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Price volatility named biggest manufacturing threat

Published by Steve Coleman on March 13, 2012

Senior manufacturing executives say price fluctuations are the biggest headache industry will face in the coming year.

A KPMG survey of 220 executives for a look at the state of global manufacturing over the next couple of years listed volatility as their largest concern.

A few years ago, one respondent said a $10 shift in copper prices was an earth-shaking occurrence. Now, the price can fluctuate as much as $250 a day.

While developing countries have been pushing into China to help their bottom lines, the US was second only to China when it came to tapping into new supply lines. Over the next couple of years, most companies surveyed say they also plan to put more emphasis on new products they've been developing.

The drive to bring those new products to market may also lead to more standardization across the board. They also say they plan to make their supply chains more transparent after last year's Japanese earthquake and tsunami.

For a look at the full Global Manufacturing Outlook: Growth while Managing Volatility report, click the following link.

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