In recent years, the global manufacturing landscape has been profoundly affected by megatrends such as digitalisation, automation, the emergence of a low-carbon economy and the transition to energy-efficient processes, the reconfiguration of global supply chains, as well as increasing geopolitical uncertainty and economic volatility. These transformations are creating both new opportunities and complex challenges, particularly for small and medium-sized enterprises (SMEs), which are vital to industrial ecosystems but often face more onerous and distinct barriers in adapting to these rapid changes than larger firms.
This report aims to explore how global megatrends are reshaping the economic landscape for manufacturing SMEs, and how policy can better support their ability to anticipate, adapt and respond.
Focusing on three strategically significant manufacturing sectors – automotive, electronics (semiconductor) and machinery – the report examines how these trends are unfolding across industries. It analyses the differentiated challenges and opportunities SMEs face, depending on their roles within shifting supply chains and emerging technological ecosystems. The report also examines how governments are responding through both broad industrial strategies and SME-specific policy initiatives.
Drawing on in-depth case studies and policy mapping across selected OECD member countries – France, Germany, Japan, Korea and the United States – the report presents detailed country profiles that examine national manufacturing landscapes, SME readiness and key policy measures to support their transformation, including broad industry-level policies and targeted support for SMEs. Building on this analysis, the report identifies emerging trends and policy insights, underscoring the need for integrated, multi-layered industrial strategies that recognise and empower SMEs as central actors in shaping future-ready manufacturing systems.