5 Trends Defining The Future of Manufacturing

5 Trends Defining
the Future of Manufacturing

Justinas Liuima, Senior Consultant
Giedrius Stalenis, Economist
ABOUT EUROMONITOR INTERNATIONAL 2
Euromonitor International
network and coverage
© Euromonitor International
3
OVERVIEW
OVERVIEW OF ECONOMIC TRENDS
MANUFACTURING SECTOR TODAY
5 KEY TRENDS SHAPING THE FUTURE
4
Overview of Economic Trends
OVERVIEW OF ECONOMIC TRENDS 5
The global economy and COVID-19: The great lockdown
Real GDP Growth Forecasts: 2020

Consensus Forecasts of Global GDP Growth
4.0 China 5.8
3.0 1.7
2.0 Emerging Economies 4.3
-3.6
1.0
India -10.5 9.0
% growth
0.0
-1.0 World 3.0
-4.8
-2.0
-3.0 USA 1.7
-5.0
-4.0 1.4
Advanced Economies -6.3
-5.0
-6.0 Eurozone -8.8 1.1
Nov
Apr
Aug
Sep
Oct
Feb
Sep
Jan
Dec
Mar
May
Jul
Jun
-15.0 -10.0 -5.0 0.0 5.0 10.0 15.0

Year t-1 Year t
%
2009 2020
2020 (January Forecast) 2020 (September Forecast)
Source: Consensus Economics, World Bank Source: National Statistics, Euromonitor International Macro model
Public debt will be key concern for major economies

Global Public Debt as % of GDP 2008-2010 and Public Debt as a % of GDP 1929-2020
160
120
2019-2021
140
100
120
80 100
60 80
% of GDP
% of GDP
60
40
40
20
20
0
2008 2009 2010 2019 2020 2021 0
Global Financial Crisis COVID-19 Pandemic

United States G-20 Advanced G-20 Emerging
Source: Euromonitor International, International Monetary Fund WEO Source: Euromonitor International from International Monetary Fund (IMF)
Q2 GDP growth at historic lows

Real Q2 GDP Growth y-o-y
5.00
China, 1.87
0.00
Lithuania, -4.20 Norway, -4.72
Real GDP growth, %
-5.00 Israel, -6.71
USA, -9.54
-10.00 Brazil, -11.44
Canada, -14.02
South Africa, -11.62
-15.00 Hungary, -13.60
Malaysia, -17.07
-20.00
Mexico, -18.84
United Kingdom, -22.78

-25.00
Africa and Middle East Asia Pacific Eastern Europe Latin America North America Western Europe
Source: Euromonitor International from IMF/OECD/Eurostat/national statistics
Consumer confidence started recovering but

remains below long-term average
Consumer Confidence: Jan-2019 to Aug-2020

5.0
4.0
St.d. above/below long-term average
3.0
2.0
1.0
0.0
-1.0
-2.0
-3.0
-4.0
-5.0
Jan 2019 Apr 2019 Jul 2019 Oct 2019 Jan 2020 Apr 2020 Jul 2020
China Japan USA Germany United Kingdom
Source: Euromonitor International from IMF/OECD/Eurostat/national statistics

Our view in short Baseline:
Global GDP growth of
Global Real GDP Index, Baseline and Alternative Scenarios: 2019-2025 around -4.6 in 2020 and
125 5.2% in 2021
120
Index, Real GDP 2019=100
115
110 ▪ No additional global waves of
105 the pandemic
100
95 ▪ Social distancing effects
90 subside until the end of 2020
85
80 ▪ Vaccine developed by mid-
2019 2020 2021 2022 2023 2024 2025 2021
Pre-C19 forecast C19 Baseline
Source: Euromonitor International Macro model
▪ Probability – 48%
Asia Pacific will be the least affected region
Real GDP Growth 2020
4.0
Vietnam, 2.5
2.0 Egypt, 1.0
0.0
-2.0 Lithuania, -2.1

Real GDP growth, %
Sweden, -4.5
-4.0 USA, -5.0
Chile, -6.0
-6.0
-8.0 Canada, -6.5
-10.0 South Africa, -8.5 Croatia, -8.7

Thailand, -8.3
-12.0
Argentina, -12.5
-14.0 Spain, -13.3
-16.0
Africa and Middle East Asia Pacific Eastern Europe Latin America North America Western Europe
Asia Pacific will recover fastest
GDP Index under the Baseline Scenario: 2019-2025

