„Industry 4.0 is the vital question of the German industry, however the response needs to be globally.“ – Joe Kaeser
German manufactures of the metal processing, electrical and mechanical engineering industry are world-leading (“Made in Germany”), nevertheless are effected by volatile raw material prices, rising energy costs and exchange rate risks. Producing industrial products is made nowadays predominantly by semi- or full-automatic production processes and is usually connected with high fixed costs. The current positive market development in Germany is driven by a cheap oil price, historical low interest rates and a weak euro.
Even if the situation in emerging nations is difficult, medium-sized manufactures are more and more forced to follow their major customers by international expansion („Follow Your Customer-Strategy”), especially to China, India and South America. High cyclicality of the capital goods industry challenges producers in terms of corporate planning.
The actual biggest challenge is the digital shift, which also implies opportunities for industrial companies to grow. The fourth industrial revolution is characterized by increasing digitalisation and networking of products, supply chains and business models (Internet of Things). The market for industrial products is fairly driven by technology. Improved management of horizontal and vertical supply chains, thanks to the digitalisation of key processes, allows an improvement of productivity of up to 20%.
Digitalisation of product and service offerings is key for a sustainable business success, implying profitable growth and a rising company value.
Our project references in the manufacturing industry:
- Agricultural machines
- Extrusion technology
- Filter technology
- Grinding and cutting discs
- Hazardous goods containers
- Industrial coatings
- Iron foundry
- Laboratory glass
- Optical media
- Precision stampings
- Refrigerated counters
- Sealing materials
- Soldering products
- Special heating solutions
- Swimming bath pumps
- Turning parts
Commercial Advisory has a comprehensive industry expertise within the manufacturing of industrial products. We support your company gladly with the strategic analysis and the evaluation of strategic options.
Further information: The Federation of German Industries (BDI)
Commercial Advisory Unternehmensberatung GmbH
+ 49 89 20355314
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