IDB Invest urges the Latin American region to invest in the digitization of the manufacturing industry

MADRID, 25 Feb.

IDB Invest urges the Latin American region to invest in the digitization of the manufacturing industry


IDB Invest, a member of the Inter-American Development Bank (IDB), has urged companies in the manufacturing sector in Latin America to commit to the digital transformation of their value chain with the aim of differentiating, evolving and better serving their customers.

This is one of the main conclusions of the report 'Digital Transformation of Manufacturing in Latin America and the Caribbean' prepared by IDB Invest and NTT Data, in which investment in digitization has been defined as "essential" for companies to update their processes and technologies in the different links of the value chain.

Said study shows that the maturity of the manufacturing industry in the region is in an intermediate position, achieving a rating of 2.97 on a scale of 5. At the same time, the study highlights the potential of the region to improve its competitiveness and position itself "as the main alternative" in the redesign and migration of supply chains worldwide, through the adoption of digital solutions.

"Digital transformation undoubtedly helps manufacturing companies in Latin America and the Caribbean to compete, since many of the tools will allow them to improve their productivity," explained Rodrigo Navas, head of IDB Invest's Manufacturing unit.

The director of Digital Strategy of NTT DATA has spoken along the same lines, who has pointed out that if Latin American companies manage to digitize and become more competitive, they will "increase" the opportunities to capture the investments derived from the relocation of value chains currently installed in China and other Eastern countries.

IDB Invest has also highlighted the benefits of industry 4.0 and has underscored the importance of investing in these technologies to integrate new digital solutions.

Likewise, the bank recalled that digitization has a "potential" role in accelerating sustainability agendas. "The latter becomes more relevant when considering challenges that impact the sector such as climate change," the report states.

The manufacturing industry employs 20% of the active population and contributes 15.7% of the region's GDP, according to data managed by IDB Invest. Those companies that have invested in digital transformation have been able to reduce costs and improve the quality of their products.