Relocating Manufacturing

1. United States is still a manufacturing powerhouse in many sectors, but it surprises many people that a huge number of everyday basic items have to be imported. 

2. The current pandemic-related shortages have fueled calls from political leaders of both parties for U.S. manufacturers to start producing critical supplies domestically. And long before the pandemic, President Trump was pushing U.S. companies to bring back production from overseas.

3. The issue is complex and defies easy solutions. The challenge lies in a combination of how modern supply networks are structured and the operational metrics applied to manufacturers. 

4. Taken together, the United States and other advanced industrial economies have evolved a highly efficient and productive product manufacturing-and-delivery system that provides them with a cornucopia of products at relatively low costs. But inherent in that system are dependencies and expectations that the pandemic has called into question.

Product Spotlight - How Ohm's Law Affects Level Sensors & Pressure Transducers

1. Occasionally, we hear puzzling tales of sensors that just won’t work, even though troubleshooting measures confirm the sensor is operational. If this ever happens to you, it’s worth taking a look at the cable between the sensor and your control system input.

2. There are two forces at play that need to be managed: resistance and noise. The effects of each are critical to receiving your sensor’s signal. One is just a part of the equation, while the other is a persistent threat. Let’s take a look at resistance, and deal with noise as we go along.

Achieving Win-Win Spin-Offs

1. Corporate spin-off can liberate a parent company and a divested business unit from capital and bureaucratic constraints, so they can pursue strategies they couldn’t otherwise. Yet their fates often remain linked. 

2. For a spin-off to truly succeed, both ParentCo and SpinCo (and their investors) should end up in a place better than the one where they started. Indeed,  empirical research suggests that spin-offs outperform by supporting the long-term growth and value-creation opportunities of both entities.

3. Getting to a win–win outcome is often easier said than done, however. Business leaders run into roadblocks when they make critical decisions about the structure of the arrangements between ParentCo and SpinCo and the execution of the spin-off itself—for instance, defining its scope, allocating talent and resources across both entities, and dealing with capital and stranded costs.

4. Four factors critical for achieving win–win spin-offs: a quick transition toward growth, operational excellence, leadership time and attention, and culture and talent.

Servitization of Machine by Manufacturers Generating New Revenue Stream

1. The manufacturing industry has continually embraced concepts that increased its ability to innovate and meet its customers' changing needs or requirements. 

2. Adopting digital transformation- solutions to implement Industrie 4.0 business models is one example of the importance manufacturers place on optimizing traditional processes to improve productivity. 

3. Likewise, servitization of the machine offers manufacturers a pathway to generate a constant revenue stream over decades.

Base Erosion and Profit Shifting (“BEPS”) Impact on Hong Kong SAR & Malaysia

1. On July 1 2021, 130 countries approved a statement providing a framework for reform of the international tax rules. These countries are members of the OECD/G20 Inclusive Framework on BEPS (IF), comprising 139 countries. 

2. The statement sets forth the key terms for an agreement of a two-pillar approach to reforms and calls for a comprehensive agreement by the October 2021 G20 Finance Ministers and Central Bank Governors meeting, with changes coming into effect in 2023.  

3. Pillar one of the agreement is a significant departure from the standard international tax rules of the last 100 years, which largely require a physical presence in a country before that country has a right to tax. 

4. Pillar two secures an unprecedented agreement on a global minimum level of taxation which has the effect of stipulating a floor for tax competition among jurisdictions.

5. The Multilateral Instrument (“MLI”) was signed in June 2017 by more than 70 jurisdictions, and represents one of the most important changes to-date to cross-border tax norms. Malaysia became a signatory to the MLI on 24 January 2018; and ratified the MLI on 4 August 2020 when the Malaysian MLI Order was gazetted. On 18 February 2021, Malaysia deposited the instrument of ratification with the OECD; and the MLI entered into force for Malaysia on 1 June 2021. 

Spin-offs, Start-ups & Cooperation Models in Germany

1. Germany’s start-up scene is in a state of flux: a new generation of business founders is emerging who have many things in common – they pursue research and development as a matter of course, use digital technologies and launch businesses that they want to see expand in the future. These young start-ups develop technologies for medical product innovations, new forms of mobility or applied artificial intelligence.

2. One such young and innovative company is the multi-award-winning start-up ArtiMinds Robotics. ArtiMinds has developed software that allows industrial robots to be programmed quickly and intuitively: the robot copies human movements and learns how to react flexibly to problems. It can then reliably solve even complex tasks.

3. An idea that is as brilliant as it is convincing, this has been a real success story. A 2013 spin-off from the Karlsruhe Institute of Technology (KIT) has evolved into a technology company employing over 60 people and supplying the world market from its Karlsruhe base.

Shanghai's Initiatives, Incentives and Measures in Lingang Special Area of China (Shanghai) Pilot Free Trade Zone (FTZ)

1. China’s central government has offered tax incentives, greater autonomy in local legislation and more administrative power to liberalise the capital markets in Shanghai, as Beijing envisions building Pudong into a “brilliant pearl” of a strong socialist country.

