Machinery

In the future, manufacturers will prosper only if they stringently implement differentiated strategies in both the top and standard segments. Our approach covers all strategic issues for this industry, from reducing costs to achieving operational excellence to supporting growth.

Standard segments for Eastern Europe and the Far East

Continued growth in domestic engineering will be once again based mainly on exports in the coming year. Two trends are relevant to European manufacturers of engineered products:

• Geographical: More and more of their customers are from Eastern Europe and the Far East
• Technological: Most of the demand is for products from the middle standard segment

Due to numerous takeovers of European manufacturers of engineered products by Asian competitors, it is likely that the Europeans' technological lead will shrink and competition in domestic markets will become more fierce.

In the future, therefore, manufacturers will prosper only if they stringently implement differentiated strategies in both the top and standard segments. Companies thus need to drive forward business models for plant and services in the upper segment. In parallel, the middle segment has to be addressed more actively with needs-based machine concepts and continual cost optimization.

Our approach covers all strategic issues for this industry, from reducing costs to achieving operational excellence to supporting growth. In the environment characterized by medium-sized players we tackle different issues in holistic cost reduction or operational excellence programs.

Furthermore, we develop strategies to expand business fields and boost sales. Growth strategies come into play when coordinating the product portfolio, developing new service business models, and making the sales organization more professional. Opportunities for optimizing the cost base can be found in product design, improved purchasing and supply chain management and the professionalization of the global footprint.

Restructuring an industrial conglomerate

We assisted with the turnaround of a systems engineering company. Its product portfolio was streamlined and the predefined target market and segments were adapted. Sales and project management organization was professionalized, and a focus was placed on adding value in engineering, supply and service. Along with cost-optimization actions, this led to a permanent improvement in earnings and the successful continued existence of the company.

Developing a new machine series for the Far Eastern market

A midsize engineered products manufacturer was looking for opportunities to meet increased demand in South Korea and China for standard-segment products, so we jointly revised the machine concept. Design-to-cost programs reduced features of the machines to the exact standard expected in the target market, thus leading to dramatic cost reductions. Additional savings were made in purchasing through e-sourcing and supplier-base optimization, thus further reducing the production costs of the individual machine types.

Optimizing the global footprint

The sales markets of a leading manufacturer of lighting systems were steadily relocating to Eastern Europe. We assisted the client in adapting its vertical integration and supply chain to the changing conditions. In the process, wage-intensive and standardized process steps were offshored to Eastern Europe and service/sales organizations were expanded in the key Eastern European markets. The result was lower costs and shorter lead times.