MUSCAT -- The 4th edition of Smart Manufacturing Conference was held here yesterday under the auspices of Maqbool bin Ali Sultan, Minister of Commerce and Industry. New research shows that confidence levels in the manufacturing sector jumped in the third quarter and many local businesses are looking to invest in research and development.
"Manufacturing in many parts of the globe is picking up steam," said Dr Abdullah al Zakwani (pictured), Director, Industrial Innovation Centre (IIC) and keynote speaker at Smart Manufacturing the annual conference of the Public Establishment for Industrial Estates (PEIE). Supported by Reem Batteries, Oman Cables, Al Mudhish, and Origin Oman, around 150 leading local manufacturing practitioners gathered to listen to a series of keynotes and interactive panel discussions that reviewed current and future manufacturing trends and the impact of the global recession on industry.
Dr Al Zakwani said according to recent figures, China's Purchasing Managers Index (PMI), a gauge of the country's manufacturing activities, rose at the fastest pace in 18 months in October when it expanded to 55.2, up from 54.3 in September. "This is the sixth consecutive month that China's PMI has increased, indicating economic recovery is steadily becoming more solid," said the IIC Director, adding: "It's certainly domestic demand that's stimulating Chinese manufacturing, but I strongly suspect we'll see new export orders rise over the coming months. Indeed, the data we're seeing coming out of China, the US, Japan and Europe is all consistent with a gradual to moderate economic recovery. This has to bode well for Oman's manufacturing sector."
Germany, France and Japan have all returned to growth while Japan's manufacturing production also increased for a seventh consecutive month in September, extending the longest stretch of gains in 12 years. Moreover, a recent survey, which looked at confidence levels in the manufacturing sector over the next six months, showed 49.5 per cent of respondents were positive about the outlook for their business over the next half-year.
According to the research, almost a third of companies -- 29 per cent -- plan to increase R&D investment. "This renewed focus on R&D is critical to manufacturing and the sector's future growth," said Dr Al Zakwani. He stressed the importance of stimulating innovation in industrial organisations and developing and deepening the interface between industry and education centres. He also highlighted the critical role small and medium enterprises (SMEs) play in the industrial sector and the need to create a culture of research among SMEs.
At least 30 per cent of the SMEs must have research and development as an integral part of their functioning for driving economic development through the industry, he stressed. Ibtisam al Faruji, PEIE's Marketing Director and organiser of Smart Manufacturing, said: "Although conditions for local manufacturers remain challenging, confidence levels have seen a significant increase over the past few months. The data we're seeing coming out of Asia and North America is very encouraging for local industry."
She said: "Recovery will probably be a slow process but the sector is looking a lot healthier than most had expected. Given the push in areas like innovation, research, design, technology and training hopes are high that Oman's manufacturing has turned a corner. This was evident from today's discussions and feedback from the audience." Launched in 2006, PEIE's annual Smart Manufacturing Conference is designed specifically to encourage and assist manufacturers in reaching their full potential.
By Hasan Kamoonpuri
© Oman Daily Observer 2009