2. The document is being seen by city officials and the business community as a grand blueprint for Shanghai’s development until 2050.

OECD's Pillar 1 And Pillar 2 Solution to Address the Tax Challenges

1. On October 12, 2020, the Organisation of Economic Co-operation and Development (OECD) released “blueprints” of proposed solutions to address tax challenges arising from the accelerating digitalization and globalization of the world economy.

2. The Pillar 1 and Pillar 2 OECD blueprints focus on nexus and profit allocations, in addition to base erosion and profit shifting (BEPS) challenges.

Philippines launches FIST Act for Banks and Financial Institutions

1. On February 16, 2021, the Philippines government issued the Financial Institutions Strategic Transfer (FIST) Act to facilitate banks and financial institutions (FIs) to dispose of their non-performing assets (NPAs) and non-performing loans (NPLs) through transfers to FIST Corporations (FISTC).

2. The FIST Act is among the government’s priority legislation to strengthen the financial sector and enable banks and financial institutions to extend credit to more sectors and thus stimulating much-needed economic growth. 

3. FISTC are asset management firms similar to special purpose vehicles and have been given the power to collect, dispose of, manage, and operate NPAs acquired from FIs under the FIST Act.

4. Through this measure, the government expects that the recovery of these financial institutions would spill over to other affected sectors of the community and help keep the economy afloat.

Consumer Insights & Trends Affecting Your Business

1. Euromonitor International has identified five key consumer insights from the results of its Voice of the Consumer: Lifestyles Survey. The survey was fielded to over 40,000 respondents in 40 countries worldwide in early 2021.

2.Consumers are demanding that companies care beyond revenue; they no longer perceive businesses as profit-driven entities. Protecting the health and interest of society and the planet is the new expectation, in order to Build Back Better. Companies should help reshape the world in a more sustainable way, leading a shift from a volume- to a value-driven economy and turning the tide on social inequity and environmental damage.

3. Global consumers are more focused on value, emotional wellbeing and hybrid lifestyles across the physical and digital worlds. Companies that can respond and align to these needs will be better placed to succeed and grow. With lessons learnt from the pandemic and the global recession, it is vital to prevent future shocks and disruption to your business.

Impact from Indonesia's ban on Nickel Ore Export

1. Nickel prices skyrocketed on the expectations of a shortage on the global market provoked by the increase in demand that outpaces the supply growth. The rebound in the steel industry and rising electric vehicle manufacturing drive nickel consumption. 

2. Indonesia, the largest nickel ore producer worldwide, banned exports of the ore and thus achieved a record output of refined nickel. 

3. Indonesia, the leading global producer of nickel ore, reduced its volume of mine production from 853К to 760К tonnes, banned the export of unprocessed nickel ore and increased the refined nickel production to 636K tonnes. 

4. According to World Bank, the average nickel price in the first half of 2021 reached $17,489 per tonne, which was 27% higher than the 2020’s average price of $13,787 per tonne.

5. Rising demand from the recovering steel industry and from emerging electric car manufacturing provokes the price rally, while the supply is expected to be insufficient in the immediate term due to a decrease in the mined output.

Equitable Transit-Oriented Development (ETOD) Pilot Program & Public-Private Partnership Housing Development

1. A new Equitable Transit-Oriented Development (ETOD) Pilot Program to support community-driven projects that promote healthy, affordable, and accessible development near transit. The pilot program supports the implementation of the City of Chicago’s recently adopted ETOD Policy Plan.  

2. Three-part ETOD plan was developed over the last two years to foster more equitable transit-oriented development citywide. The plan’s goals include driving investment in transit-oriented projects on the South, West, and Southwest sides while also preventing displacement and promoting affordability in the North and Northwest sides of the city.  

REITs in China & Philippines

1. Singapore is currently leading the trading of REITs in Southeast Asia,as the country has established itself as a hub for these companies for two decades with over 42 listed REITs.

2. Although the Singaporean REITs market suffered an initial blow because of the effects of the Covid-19 outbreak, it has recently reopened to resume global expansion. 

3. Another Southeast Asian country with an established REIT market is Indonesia, which currently has three listed REITs. Its REIT industry is obviously still very young compared to Singapore’s, as Indonesian legislators have yet to attract more entities by offering attractive investments.

4. Although the Singaporean REITs market suffered an initial blow because of the effects of the Covid-19 outbreak, it has recently reopened to resume global expansion. Another Southeast Asian country with an established REIT market is Indonesia, which currently has three listed REITs. Its REIT industry is obviously still very young compared to Singapore’s, as Indonesian legislators have yet to attract more entities by offering attractive investments.

Hard costs v soft costs, Front-loaded costs in Project Management

1. The term ‘front-loaded’ refers to costs that are applied disproportionately to elements of the work that take place early on during a project or part of a project.

2. There are a wide variety of different construction costs that must be built into a project’s budget. Many of these can be divided into two categories; hard costs and soft costs.