130.00
125.00
120.00
Index, 2019=100
115.00
110.00
105.00
100.00
95.00
90.00
85.00
2019 2020 2021 2022 2023 2024 2025
Western Europe Asia Pacific Eastern Europe Latin America Africa and Middle East North America
4 out of 5 fastest recovering countries will

be in Asia Pacific
Top 5 Least Affected Countries under the Top 5 Most Affected Countries under the
Baseline: 2019-2025 Baseline: 2019-2025
140.00 105.00
135.00 103.00
130.00 101.00
99.00
125.00
97.00
120.00
95.00
115.00
93.00
110.00
91.00
105.00 89.00
100.00 87.00
95.00 85.00
2019 2020 2021 2022 2023 2024 2025 2019 2020 2021 2022 2023 2024 2025
Vietnam China Indonesia Pakistan Egypt Italy United Kingdom Mexico Spain Argentina
Source: Euromonitor International Macro model Source: Euromonitor International Macro model
Our view in short C19 Pessimistic1:
Global Real GDP Index, Baseline and Alternative Scenarios: 2019-2025 -5.3% in 2020 and 0.7% in
125 2021
120
115
110 ▪ Global second wave of the
105 pandemic at the end of 2020
100
95 ▪ Social distancing effects until
90 mid-2021
85
80
▪ Vaccine developed by mid-
2019 2020 2021 2022 2023 2024 2025 2021
Pre-C19 forecast C19 Baseline C19 Pessimistic1
Africa and Middle East and Latin America would be most affected
by a global second wave
Baseline and C19 Pessimistic1: 2020 and 2021 growth

6.0
4.1
4.0
2.0
Real GDP growth rate, %
0.0
-0.2
-2.0
-2.1 -1.8
-2.3
-4.0
-3.9
-6.0 -5.2
-6.1
-8.0
-8.1
-10.0 -8.8 -9.2
-12.0
-11.5
-14.0
Baseline Pessimistic1 Baseline Pessimistic1 Baseline Pessimistic1 Baseline Pessimistic1 Baseline Pessimistic1 Baseline Pessimistic1
Africa and Middle East Latin America Eastern Europe Western Europe Asia Pacific North America
Our view in short C19 Pessimistic2:
Global Real GDP Index, Baseline and Alternative Scenarios: 2019-2025 -5.6% in 2020 and
125 -1.9% in 2021
120
115
110 ▪ Multiple waves of the
105 pandemic
100
95 ▪ Social distancing effects until
90 the end of 2021
85
80 ▪ Vaccine delayed until
2019 2020 2021 2022 2023 2024 2025 2022/2023
Pre-C19 forecast C19 Baseline C19 Pessimistic1 C19 Pessimistic2
Asia Pacific will recover fastest
GDP Index under the C19 Pessimistic2 Scenario:

GDP Index under the Baseline Scenario: 2019-2025 2019-2025
130.00
125.00
125.00
120.00
120.00
115.00
115.00
Index, 2019=100
Index, 2019=100
110.00
110.00
105.00
105.00
100.00 100.00
95.00 95.00
90.00 90.00
85.00 85.00
80.00 80.00
2019 2020 2021 2022 2023 2024 2025 2019 2020 2021 2022 2023 2024 2025
Western Europe Asia Pacific Western Europe Asia Pacific

Eastern Europe Latin America Eastern Europe Latin America
Africa and Middle East North America Africa and Middle East North America
17
Manufacturing Sector Today
18
COVID-19 Impact on Industries

COVID-19 has limited Land Transport
Domestic Appliances
effect on consumer Pharmaceuticals
Agriculture & Food
Furniture
goods and logistics Electrical Equipment
Spare Parts, Components
industries Cement & Building Materials
Chemicals
Mining
Beverages
▪ COVID-19 has positive impact on Textiles
Water Transport
Transportation, Food Products, Pharma Refined Petroleum Products
and Furniture industries Entertainment Services
Motor Vehicles
▪ Big-ticket (such as motor vehicles) and Hotels and Restaurants
Jewelry and Luxury Goods
B2B items as well as entertainment Air Transport
services to experience negative impact -5 0 5
from COVID-19 Index
Negative impact Neutral impact Positive impact
© Euromonitor International Source: Euromonitor International

