These are exciting times for Hong Kong.

As Industry 4.0 (the current trend of automation and data exchange in manufacturing technologies) gathers pace across the globe, the Hong Kong government is betting big on reindustrialization. It is making Hong Kong more competitive and transforming the city into an innovation-based economy. With a budget to back it up, they have laid their cards squarely on the table.

After forming a strong foundation in the manufacturing sector and establishing itself as the region's leader in research and development, new investments in infrastructure - some of the most technologically ambitious the modern world has ever seen - are a sign that Hong Kong is ready to be revitalized.

Underpinning it all is the need for smart logistical support. Because, as the times change, so do the delivery, connectivity and resource requirements that tie it all together. Without these, even the smartest technology, the most developed infrastructure and the grandest designs could end up a busted flush.

Reindustrialization relies heavily on cutting-edge research and development capability. Innovation cycles are shorter than ever, and the need to continuously innovate products has created speed-to-market hurdles that either didn't exist, or weren't as difficult to get over as before.

Then of course there's the increasing pressure from a constantly expanding pool of competitors. To deal with this, the need for logistical support is changing. Countries and companies either keep up or risk falling behind.

The manufacturing sector has long been associated with mass production and bulk shipping, but more modern manufacturing techniques have led to a shift in focus to smaller-quantity and more time-sensitive shipments to support faster prototype production. Scaling up comes later.

One of the new technologies that is both supporting and benefitting from this shift in market dynamics is 3D printing. The advantages of this are clear for all to see in the shape of vastly shorter design validation times and a reduced need to stockpile inventory, which together lead to significant cost savings. This is no longer the technology of tomorrow; it is the technology of today.

This strong foundation in manufacturing, and now investment in reindustrialization, is a chance for Hong Kong to further capitalize on its R&D capabilities, while also benefiting from dynamic logistics development in the Guangdong-Hong Kong-Macao Greater Bay Area. The city, as the area's innovation center, can focus on research and product development, while leveraging the manufacturing expertise of other powerhouses nearby.

The Hong Kong-Zhuhai-Macao Bridge will help with this integration and has been built to meet the increased demand for the transport of people and freight across the Bay Area, with the driving time between Hong Kong and Zhuhai having been slashed from over three hours to less than one. With the nature of Industry 4.0 revealing that time is money - perhaps more so than ever - this kind of time-saving could prove crucial to Hong Kong companies in getting their products to the market quickly.

Such an unprecedented level of advancement in the region's multimodal infrastructure is one of the reasons the IMF forecasts Asia to maintain strong GDP growth of 5.4 percent in 2019. This can only be good news for local businesses looking to expand their horizons.

When a company has to spend time managing supply chain operations and filling in piles of paperwork, instead of focusing on core priorities - like product development, customer service and business growth - it may not be able to achieve its full potential. In order to accelerate the pace of products hitting the market, companies should therefore consider outsourcing their logistics.

Funds are always stretched, and companies naturally want to maximize their return on investments. Enlisting the support of an international logistics partner with advanced manufacturing capabilities and a far-reaching global express network enables businesses to streamline workflows, freeing up more time to focus on what matters most.

The logistics sector has been - and will continue to be - the backbone of Hong Kong's economic development. This will help the city to advance through different phases of development across many decades; from manufacturing to financial services and now forward on to reindustrialization and the potential opportunities that come with it.

Yes, these are indeed very exciting times.

The author works with an international logistics operator and is a managing director of its Hong Kong and Macao unit.

http://www.chinadaily.com.cn/hkedition/2019-05/06/content_37465450.htm