Industrial Spares Manufacturing Company
From intense global competition and a market-driven shift in workforce deployment to new demands for innovation, industrial and manufacturing companies are taking steps to redefine their market position and drive long-term supplier relationships with especially discerning clients whose focus is squarely on value. So just how are leading industrial and manufacturing companies addressing the mounting pressures on their bottom-lines? Are there any strategic courses they might take to avoid a commodity-driven race to the bottom of the pricing wars?
Industrial Spares Manufacturing Company
Leadership Perspectives on Industrial and Manufacturing Market Shifts
By Bobby Brady
From intense global competition and a market-driven shift in workforce deployment to new demands for innovation, industrial and manufacturing companies are taking steps to redefine their market position and drive long-term supplier relationships with especially discerning clients whose focus is squarely on value. So just how are leading industrial and manufacturing companies addressing the mounting pressures on their bottom-lines? Are there any strategic courses they might take to avoid a commodity-driven race to the bottom of the pricing wars?
Large companies that are mainly financially driven are continuing to embrace six sigma and similar performance management techniques that support their commitment to very high operational excellence. They're using their good cash flow to grow via acquisitions of younger, organically growing, innovative and creative companies. The most successful route to future growth comes by focusing on certain customers' needs and by addressing them better than anybody else, thus being able to charge for the value provided with little price competition, as demonstrated by the so-called hidden champions. But some of these market innovators are not as hidden as they once were. Some have grown quite large because of their ability to bring innovative solutions to their customers top challenges.
An increasing number of industrial and manufacturing companies are developing added value solutions rather than merely selling products. Many of these companies are developing strong technology (including Research & Development investments) and are focused on the development of a larger range of services. These extend from repair, spare parts management, training and float management to the development of specific packaging, reverse logistics for packaging, facility management and new software for the best use of equipment.
What is clear about the external pressures facing the world's manufacturing and industrial companies, however, is that not every producer is following the same course to their desired end game. An increasing number of companies across the Asia-Pacific Rim are moving their operations to low-cost countries such as China, India and Vietnam. Many companies are focusing on solution selling as opposed to commodity selling to avoid the commodity-driven race.
Through innovation, several companies have realised that they need to bring in new variants, more creative and faster methods of getting to the market, and improving service definitions and delivery. Businesses are furthermore exploring new markets where the realisations are better to offset the declining margins in other markets. Companies are increasingly looking for more adaptable, multi-skilled and generalist management talent.
In the United States, despite softness in some bellwether markets such as the supply chain, logistics, transportation and consumer goods sectors, most economic indicators still look positive for North America's industrial and manufacturing companies. The capital goods area is still pretty strong in products such as trucks, farm and construction manufacturing. Capital goods and heavy industrial manufacturing are still experiencing some pretty decent economic trends.
Along with the risk of truly global competition comes the risk of remaining static and unbending in the face of serious market challenges. Increased customer expectations of value may also be moving one's competitors to change their business strategy. As the rules of doing business within a fiercely competitive industrial and manufacturing environment continue to evolve, so too, do the requirements for world-class management leadership within these markets. In fact, the demands of corporate leadership executive search have never been higher in the industrial and manufacturing markets.
Bobby Brady markets the executive search talent of global executive search firm TRANSEARCH International which has representation in most of the major economic centres of the world with 59 offices in 37 countries. TRANSEARCH International was founded in 1982 and is a leading international executive search firm. Leadership Perspectives On Industrial And Manufacturing Market Shifts
By Bobby Brady
From intense global competition and a market-driven shift in workforce deployment to new demands for innovation, industrial and manufacturing companies are taking steps to redefine their market position and drive long-term supplier relationships with especially discerning clients whose focus is squarely on value. So just how are leading industrial and manufacturing companies addressing the mounting pressures on their bottom-lines? Are there any strategic courses they might take to avoid a commodity-driven race to the bottom of the pricing wars?
Large companies that are mainly financially driven are continuing to embrace six sigma and similar performance management techniques that support their commitment to very high operational excellence. They're using their good cash flow to grow via acquisitions of younger, organically growing, innovative and creative companies. The most successful route to future growth comes by focusing on certain customers' needs and by addressing them better than anybody else, thus being able to charge for the value provided with little price competition, as demonstrated by the so-called hidden champions. But some of these market innovators are not as hidden as they once were. Some have grown quite large because of their ability to bring innovative solutions to their customers top challenges.
An increasing number of industrial and manufacturing companies are developing added value solutions rather than merely selling products. Many of these companies are developing strong technology (including Research & Development investments) and are focused on the development of a larger range of services. These extend from repair, spare parts management, training and float management to the development of specific packaging, reverse logistics for packaging, facility management and new software for the best use of equipment.
What is clear about the external pressures facing the world's manufacturing and industrial companies, however, is that not every producer is following the same course to their desired end game. An increasing number of companies across the Asia-Pacific Rim are moving their operations to low-cost countries such as China, India and Vietnam. Many companies are focusing on solution selling as opposed to commodity selling to avoid the commodity-driven race.
Through innovation, several companies have realised that they need to bring in new variants, more creative and faster methods of getting to the market, and improving service definitions and delivery. Businesses are furthermore exploring new markets where the realisations are better to offset the declining margins in other markets. Companies are increasingly looking for more adaptable, multi-skilled and generalist management talent.
In the United States, despite softness in some bellwether markets such as the supply chain, logistics, transportation and consumer goods sectors, most economic indicators still look positive for North America's industrial and manufacturing companies. The capital goods area is still pretty strong in products such as trucks, farm and construction manufacturing. Capital goods and heavy industrial manufacturing are still experiencing some pretty decent economic trends.
Along with the risk of truly global competition comes the risk of remaining static and unbending in the face of serious market challenges. Increased customer expectations of value may also be moving one's competitors to change their business strategy. As the rules of doing business within a fiercely competitive industrial and manufacturing environment continue to evolve, so too, do the requirements for world-class management leadership within these markets. In fact, the demands of corporate leadership executive search have never been higher in the industrial and manufacturing markets.
Bobby Brady markets the executive search talent of global executive search firm TRANSEARCH International which has representation in most of the major economic centres of the world with 59 offices in 37 countries. TRANSEARCH International was founded in 1982 and is a leading international executive search firm. Leadership Perspectives On Industrial And Manufacturing Market Shifts
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