MANUFACTURING SECTOR TODAY 19
Growth forecasts by industry, 2020

World Asia Pacific Australasia Eastern Europe Western Europe North America Latin America Middle East &
Africa
Construction -5.1% -1.7% -9.8% -9.3% -7.9% -4.6% -18.6% -4.7%
Retail & Wholesale -6.2% -2.9% -9.4% -9.2% -7.5% -5.7% -17.7% -4.6%
Business Services -4.2% -0.6% -5.6% -6.7% -5.9% -3.1% -17.6% -6.4%
Transport & Storage -6.7% -3.2% -8.9% -9.6% -8.9% -8.0% -20.2% -4.4%
Financial Services -5.8% -2.7% -8.2% -9.5% -7.2% -5.1% -19.6% -6.1%
Food & Beverages -3.4% 0.0% -7.2% -6.6% -6.6% -2.8% -16.0% -0.6%
Information & -5.4% -2.7% -8.0% -8.0% -7.3% -4.5% -18.9% -5.8%
Communications
Hi-tech Goods -3.5% -1.4% -7.7% -6.2% -8.5% -9.0% -19.5% -3.0%
Metal Products -6.4% -3.5% -3.6% -11.7% -9.3% -12.1% -19.1% -5.5%
Transport Equipment -7.2% -3.2% -8.1% -9.5% -10.3% -8.1% -25.7% -3.8%
Chemical Products -3.8% -0.6% -6.8% -10.3% -8.2% -7.7% -21.0% -3.6%
Hotels & Restaurants -7.3% -4.7% -14.3% -9.7% -9.3% -6.1% -18.6% -3.1%
Machinery -6.2% -3.3% -8.2% -8.5% -8.8% -10.7% -21.1% -6.8%
Pharmaceuticals 0.3% 2.9% -4.0% -4.2% -0.2% -0.1% -11.3% -0.1%
Rubber & Plastic -4.7% -1.9% -7.8% -6.3% -9.6% -6.1% -20.7% -4.1%
© Euromonitor International Source: Euromonitor International

Economies are forecast to start recovering in 2021
Total Production Value, Entire Economy 2015-2023

150
140
130
Index, 2015=100
120
110
100
90
80
70
2015 2016 2017 2018 2019 2020 2021 2022 2023
Asia Pacific Australasia Eastern Europe Latin America

Middle East and Africa North America Western Europe
© Euromonitor International Source: Euromonitor International from national statistics

Manufacturing sector forecast to faster recovery
Manufacturing Sector Services Sector Retail and Wholesale

170 170 170
150 150 150

Index, 2015-100
130 130 130
110 110 110
90 90 90
70 70 70
Asia Pacific
Australasia
Eastern Europe
Latin America
Middle East and Africa
North America
Western Europe

Fewer companies expect negative impact from COVID-19
April 2020 Results June 2020 Results
Australia and Pacific Islands 25% Australia and Pacific Islands 16%
Africa 20% Africa 18%
Middle East 26% Middle East 22%
South America 32% South America 37%
North America 49% North America 45%
Asia 45% Asia 36%
Europe 57% Europe 40%
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
No impact Slight impact Moderate impact No impact Slight impact Moderate impact
Extensive impact Not sure Extensive impact Not sure
Q: Please rate the impact of the COVID-19 pandemic on your current operations in the following regions. N=5707
© Euromonitor International Source: Euromonitor International Voice of the Industry Survey
Long-term changes in industries: adapting to the “new normal”
Production Diversified Supply Automation Digital Strategies Social Distancing

Reshoring Chains Measures
Companies aim to Instead of relying on Investments in Companies reconsider Some of the social
diversify operating the megasuppliers, production digital strategies and distancing measures
risks and relocate companies aim to automation expected sales channels, with will prevail, forcing
part of their create a network of to accelerate greater focus on e- the companies to
production back to smaller suppliers commerce rethink how they
Europe and North operate their
America factories
24
5 Key Trends Shaping The

Future
5 KEY TRENDS SHAPING THE FUTURE 25
Companies rethink their strategies to better

prepare for the future shocks
Measures to Prevent Similar Risks in the Future, July 2020

