Non-metal and advanced materials

After three years of falling sales and production, recovery has now begun for the non-metal materials industries (glass, ceramics, paper & paper products). At the same time, the advanced materials industries (composite, battery, fuel cell, solar cells, hydrogen storage and magnetic materials) continue to grow significantly. But despite the recovery, numerous challenges remain.

Glass and ceramics industry

The glass and ceramics industry is facing the challenge of a significant concentration of players in the market, a shift in production to BRIC countries and the segmentation of the high-tech glass and ceramic market. Rising energy costs and government regulation of energy-intensive companies are putting pressure on the cost base and increasingly limiting companies' options for action. With an upswing occurring in all segments of the industry, the time is right for firms to position themselves strategically and focus on growing markets and market segments. A key objective here is to improve the global footprint in the light of the near collapse in export sales.

Paper and paper products industry

Turnaround has also been achieved in the paper and paper products industry, following three years of declining production and exports. In 2010 production was up by 10% and sales by 17%. Export is currently the main driver, growing 15% – more than twice as fast as domestic sales (up 6%). At the same time, revenues have been hit hard by the enormous increase in commodity prices, which are up 70-80%. Companies must now improve their cost base by optimizing production and implementing resource conservation strategies and environmentally efficient technologies. By so doing, they can improve their competitiveness, maintaining European market leadership and holding on to fourth place worldwide, behind the USA, China and Japan.

Advanced materials industries

The advanced materials industries are growing fast, driven by an expanding market for renewable energy and ambitious CO2 emission reduction goals. Strategic challenges involve evaluating business models, developing organizational structures for fast-growing businesses and implementing growth strategies. Some segments face considerable risk due to the volatility of the commodity market (e.g. for rare earth metals, lithium, precious metals). Companies should consider additional measures to secure supply by establishing partnerships or achieving vertical integration of critical commodity suppliers.

We help our clients on all strategic issues facing the non-metal & advanced materials industries, from reducing costs and achieving operational excellence to supporting growth. Typical players are medium-sized firms; we help them tackle various issues such as holistic cost reduction or achieving operational excellence.

We also help clients develop strategies for expanding their business fields and boosting sales. Our growth strategy expertise comes into play when coordinating product portfolios, developing new business models or setting up a professional sales and service organization. Furthermore, we help firms exploit levers for reducing the cost base, improving purchasing and supply chain management, and professionalizing their global footprint.