Keeping SMBs Ahead of the Manufacturing Innovation Curve in SouthEast Asia
By Rajiv Ghatikar, Vice President and General Manager, Siemens PLM Software, ASEAN / Australasia The Southeast Asia region as a whole has achieved unprecedented growth and development in recent decades and is increasingly playing the role of a global growth pole, fast emerging as a manufacturing and information technology hub of the world economy. According to a recent report from the Association of Southeast Asian Nations (ASEAN), more than 96% of all enterprises across the region are considered SMBs, and those organizations account for between 50% and 85% of all domestic employment. Specifically, the SMB sector is an important pillar of Singapore’s economy as they contribute more than 50% of the economic output and 70% of employment. Needless to say, it is clear that small and mid-sized businesses play a unique and integral role across the region, serving as suppliers to large firms, customers of large firms and their own customers. Yet scale and making significant economic contributions have not protected SMBs from the pressures of the global economic slump, rising costs, competition from neighbouring countries and a shortage of skilled workers. GDP growth in the Southeast Asia manufacturing industry is predicted to accelerate modestly from 6.3% in 2013 to 6.5% in 2014 – slower in both years than the 6.9% growth in 2012, meaning manufacturing growth is dependent on the future of its smallest but most significant contributors. Against this backdrop, innovative SMBs are looking for the next generation of tools and strategies to stay ahead of the competition. As stated in a recent SBF DP SME Index, a joint initiative of the Singapore Business Federation and DP Information Group, manufacturers are tackling the challenges first hand by embracing a new wave of technologies and innovations. Product lifecycle management (PLM) software, which includes computer-aided design (CAD) and simulation technologies, […]