Building and delivering the case for change in the industrial sector (PDF)

PDF Report: Explore how industrial organisations can navigate challenges and build a sustainable case for change to drive growth and resilience.

In brief

• Strategic realignment: With rising costs of capital, companies are increasingly evaluating their international portfolios and assets to achieve higher margins through focusing on generating higher growth and lowering operational costs.
• Supply chain resilience: Geopolitical tensions and material shortages are increasing pressure on supply chains, prompting organizations to evaluate and enhance their supply chain resiliency, considering localising operations to mitigate risks associated with increasingly frequent global disruptions. Tariff uncertainty and the war in Ukraine have highlighted the need for robust supply chain strategies post COVID-19.
• Technological advancements: Many organizations are using outdated systems and processes which are no longer suitable for a digital-centric economy. Driven by the need for new or changed business capabilities to drive productivity and growth or improve operational costs, 68% of CEOs from major global industrial companies are increasing their digital and technology investments. AI and other technological advancements open the way to new ways to drive innovation and operational efficiency. For example, predictive analytics using AI algorithms and IoT data can help manufacturers anticipate demand fluctuations, allowing for more responsive production schedules.
• Energy transition: The shift towards sustainable energy practices is reshaping operational strategies across the sector. Organizations are recognizing the importance of aligning their operations with sustainability principles to meet increased regulatory requirements and consumer expectations.