30 Jul Industry and Cloud Computing in the Global Economy
The global economy is seeing a shift from consumer-based activity largely in emerging economies to an economy that is being propped up by the developed world’s industrial sectors, according to a recent report released by Moody’s Investor Services.
“With momentum now shifting to core industrial sectors, increasing jobs growth may increase discretionary consumer income, reigniting some of the now-flagging consumer-oriented sectors,” said Mark Gray, head of Moody’s global corporate finance ratings group.
Transportation, aerospace, automobiles and manufacturing industries will see positive EBITDA (earnings before interest, taxes, depreciation, and amortization) growth in 2014 while service industries will be slower, according to Moody’s.
The U.S. market has certainly seen a shift toward manufacturing in recent years as energy prices have decreased and the price of overseas labor has increased in places like China, Russia and Brazil according to report released by BCG earlier this year.
“While labor and energy costs aren’t the only factors that influence corporate decisions on where to locate manufacturing, these striking changes represent a significant shift in the economics of global manufacturing,” said Michael Zinser, BCG partner and co-leader of BCG’s Manufacturing practice.
Recent advancements in technology with the arrival of cloud computing, big data and the internet of things, have led to more efficient and lower cost operations for manufacturers which is enabling growth of the U.S. industrial sector.
With cloud based ERP like Microsoft Dynamics AX having become accessible in recent years, even mid-size organization can get enterprise-level business software with analytics that drive intelligent decision making and improve efficiency with key performance indicators, role based business intelligence and intelligent reporting.