Asian Nations & China Plus One’ Strategy

1. In Q2 2021, the China-U.S. trade war and the COVID-19 pandemic laid bare the need for companies to diversify supply chains outside of China.

2. This has given rise to the “China plus one” strategy, in which multinational firms are moving to other countries, in addition to China. Some Asian countries have put forward plans to attract overseas investment as companies look for another center of production or distribution. 

3. These include Thailand, Malaysia, and Vietnam, which have introduced preferential policies for overseas firms investing in the country.

Electric Vehicle & Charging Station Market Analysis and Forecast

1. The Global Electric Vehicle Market size is projected to grow from 4,093 thousand units in 2021 to 34,756 thousand units by 2030, at a CAGR of 26.8%.

2. Factors such as growing demand for low emission commuting and governments supporting long range, zero emission vehicles through subsidies & tax rebates have compelled the manufacturers to provide electric vehicles around the world.

3. This has led to a growing demand for electric vehicles in the market. Countries around the world have set up targets for emission reductions according to their own capacity.

4. This has led to a growing demand for electric vehicles in the market. Countries around the world have set up targets for emission reductions according to their own capacity.

5. The market in Asia Pacific is projected to experience steady growth owing to the high demand for lower cost-efficient and low-emission vehicles, while the North American and European market is fast-growing markets due to the government initiatives and growing high-performance Passenger vehicle segment. 

6. However, the low presence of EV charging stations and hydrogen fuel stations, higher costs involved in initial investments, and performance constraints could hamper the growth of the global electric vehicle market.

IOT Security Issues & Software Implementation

1. IoT (Internet of Things) is a relatively new concept for companies of all industries. IoT software integrates with critical business systems (e.g., ordering systems, robotics, scheduling, and more) to enhance the execution of related tasks.

2. The main idea is to reduce operational costs while collecting and analyzing data so that processes can be optimized and goals can be achieved. All too often, what starts out as a simple task evolves into a number of challenges that must be overcome to reach the desired result.

3. About 60% of enterprises are already implementing IoT, but only 30% are ready to say they’ve done so successfully. Most business executives are not yet able to appreciate the value of implementing IoT software because its benefits don’t begin to bear fruit for some time after implementation. 

4. By focusing on reducing operating costs, companies often miss out on IoT’s ability to solve consumer problems. And while IoT software impacts efficiency, customer satisfaction and productivity in the long run, the gap between understanding why to use IoT and the real value of putting its innovation into practice is a common reason for enterprises being slow-adopters.

WEF's Global Lighthouse Network & Insights from Companies

1. The global manufacturing community is lagging behind in its adoption of Fourth Industrial Revolution technologies. 

2. More than 70% of companies are still stuck in “pilot purgatory”, while only a select group of leading manufacturers are able to deploy advanced manufacturing at scale, generating new value and customer experiences within the factory or across value chains. 

3. To close this gap and accelerate a more comprehensive and inclusive adoption of advanced technologies in manufacturing, the World Economic Forum’s Shaping the Future of Advanced Manufacturing and Production platform has set up the Global Lighthouse Network. 

4. This community of manufacturers shows leadership in using Fourth Industrial Revolution technologies to transform factories, value chains and business models, for compelling financial and operational returns. 

5. To date, 90 manufacturing Lighthouses have been identified from different industry sectors, including 3 Sustainability Lighthouses. 

6. They have embarked on a joint learning journey, partnering on collaborative projects, developing insights and incubating new potential partnerships.

7. The Weichai Power Company, a powertrain, vehicle and construction machinery producer in China, is an E2E Lighthouse that has achieved technology-enabled connectivity across multiple functions. 

Knowledge Management for Manufacturers

1. Many operations already have systems in place to manage their tangible knowledge; that’s reports, presentations, papers etc. However, they often overlook the knowledge and experience of their people. 

2. A highly skilled and knowledgeable workforce is often a company’s most valuable and unique asset, so shouldn’t something be done something to safeguard this knowledge as well?

3. But effective knowledge management is often easier said than done – and this fact has been detrimental to the progress of many organizations. This is especially true for those in manufacturing industries, including general manufacturing, information technology, telecoms, chemicals and consumer goods. 

4. In such companies, an aging workforce and largely manual processes have inhibited the effective transfer of knowledge and caused a massive skills gap to emerge. And this has hobbled one of the greatest economic drivers in the U.S.

5. Here’s how to implement knowledge management in industries across the board to close the skills gap, save money and bring your organization into the future.

Funds to Support Planning Efforts and a more Equitable, Just, & Inclusive Transportation System

 1. In the United States, The Federal Transit Administration (FTA)  announced the availability of approximately $10 million in competitive grant funds through FTA's Pilot Program for Transit-Oriented Development (TOD) Planning.

2. FTA says the funds will support comprehensive planning efforts that help connect communities, improve access to public transportation and affordable housing, combat climate change, advance environmental justice, and promote equitable delivery of benefits to underserved communities.