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Emerging Markets Continue to Invest in Supply Chain Management Technology

By Patrick Burnson, Executive Editor
August 16, 2013

The latest market data for emerging markets derived from the Cambashi Country Observatory (Q2 2013) shows that, in 2012, technical application spending in emerging countries (Brazil, Russia, India, China, plus Columbia, Indonesia, Turkey and Vietnam) grew 12% or $1.7 billion.

The Cambashi Provider by Industry Observatory forms the latest component of the Cambashi Market Observatories. The observatories present the company’s research into the global markets for design, engineering, product lifecycle management (PLM) and systems engineering applications. Using them, Cambashi is able to maintain multi-perspective datasets containing detailed information on software investment by country, industry and provider, and on the size of user communities.

The forecast predicts continued growth on technical application investment in the manufacturing industry sector among the larger economies in the emerging markets. Cambashi predicts Vietnam to have higher growth in 2013 and 2014 than India, second only to China.

Tony Christian, Marketing Director at Cambashi, said the continued growth in spending on technical applications in emerging markets – despite the economic slowdown even in the former main players China and India – is driven by two trends.

“The first is the continuing modernization of the manufacturing and construction industries in those countries,” he told SCMR in an interview. “The second is the expansion of their industrial capabilities from the former low-wage, ‘low tech’ manufacturing activities typically outsourced by Western firms.”

He added that the emerging countries have built on this base to cover the entire value chain, including leading edge design and product development.

China accounts for the largest share, at 42%, of the market for technical application expenditure in emerging countries. According to Cambashi market research, while China continues with strong technical applications growth, thanks to its manufacturing industry driving investment. Russia will not match the performance of 2012 and is likely to slow down in 2013 due to falling global demand for its main exports of oil and gas.

However, a second generation of nations that account for 11% of technical application expenditure in emerging countries (Columbia, Indonesia, Vietnam, and Turkey) is also making good progress, and growing faster than North America (US, Canada, and Mexico).


About the Author

image
Patrick Burnson
Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

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