Every year the Rubber Industry associations draw annual reports of their industry findings which include perceptions of the manufacturing executives and make necessary plans and strategies for the upcoming years. The following article emphasis on the 2016 report which was drawn from 96 industries. According to the latest reports of ARPM, the following were stated to be some of the trends in the manufacturing industry.
- The automotive market is the commanding power of all industries- In the surveys and researches that were conducted recently, it was found that the most wanted and optimistic industry is the automotive industry. The automotive industry had its sales growing gradually till the seventh year. Morgan Stanley anticipated that the sales growth will continue and it will rise to 2 to 4 percent in 2017. Construction industry and defence industry were also fast securing their positions in the market.
- Material Science having a huge impact- One-third of the manufactures conceived that material science and development (also considered as physics and chemistry, engineering applications and industrial manufacturing procedures) will have a great impact in the field of rubber industry in 2017. Robin Elerick of Smithers Rapra holds a view that rubber industries are using scientifically consistent methods and procedures. The additions and substitutes that were used are easily found. The automotive industries face a lot of difficulties with its rubber manufacturers. In the coming years the automotive manufacturers are subjected to face a rise in the cost of the elastomers. They must also make necessary changes so that the equipments of their industries bear up with the higher underlying temperatures.
- Sales having positive figures- While some researches did forecast a view that the growth of sales will be declining, it was actually proven to have a sharp growth in the last 12 months. Similarly it will continue to grow in the coming years. Fifty eight percent of the companies felt an increase in their sales only. The main reason for the increase in sales is the constant relationship with the customers and the new techniques that were implemented. Executives are now expecting a steady growth in the sales for the next 12 months.
- Strain because of customer demands- In the last seven years, majority of the rubber manufacturers held a view that the customers demand more and that the demands are sometimes unreasonable. Seventy six percent of the manufacturers feel that it is highly difficult to figure out the reasons on why the demands turns unreasonable. Also customers want their documents in compliance with the government regulations. Of all industry systems, aerospace energy (85 percent) and electronics (100 percent) are facing maximum pressure.
- Decline in offshore businesses- Rise of the reshoring businesses, pushed away the offshore suppliers from the market. Some of the reasons for the decline in offshore businesses are sea/freight costs, customer’s fear of tariff and low cost of foreign production. An equal percentage of declines were found in the offshore business. Many offshore manufacturers who were famous during the previous years are now pushed away from the market.