The Fourth Industrial Revolution—Industry 4.0—calls into question the very definition of manufacturing, blurring the lines between tangible and intangible, digital and physical, product and service. At its core, Industry 4.0 redefines how manufacturers derive and deliver value. According to BDO’s 2019 Middle Market Industry 4.0 Benchmarking Survey, 99 percent of middle market manufacturing executives today are at least moderately familiar with Industry 4.0.
China will likely be the biggest business disruptor of the 2020s, but the discussion about how to respond has yet to take shape. A strategic framework should rebalance the global supply chains, bolster competitiveness, adjust to China’s market size, and solidify the West’s appeal. While much of today’s fast-changing debate is focused on China’s competition with the United States, we believe this paper’s findings will prove relevant for many years to come.