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Investors Interest Turns to Manufacturing Sector

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Industry 4.0 and the rise of additive manufacturing is changing the “value” of manufacturing on the stock market. A traditionally neglected sector has turned a new leaf with investors turning to the manufacturing sector and discussing large investments in the industry. 

Industry 4.0 combines and connects digital and physical technologies—artificial intelligence, the Internet of Things, additive manufacturing, robotics, cloud computing, and others—to drive more flexible, responsive, and interconnected enterprises capable of making more informed decisions.

Neil Bourne, MP of Eaton Square, has a background in venture capital and management consulting and provides insights into the rise of manufacturing investments. 

He states, “we are seeing a new generation of ‘capital-light’ manufacturing and engineering businesses that are taking advantage of Industry 4.0 technological advancements to create business models that are starting to offer investors the levels of scalability and return previously only available in software/digital businesses.”

This shift away from software or online businesses comes after the run on effects of COVID-19 demonstrating how manufacturing sectors are crucial to the longevity of a country’s economy. New products in new markets will sustain the sectors future growth, sparking investors interest.

Manufacturing is arguably where the biggest technological innovations are occurring. As a result, it’s hard not to see the scalability of this market and investors are aiming to get on the front foot. 

Most investors aren’t after a financial flip, they are looking for two main things. Firstly, the scalability of the business itself. Secondly, they’re looking for those whose technological advancements are driving commercial growth. As it is arguably where the biggest technological innovations are occurring, it is no surprise investors are turning their attention to the manufacturing sector.

Managing Director of Advanced Manufacturing Growth Centre (AMGC), Dr. Jens Goennemann, “Australian manufacturing is a job multiplier, providing 3.6 additional roles in complementary industries for every direct manufacturing role. State-of-the-art manufacturing creates roles that reach way beyond production. It employs designers, engineers, logistics managers, sales, marketing and support staff in addition to the equally important physical act of production.”

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