September 2023

Executive summary

Industry 4.0 is transforming product and consumer convergence, with manufacturing companies looking for solutions to drive increased capacity, speed and quality. This transformation is happening right now — and picking up pace — accelerated by the growing opportunity and normalization of x-shoring.

Digitization, AI and integrated tech platforms are streamlining operating processes and connecting transportation, payment and workforce resourcing, creating a new generation of 'smart factories'.

Buoyed by technological advances, spurred into geographical decisions through pandemic experience and geopolitical havoc, what will the manufacturing landscape look like in the near future?


  • Heightened business resilience concerns following the global COVID-19 pandemic have led to a shift in risk tolerance and a drive for increased agility, production efficiency and responsiveness to emerging risks. Manufacturers are re-evaluating supply chains and reshoring operations to adapt to a changing economic reality.
  • As inflation, geopolitical tensions and supply chain bottlenecks continue to dampen growth, manufacturers are exploring new opportunities to reduce cost including where Industry 4.0 technologies can help to close the labor price gap. Technology and digitization of production look set to become a game changer for the manufacturing sector, globally.
  • Industry 4.0 and investment in IoT and AI led technology to drive efficiency is influencing the trend to re-shore skilled labor and manufacturing operations in highly technologically developed locations.
  • In McKinsey's annual survey (2022) tracking the progress of Industry 4.06 within the manufacturing sector, 94% of the respondents said that digital transformation and automated production kept their operations running while 56% said Industry 4.0 technologies had been critical to their COVID-19 crisis response.

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CONDITIONS AND LIMITATIONS Gallagher's global operations, including a network of correspondent brokers and consultants, offers client-service capabilities in more than 130 countries around the world. This report and supporting information is not intended to provide legal or financial advice and reflects our understanding as of September 2023. It should not be regarded as a comprehensive statement of the law and/or market practice in the regions covered. You should not act upon information in this publication nor determine not to act, without first seeking specific legal and/or specialist insurance and risk management expertise. Should you require advice about your specific insurance arrangements or claim circumstances, please contact your Gallagher account representative.

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