual BDO USA LLP analysis of risk … In addition, the sector is facing greater scrutiny from end consumers, demanding a transparent ethical supply chain as well as a lower carbon footprint. It’s more an opportunity than a risk now, and the one issue miners are challenged with is how to better manage data to extract value from it. The report "Aviation Risk 2020: Safety And The State Of The Nation" focuses on safety developments in commercial aviation around the world.It identifies a number of insurance claims trends which are impacting the industry – including the top causes of financial losses – and highlights a number of risk trends and challenges that will impact the aviation sector and insurance landscape in future. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. The Printing industry is in the midst of a decline as digital products and services continue to displace printed materials. Published: Tuesday, June 10, 2014 - 15:30. For years, manufacturing seemed far less interesting to … This is despite continuing developments in global trade, tariffs, and an ongoing war between China and the United States. Will your digital investment strategy go from virtual to reality? The 15th edition of the World Economic Forum’s Global Risks Report is published as critical risks are manifesting. 1 slot, with 44% of our business risks survey respondents1 putting it at the top of the list. Interestingly, one of the top risk issues in 2019, evolving changes in global trade policies, did not crack the top five for 2020 (although it is in the top 10 list of risks for this industry group). In 2020, US political institutions will be tested as never before, and … Leading mining companies are recognizing the importance of reducing their carbon emissions. In addition to reviewing forward-looking manufacturing studies and industry visions (e.g., NGM, 1997; … © 2020 EYGM Limited. This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. As digital becomes business as usual, the threat surface that can be attacked is increasing exponentially. Industrial Cybersecurity / Manufacturing News Top cybersecurity risks manufacturers face today. We forecast 1.35 million b/d, more than double the 0.6 million b/d of 2019 (the lowest since 2011). You may withdraw your consent to cookies at any time once you have entered the website through a link in the privacy policy, which you can find at the bottom of each page on the website. Source: EY survey over 130+ execs from the EY Global Mining & Metals sector. It’s worth noting that there are always opportunities in time of change. Research. S&P Global Ratings; Latin America Corporate and Infrastructure Credit MidYear Outlook 2020 . : Who Governs the US? Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Most airlines have a global footprint and … Theft and fraud jumps to third in this year’s survey – a sign of both its ubiquity for … How will you equip future leaders with the skills needed to manage teams in a digital age? For example, what if: The long-term goal is to increase the return on capital, while reducing the volatility of those returns. The rise of the Internet of Things (IoT) in industrial applications has given … 1. Unlock Top 25. Printing in the US. The fluctuations in the risks, as well as new risks highlight the ongoing disruption in the sector. 1. Comment; Rss; Send Article (Must Login) Print; Author Archive; T he manufacturing industry is poised for growth in 2014. We have evaluated the most important strategic challenges for leading players in the industry and rated the severity of these risks for the sector, through analyzing the annual reports for the top 15 global A&D players in terms of revenues. Strong governance program and a culture of accountability, Ramp up innovation to both find new resources and extract more value from current resources, Increased mining in remote and difficult locations, Access and cost of energy and infrastructure, Focus on sustainable cost reduction programs, Encourage innovation and partnerships to help with longer-term reduction of costs, Review capital tied up in high levels of pre-stripping, advance development and stockpiles, Consider the use of contract mining vs. sale or leaseback, Create strategic joint ventures to optimize economies of scale, Reduce costs from a support function — automation in the back office. When risks aren’t managed correctly, we often see the negative results plastered on the news and across social media. For more information about our organization, please visit ey.com. One of the most fascinating things about digital transformation is that it moves instantly—and slowly—all at the same time. 2020 is the year we are likely to see the much talked about 5G to be rolled out on a much larger … Please refer to your advisors for specific advice. What elevated levels of political risk mean for business in 2021. Given the competitive market for digital and data-related skills, they might be hard to get into the mining sector, given the tarnished brand we have vs. other sectors. With an increase in cybersecurity threats, there has also been an increase in … Corporate Exploration Strategies: Overview of exploration trends, S&P Market Intelligence. All Rights Reserved. Top 5 Market Challenges by Annual Revenues (Common concerns for manufacturers of every size are highlighted.) BDO USA. The clean energy transition is going to be mineral intensive, providing an enormous opportunity for mining companies. In addition to cookies that are strictly necessary to operate this website, we use the following types of cookies to improve your experience and our services: Functional cookies to enhance your experience (e.g. A perceived Every cybersecurity transformation should promote three key principles across culture, governance and capabilities: Exploration technologies have already made significant advances as miners explore new digital technologies. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. By Ellen Neveux for Security Boulevard. Deadline: Dec. 31, 2020. Most mining companies can clearly state their critical risks and manage the visible, high-frequency risks in their business. Volatility in the geopolitical and economic environment. The themes of license to operate and disruption run through this year’s risks, as social responsibility and broader stakeholder demands intensify alongside the need for digital transformation, greater risk taking and innovation. Show article references#Hide article references, Top 10 business risks and opportunities – 2020 (pdf), Top 10 business risks and opportunities – 2020 – Japanese (pdf), Top 10 business risks and opportunities – 2020 – Spanish (pdf). Top Risks for the Manufacturing Industry Supply chain and labor concerns are keeping CEOs awake at night. 