Expand remote working
Reshape and implement digital strategies
Develop crisis contingency and response procedures/plans
Improve client/customer communications
E-commerce/omni-channel distribution
Invest in employee health and welfare
Conduct global scenario planning to analyse and forecast potential…
Evaluate alternative logistics options and prepare for potential…
Invest in automation and new supply chain technologies (Internet of …
Invest in supply chain resiliency and risk mitigation
Expand supplier and resource pool to give greater flexibility
Invest more in localised production
Reduce supply chain processes and resources to simplify supply…
Other
0% 10% 20% 30% 40% 50% 60% 70% 80%
% of total respondents
Q: What future measures do you expect your business to introduce or adapt to prevent similar risks in the future N=1514
© Euromonitor International Source: Euromonitor International Voice of the Industry Survey
1. Transition towards demand-driven supply chain
Steps to Manage Supply Chain Changes

Measures to Prevent Similar Risks in the Future, June 2020
Develop crisis contingency and response 1. What are potential 2. How much inventory
procedures/plans changes in the supply is available in the
Conduct global scenario planning to chain? warehouses?
analyse and forecast potential market…
Invest in supply chain resiliency and risk
mitigation
0% 20% 40% 60% 3. How will potential 4. How will logistics
N=1514 % of total respondents demand for produced potential change, are
Source: Euromonitor International Voice of the Industry Survey goods change? there any bottlenecks?
5. Optimise production
Greater Demand-driven volumes to potential
Flexibility demand and
transparency supply chain component delivery
changes
Heinz takes the Direct-to-Consumer approach
▪ Food products industry was one of the first

to react to changes and started offering
direct-to-consumer sales model during the
pandemic.
▪ Heinz started to offer Heinz to Home sales
model. The company listed most popular
items online that can be ordered and
delivered to customers home.
▪ The move is anticipated to help improve
brand loyalty and provides future
opportunities to expand sales by offering
custom or limited edition products.
Source: Heinz.co.uk
2. Embracing digital solutions and automation
Global E-commerce Revenue in Selected

Measures to Prevent Similar Risks in the
Industries: 2019-2025
Future, June 2020
Transport Equipment
Food, Beverages and Tobacco
Reshape and implement
Transport and Storage
digital strategies
Construction and Real Estate
Metal Products
E-commerce/omni-channel Machinery
distribution Hi-tech Goods
Chemical Products
Evaluate alternative logistics Forestry, Wood and Paper
options and prepare for Rubber and Plastic
potential channel shifts (in-… Pharmaceuticals and Medical…
Non-metalic Mineral Products
Invest in automation and new Textile and Leather Products
supply chain technologies Household Goods
Agriculture
0% 10% 20% 30% 40% 50% 60% 70% 0 1,000 2,000 3,000
% of total respondents USD billion
2019 2019-2025 Period Growth
N=1514
Source: Euromonitor International Voice of the Industry Survey
Automation tools can help to increase global
▪ New production methods can
manufacturing output by USD1.3 trillion
help to improve production
efficiency by 3-5%
Invest in Automation and New Supply Chain Technologies
by Industry
Consumer electronics and appliances ▪ Better planning of the
Household essentials
Technology production process,
Automotive elimination of the
Packaging
Financial services
bottlenecks and smoother
Retailing product design process help
Food and beverages to achieve the gains
Consumer health
Beauty and personal care
Other
Travel and tourism
▪ Automation would mainly
Leisure and entertainment benefit food and beverages,
0% 10% 20% 30% 40% 50% 60% 70% automotive, machinery, hi-
N=1514
tech goods industries
Using digital tools for crisis response
▪ Garlock is a multinational producer of pipeline

and fluid sealing solutions. With the rapid
changes and social distancing measures caused
by COVID-19, the company needed safe digital
platform to manage crisis response plan
remotely.
▪ With the help of external suppliers, in less than
24 hours Garlock was able to create secure and
password protected pages which all employees
could access.
▪ This helped the company to quickly share time-
sensitive information, critical to crisis response
plans, and to efficiently communicate
Source: Garlock.com internally and externally with the clients.
3. Greater flexibility of supply chains

Key Pillars of Industry 4.0
Measures to Prevent Similar
Risks in the Future, June 2020 Autono
mous
Invest in supply chain Robots
resiliency and risk mitigation
Cybersec 3D
urity Printing
Expand supplier and
resource pool to give greater
flexibility
Invest more in localised Cloud

production Computing
Internet Augment
of ed
Reduce supply chain Things Reality
processes and resources to
simplify supply chain
management
0% 10% 20% 30% Big Data Simulati

% of total respondents Analytics on

GE Appliance expands microfactory network in India
▪ In 2014, GE Appliances opened its first microfactory in Louisville,

