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CHAPTER 1

Key Trends

What's Driving General Counsel Change?

Several key trends are driving this shift in the challenges and responsibilities of GC in the manufacturing sector.

 
TREND #1   
TREND #2   
TREND #3   
Trend #1:

An intensifying regulatory environment

94% of executives see an ever-increasing volume of regulations and greater significance of the impact of the regulatory environment on their organizations; 53% rank the compliance and regulatory environment as the trend most relevant to their organization from a legal point of view.

For some companies, regulations may require charting new territory. Yet actively managing a challenging and intensifying regulatory environment can serve as a competitive edge.

TREND #1   
TREND #2   
TREND #3   
Trend #2:

Growth by global expansion

One in five companies expect substantial or major market shifts. These are taking European manufacturers away from their traditional Western European home markets –– and leading to an increased presence in Asia, Eastern Europe and the Middle East.

A number of legal concerns arise from international expansion. Ensuring compliance with these disparate regulations requires in-depth knowledge of international legislation, as well as real-time information on the kind of data being collected, where the data are being transferred, how the data are being stored and what databases and systems are managing the data –– expertise that is typically beyond a GC's scope.

TREND #1   
TREND #2   
TREND #3   
Trend #3:

Technology's transformation of manufacturing

The fourth industrial revolution and its innovative technologies are transforming the manufacturing industry. However, because the manufacturing sector is built around machines, technological advancements are not only an opportunity –– they're a considerable risk. The risks of IoT will only become more apparent over time, but right now, the biggest issue is cybersecurity.

What is the Fourth Industrial Revolution?

According to the World Economic Forum, unlike the Third Industrial Revolution — which leveraged electronics and information technology as a way to automate production — the Fourth Revolution is "characterized by a fusion of technologies that is blurring the lines between the physical, digital and biological spheres."

The more technology redefines manufacturing, the greater the impact on GC. Technology is even altering the competitive landscape. And then there's the effect of technology on the supply chain. Myriad legal issues can arise from an agile and transparent supply chain, including the ability to vet all participants or ensure compliance with international labor laws.

73% of executives say legal risks are not completely factored into growth decisions – despite the fact that they agree the regulatory environment is continuing to intensify and become more critical to business success.

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YOU'RE RIGHT!

77% of respondents said maintaining a stable and business-friendly regulatory and legal environment is a chief concern of expanding internationally.

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NICE TRY!

77% of respondents said maintaining a stable and business-friendly regulatory and legal environment is a chief concern of expanding internationally.

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