EDS predicts that eight major trends will influence companies in 2007, As manufacturers continue to watch shrinking margins, they are facing unprecedented challenges developing products in a fast-changing, global marketplace. Manufacturers must become more agile and work smarter in order to be competitive.

- Globalization - Companies must be able to leverage employees and resources around the world to meet the demands of customers.

- Market Volatility - Changes in client demands and fluctuations in currency are only two challenges that can affect a manufacturer's operations.

- Increasing Customer Demands - Customers no longer want mass-produced products. They do, however, want products that they feel are customized to their own unique needs.

- Accelerated Product Innovation - Not only have customer demands increased, but customers also want the product now.

- Outsourcing of Non-Core Competencies - Outsourcing will continue to increase, as manufacturers realize its importance in combating shrinking profit lines.

- Cost Pressure - To combat dwindling margins, manufacturers must always be looking at both sides of the ledger.

- Flexibility - To remain competitive, manufacturers need to produce multiple products on a single line or facility. Flexible assembly lines are, in many ways, the future of the industry.

- Competition - The marketplace has grown and shrunk at the same time. Manufacturers who are agile, nimble and quick to adapt will grow, while those who are slow and large will struggle.

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Prashanth Rai