KY, USA. The goal of the factory was to create a space for
engineers to work on new projects that could be available for
small-scale production.
▪ Following the success of the initial microfactory, GE Appliances

opened its second microfactory in India in 2019.
▪ The success of microfactories showed that the concept of creating

small and collaborative environments has significant value, as it
helped to create and launch new cooking and ice cream-making
Source: GE.com devices.
Latin America and Eastern Europe could

benefit from production localisation
Invest More in Localised Production Average Wage per Hour by Region, 2019
Automotive North America

Apparel and personal
accessories Western Europe
Household Essentials Australasia
Packaging World
Beauty and personal care Asia Pacific
Food and beverages Eastern Europe
Consumer electronics Latin America
0% 10% 20% 30% 40% 50% 0 5 10 15 20 25 30

in USD
Japanese auto suppliers eye diversification from China
▪ Kasai Kogyo manufactures and supplies car interior and

roof trim parts, with one of the largest buyers being
Japanese car maker Honda. Kasai Kogyo’s production in
China was halted due to the outbreak of COVID-19 and
the company searched opportunities to relocate
production to North America, Europe and Japan.
▪ Other Japanese suppliers working with Toyota, Nissan and

Mazda also plan to move production from China closer to
the end consumers.
Source:
Source:Kasai.co.jp
Kasai.co.jp
4. Repurposing manufacturing capabilities
Cost Structure in Selected Manufacturing Industries, 2019

100% Creating more
flexible supply
80% chains
60%
40% Collaboration with

existing players in
20% the supply chain
0%
Metal Products Hi-tech Goods Transport Equipment Chemical Products Machinery
Other Other Other Other Other Synergies with
Transportation Chemical Products Machinery Transportation Transportation other industries
Machinery Metal Products Business Services Business Services Business Services
Energy Rubber and Plastic Metal Products Utilities Hi-tech Goods
Utilities Business Services Hi-tech Goods Energy Metal Products
Intra-industry Intra-industry Intra-industry Intra-industry Intra-industry Better adaption to
Industries with changes in end-
similar cost consumer
structure: Machinery Transport equipment, Machinery, hi-tech Plastic products, Metal products, demands
medical equipment goods pharmaceuticals transport equipment
Repurposing production to help fight COVID-19 pandemic
▪ During the outbreak of COVID-19 the UK faced rising

shortage of lung ventilators. In response, aerospace
industry led by Meggitt and automotive industry led by
McLaren and Nissan repurposed their production facilities
to speed up ventilator production.
▪ For example, McLaren used its engineering, logistics and
product development experience and technical
capabilities to speed up ventilator production. The
company was able to produce 50% of components in its
factory and used a network of 117 suppliers to better
source other components.
▪ Thanks to these efforts McLaren was able to produce 200
ventilators a day – four times the typical weekly output of
Source: McLaren.com medical equipment manufacturers.
5. Greater collaboration
▪ More information flow across
Measures to Prevent Similar Risks in the Future, June 2020 supply chains
Improve client/customer communications
Improve internal communication channels
40% 42% 44% 46% 48% 50%

▪ Better reaction time during
crisis
Improve Client/Customer Communications Splits by Industry
Consumer health
Automotive
Packaging
Technology
Beauty and personal care ▪ Collaboration between
Food and beverages
Financial services industries
Consumer electronics and appliances
0% 20% 40% 60%
Automotive industry collaborates to speed up recovery

▪ The outbreak of COVID-19 has disrupted automotive
industry’s supply chains, with smaller suppliers taking the
heaviest hit. To accelerate production of components and
speed up recovery GM and Ford initiated fast-payment
programmes to their suppliers.
▪ In GM example, the company partnered with Wells Fargo to
provide earlier payment to suppliers. GM later pays the full
amount to Wells Fargo once components are received.
▪ European Automotive Suppliers’ Association also makes
coordinated effort to speed up industry’s recovery. In March
2020 the association members adopted Code of Business
Conduct which sets up employee safety, transportation and
Source: GM.com
ethical business rules during COVID-19.
Contract manufacturing can help to diversify

production
Largest Contract Manufacturers, 2019
Revenue, USD Global contract
Company Country Industry manufacturing market
million
valued at USD100-189
Hon Hai Precision Industry billion in 2018
Taiwan USD175,617 Hi-tech Goods
(Foxconn)
Pegatron Taiwan USD44,207 Hi-tech Goods

