Machinery/production systems
The global machinery industry was severely hit by the economic crisis in 2008 and 2009. Recovery since 2010 has been impressive. The industry is highly diverse – as is the range of winning strategies employed by players.
Different developments are seen around the globe. In Germany, production of machinery dropped by more than 20% between 2008 and 2009. Japanese production of machinery shrank by as much 40% in the same period. At the same time, China grew 6%.
The pattern of recovery is also varied. New orders and sales in tooling and plastics machinery have experienced an impressive recovery in recent quarters. But manufacturers of printing machinery are still struggling, readjusting their expectations for a long-term reduction in demand.
Despite this variation, a number of universal trends are visible in the global machinery industry, such as the continued rise of China and the emergence of mid-end technology, affecting all segments and regions on a similar scale.
In brief
Three major developments are having a significant influence on the global machinery industry:
- The ongoing shift in demand to Asia means that China will become the number one machine-building country in the world, with a leading position in many segments. The performance and level of technology of production systems in China are approaching European levels
- The mid-end performance segment is growing fastest and becoming a global battlefield. European and American OEMs are increasingly moving into this segment
- The energy efficiency of machinery is increasingly important, especially in Europe and Japan. In applications such as paper and glass production, substantial energy savings are possible thanks to modern technology
Our approach
Our approach draws on our profound industry insight and knowledge of best practice in all major machinery segments, from tooling machinery, rubber and plastics to packaging. In particular, we offer:
- Analysis of overall global market trends and their impact on specific segments, regions and levels of technology
- Detailed insights into individual segments, from market sizes, player assessments and economic and technological trends to changing operator requirements
- Full functional support, from long-term strategy development, target screening, M&As, product positioning and development to performance improvement and restructuring
- Support in implementing strategies on a day-to-day basis
Sample projects
Profitable growth, focus on China
We supported a machinery OEM in improving its sales and pushing profitable growth. First, we identified quick wins by aligning the customer portfolio and systematically screening the group's client database for top-line synergies. We then redesigned the operating KPIs to steer the sales organization and assess individual projects in the sales funnel. To identify profitable growth options in China, we systematically analyzed customer requirements and competitive positions there. We then made a market forecast of the relevant segments in the Far East, conducted interviews with operators to establish their qualitative requirements and purchasing criteria, and analyzed the competitive landscape of the market in China, including local OEMs and activity by OEMs from established markets in China.
Performance improvement and carve-out options
We supported a machinery OEM in analyzing and defining improvement levers along the value chain from engineering to assembly. Based on a thorough analysis of the reasons for unsatisfactory revenue and profit development, we defined initiatives to improve performance, working together with the management. We also defined options for improving the current product portfolio and boosting service revenue. In addition, we quantified and assessed different carve-out scenarios.
Financial, strategic and operational restructuring
We supported a machinery OEM in defining and implementing a restructuring project. We realigned the strategic position of the OEM by re-focusing it on core business and initiated strategic initiatives addressing the top and bottom lines. We also supported management and shareholders in their communication with the banks and implemented a monthly reporting system for financials and initiatives, creating full transparency on the progress of the restructuring.
