Maymuna al Adawi of the Ministry of Commerce, Industry & Investment Promotion and organiser of the popular Tejarah Talks series shines a light on Omani manufacturing, discussing rising non-oil exports, creative micro-manufacturers, unique product offerings, makeovers and more.
Q: You have been running Tejarah Talks since February what has been the response?
A: That is right. In partnership with the Ministry of Culture, Sports & Youth, Oman Business Forum, HSBC and SOHAR Port & Freezone we have held sessions on sustainability and corporate culture - bringing together established as well as emerging business leaders in order to push boundaries, educate as well as inspire action. I must say the response from attendees has been incredibly positive and encouraging.
Q: The theme for May’s Tejarah Talks is ‘Manufacturing Matters’ who is on the panel?
A: For the May 18 session Cinzia Farisè, CEO, Oman Cables and Nadia al Zakwani, Managing Director, Endemage will join Eng Hilal al Shibli, General Manager, Makers Oman Centre and Firas al Balushi, CEO, Innovation Factory to discuss the importance of manufacturing to the success of Oman Vision 2040. His Highness Sayyid Dr Adham al Said, Founder, The Firm, will moderate the panel discussion. We think now is a good time to look at the changing world of manufacturing and understand not only how Omani companies can stay competitive but also lead the pack.
Q: So, how is Omani manufacturing doing?
A: Oman’s a country that makes things. From car batteries, fibre optic cables, footwear, ceramic tiles, sanitary ware, fragrances to washing powder, the products manufactured in the sultanate are incredibly diverse. Representing 9.5 per cent of GDP and employing over 200,000 people, locally-made goods are exported to more than 130 countries.
Without doubt, manufacturing is an integral part of Oman’s economic fabric; it drives innovation, contributes to employment across all skills levels and in all governorates and plays a crucial role in our return to export-led growth post-pandemic. In fact, Oman’s non-oil exports grew 91.2 per cent to US$15 billion in 2021 up from $7.8 billion in 2020. A welcome sign that Omani products are proving popular with buyers worldwide.
However, manufacturing is in the midst of profound change. From the COVID-19 pandemic to climate change from the explosion of new technologies affecting customer choices and preferences to global supply chain challenges. Manufacturing is going through one of the most intense periods of change in its history.
Q: What are the manufacturing trends we should be looking out for?
A: Breathing new life into the sector is the growth of niche micro-manufacturers - these are small businesses typically employing fewer than 10 people - that are catering to a specialized market, one generally neglected or forgotten by larger firms. They are often innovative twists on old ideas, completely new innovations or throwbacks to lost ways of doing things. And there is a wide variety of angles for this business model and it can mold to any area of the economy, from high-end fashion to precision engineering. It is an exciting space.
Though small in size, many of these micro-manufacturers are becoming an economic force to be reckoned with. A revolution in manufacturing is coming. The power of automation and the dropping of the costs of tools is already altering the landscape of how things are made in Oman.
It is important to remember the micro-manufacturing sector is part of a much larger creative economy that represents about 3 per cent of global GDP, creating around 30 million jobs and generating $2.2 trillion in revenue. It is big business.
We now live in a world defined by personalization and unique product offerings. Thanks to the rise of technology that allows the customization of everything from textiles to furniture, there is no longer such a thing as “one size fits all”. Smaller cultures that function within the wider culture are becoming more common, as is the acceptance of a variety within tastes and lifestyles. The Omani marketplace is changing rapidly to accommodate this new culture of diversity and it is doing this through niche micro-manufacturers.
Q: Who are these micro-manufacturers?
A: They are artists, tailors, builders, programmers, engineers, painters, woodworkers, filmmakers, bakers, graphic designers and more. They are a small but influential and quickly growing group of young creatives that are transitioning from hired talent to entrepreneurs taking advantage of Industrial Revolution 4.0. They just want to design and make cool things. I am very optimistic about this revival of entrepreneurial manufacturing.
Q: Who is supporting them?
A: Capitalising on the opportunities presented by micro-manufacturing are a number of small business programs that are helping young Omanis turn their business ideas into reality by providing the necessary tools, resources, mentoring and support networks. For example, we have the SME Development Authority, Injaz Oman, the Zubair Small Enterprise Centre, Madayn’s National Business Centre and the Makers Oman Centre on Innovation Park Muscat, all hotbeds of entrepreneurship.
Aided by these organizations young Omani entrepreneurs are setting up manufacturing businesses, attracting funds to their projects and figuring out how to build their products and services locally. They do not need large factories. Instead, they require compact, manufacturing facilities tailored to small, flexible production runs. For many talented Omani designers, inventors and makers, micro-manufacturing will be the key to their commercial success.
Q: Does Omani manufacturing need a makeover?
A: Post-pandemic we are seeing a change in the nature of what work looks like on Oman’s production lines. Old stereotypes of dirty factories with blue-collar workers mindlessly repeating the same task over-and-over are shifting to work that requires highly skilled, creative and tech-savvy problem solvers. Sadly, many remain blind to the reality that Omani manufacturing jobs are a unique blend of design, technology and robotics. Jobs that are often well paid.
Data from a recent Deloitte Millennial Survey shows that only three in 10 parents would consider encouraging their children to take up jobs in manufacturing. The survey also reveals that just 32 per cent of millennials think of manufacturing as clean and safe while 28 per cent considered jobs in the sector stable and secure.
Omani manufacturers clearly need to consider ways to stand out and change this poor image to better attract - and just as importantly retain - the next wave of Omani talent. Changing the perception of manufacturing will be key to winning the hearts and minds of young local talent, and creating a positive employee experience is critical. Happy and engaged employees are the best advertising – and manufacturing cannot rebrand without them.
Having said that, we are all responsible for the image of manufacturing, it is vital to the success of Oman Vision 2040 and our shared prosperity. It is important we invest in the skills needed to maintain its strength. Together, it is crucial we inspire more young people to see manufacturing as a viable, attractive, exciting and rewarding career choice.
Q: So attracting young talent is key to the success of Omani manufacturing
A: Absolutely. As I mentioned earlier, manufacturing is no longer the dark, dirty and dangerous place it once was. In truth, it has evolved and we have seen incredible changes just in the past decade. Employers in the sector are now looking to recruit skilled workers that are fluent in operating and optimizing automated technologies and smart solutions, making for a more desirable work environment and offering young Omani talent a variety of highly attractive career options.
Q: One final question – is the sustainability debate having an impact on Omani manufacturing?
A: This is an important question. The fast rise of environmental, social and governance (ESG) factors is redefining and elevating sustainability in Omani manufacturing as never before. Attracting investment as well as talent will be tied to ESG ratings. And as Omani consumers and investors gravitate towards more sustainable brands and business practices, environmental accountability has become a hot topic. So reporting on energy consumption, emissions, carbon footprint and diversity will continue to rise. Today, manufacturers the length and breadth of Oman understand the substantial financial and reputational benefits that can be realized by paying early attention to developing an ESG strategy. Indeed, those that steal the march will be best placed to prosper.
Tejarah Talks is open to all and free-of-charge to attend. To reserve your May 18 seat email TT@tejarah.gov.om
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