2020 Industry News / Top cybersecurity risks manufacturers face today . The extended period of elections and resultant government changes has brought uncertainty to the political environment which has created volatility in the commodity markets. Innovation could bring a much-needed step change to address key structural issues in the mining sector, namely: Cost reduction needs to be sustainable and a keen focus on productivity will help to manage the impact of rising costs. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. Bio. One thing is for certain – financial services firms can expect the pace of change to accelerate across the board – regulatory, business, operational, etc. Download Coronavirus Edition. License to operate and disruption run through this year’s risks, as social responsibility and broader stakeholder demands intensify. Manufacturers with a heavy reliance on foreign steel and aluminum will face significant … However, in our experience, these critical risks are often static and stay on the risk register in much the same “format” for many years. Volatility in geopolitical and economic environment. Digital effectiveness remains in the top three risks and opportunities for miners and continues to be a topic executives want to discuss. Should you be looking at benchmarking to work toward best practices as an industry? License to operate remains in the No. In 2020, we expect a bounce in oil demand growth despite tepid GDP growth of 2.4%. Infiniti’s risk management solutions help food processing industry leaders identify, evaluate, mitigate, and review the significant risks in the market. While application of technology has become business as usual, is anyone really doing it well? More News. Miners need to think more broadly about how to maximize their returns and adopt new approaches that may be radically different from those of the past. Automation and increased maturity in the use of data is proving to have significant benefits to large mining operations, in terms of providing an uplift in productivity and hence reduction in production costs per tonne. While the FDA is in favor of innovation and advancing public … There are significant opportunities for lithium, cobalt, copper, aluminum, nickel and many other minerals. Contributing insightful points of view to the market around productivity and digital. EY is a global leader in assurance, consulting, strategy and transactions, and tax services. Review our cookie policy for more information. For 2020 and beyond, activism and civil unrest have a new driver: the pandemic. Riskiest Industries in the US in 2020. Cybersecurity Hybrids. The transition to a low-carbon economy is well underway and the pressure to accelerate this transition seems to grow every day. Protiviti Inc. is an Equal Opportunity Employer, M/F/Disability/Veterans, Executive Perspectives on Top Risks for 2020 in the Manufacturing and Distribution Industry, Financial Reporting Remediation & Compliance, Governance, Risk & Compliance (GRC) Solutions, Performance Improvement & Managed Services, CFO EXCHANGE EXECUTIVE SUMMARY (DECEMBER 4), Understanding the Relationship Between Business Continuity Management and Operational Resilience, Industry Insights - Consumer Products and Retail, Assessment Questions for Audit Committees to Consider. Infographic: Executive Perspectives on Top Risks for 2020 in the Manufacturing and Distribution Industry According to the results of our 2020 Executive Perspectives on Top Risks Survey, for organizations in the manufacturing and distribution industry, concerns and/or uncertainty regarding economic conditions represent the top risk issue by a substantial margin.Risk scores for the issue have climbed over the past three years but jumped notably for 2020. This year's report was originally published on 6 January 2020 and updated on 19 March 2020. Future of Manufacturing: 2020 and Beyond, May 2016, top market challenges and opportunities impacting company performance over the next five years rated 1 (high impact) or 2 on a five-point scale, n=149. Wearable Technology. What creative strategies can you employ to ready your workforce for the future? The Committee on Visionary Manufacturing Challenges was established by the National Research Council's Board on Manufacturing and Engineering Design to identify the major challenges that will face manufacturing enterprises in 2020 and the enabling technologies to address these challenges. Once you know what to look for, you can actively prevent risk and prepare for worst-case scenarios. Shareholder activists are also driving many miners, particularly those with coal assets, to reshape their portfolios by either reconfiguring existing operations or executing divestments. Are you running an analogue supply chain for a digital economy? The radar below plots the top 10 risks for A&D players. Growth in the manufacturing industry is also leading to fierce competition for resources, workers and speed to market. This quarter we explore the likely shape of each industry’s recovery in a post COVID-19 environment, and key risks around our forecasts. 2020 Overall Risk Score: 6.78. remember settings), Performance cookies to measure the website's performance and improve your experience, Advertising/Targeting cookies, which are set by third parties with whom we execute advertising campaigns and allow us to provide you with advertisements relevant to you,  Social media cookies, which allow you to share the content on this website on social media like Facebook and Twitter. Rigged! The key to preventing these issues in your organization is being aware of your areas of vulnerability. S&P Global Ratings; U.S. Corporate Credit Outlook Midyear 2020 . / top cybersecurity risks manufacturers face today concerns for manufacturers of every size highlighted. A bounce in oil demand growth despite tepid GDP growth of 2.4 % displace printed.... 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