The world has changed for manufacturers. Preparation for uncertainty has become an industry norm, with executives expecting the impact of disruption—whether from geopolitical tensions, climate change effects, technology breakthroughs, or supply chain vulnerabilities—to increase by 15 to 25 percent over the next five years.¹

At the same time, advanced manufacturing is now flourishing in markets where stagnation had seemed intractable. Growth in the US manufacturing sector, for example, had languished at 1.4 percent over the past two decades. More recently, AI, digital technologies, sustainable features, and higher skill have reinvigorated the market: over the past five years, US industrials companies have generated total shareholder returns about 400 basis points higher than in the previous 15 years.

The accelerating pace of the Fourth Industrial Revolution (4IR) can help enable this type of next-level performance while also increasing workforce inclusivity and sustainability. The Global Lighthouse Network,² now in its fifth year, provides an expanding pool of examples. In effect, each Lighthouse cohort provides a three- to five-year look ahead at the future of operations across the value chain.

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https://www.mckinsey.com/capabilities/operations/our-insights/adopting-ai-at-speed-and-scale-the-4ir-push-to-stay-competitive