Pharmaceutical
companies plan to
Gree Electric Appliances China USD29,024 Hi-tech Goods
accelerate switch to
contract manufacturing
Hi-tech Goods,
Flex Singapore USD26,210 Machinery,
Precision Tools
Pharmaceuticals, Helps to achieve best

Thermo Fisher Scientific USA USD25,542 compromise on Price,
Source: Fortune 500
medical goods
Quality and Time
Contract manufacturing in pharma industry
▪ Pharmaceuticals companies, biotech

companies, researchers and
government agencies in the USA
increased collaboration efforts during
COVID-19 pandemic.
▪ In August 2020 Pfizer announced it will
cooperate with Gilead Sciences to
manufacture and supply investigational
treatment from COVID-19.
▪ Pfizer will act as a contract
manufacturer and will use its
production facility in Kansas to
Source: Pfizer website
manufacture remdesivir for Gilead.
CONCLUSION 41
Main takeaways
Outlook for Advanced Economies started improving. However, global second wave and
COVID-19 vaccine delay risks should not be overlooked.
Asia Pacific region is set to recover quickest from COVID-19 economic downturn.
Supply chains are expected to become more flexible and transparent, encouraging
collaboration between suppliers and manufacturers.
Production localisation is expected to accelerate post COVID-19 as companies aim to

operate closer to the end consumers.
Thank You
Justinas Liuima, Senior Consultant Giedrius Stalenis, Economist
justinas.liuima@euromonitor.com giedrius.stalenis@euromonitor.com
@JLiuima @gstalenis
linkedin.com/in/justinas-Liuima/ linkedin.com/in/giedrius-stalenis-9b7b42164

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5 Trends Defining

the Future of Manufacturing

MANUFACTURING SECTOR TODAY

5 KEY TRENDS SHAPING THE FUTURE

Overview of Economic Trends

The global economy and COVID-19: The great lockdown

Real GDP Growth Forecasts: 2020

-15.0 -10.0 -5.0 0.0 5.0 10.0 15.0

Public debt will be key concern for major economies

Global Financial Crisis COVID-19 Pandemic

Q2 GDP growth at historic lows

-5.00 Israel, -6.71

United Kingdom, -22.78

Source: Euromonitor International from IMF/OECD/Eurostat/national statistics

Consumer confidence started recovering but

Consumer Confidence: Jan-2019 to Aug-2020

China Japan USA Germany United Kingdom

Source: Euromonitor International from IMF/OECD/Eurostat/national statistics

Asia Pacific will be the least affected region

Real GDP Growth 2020

-2.0 Lithuania, -2.1

-8.0 Canada, -6.5

-10.0 South Africa, -8.5 Croatia, -8.7

Asia Pacific will recover fastest

GDP Index under the Baseline Scenario: 2019-2025

4 out of 5 fastest recovering countries will

Baseline and C19 Pessimistic1: 2020 and 2021 growth

Source: Euromonitor International Macro model

Asia Pacific will recover fastest

GDP Index under the C19 Pessimistic2 Scenario:

Western Europe Asia Pacific Western Europe Asia Pacific

Manufacturing Sector Today

COVID-19 Impact on Industries

Negative impact Neutral impact Positive impact

© Euromonitor International Source: Euromonitor International

Growth forecasts by industry, 2020

© Euromonitor International Source: Euromonitor International

Economies are forecast to start recovering in 2021

Total Production Value, Entire Economy 2015-2023

Asia Pacific Australasia Eastern Europe Latin America

© Euromonitor International Source: Euromonitor International from national statistics

Manufacturing sector forecast to faster recovery

Manufacturing Sector Services Sector Retail and Wholesale

150 150 150

130 130 130

110 110 110

© Euromonitor International Source: Euromonitor International from national statistics

Fewer companies expect negative impact from COVID-19

April 2020 Results June 2020 Results

Africa 20% Africa 18%

Middle East 26% Middle East 22%

South America 32% South America 37%

North America 49% North America 45%

Asia 45% Asia 36%

Europe 57% Europe 40%

Long-term changes in industries: adapting to the “new normal”

Production Diversified Supply Automation Digital Strategies Social Distancing

5 Key Trends Shaping The

Companies rethink their strategies to better

Measures to Prevent Similar Risks in the Future, July 2020

1. Transition towards demand-driven supply chain

Steps to Manage Supply Chain Changes

Heinz takes the Direct-to-Consumer approach