This report examines how metals organizations are focusing on improving their understanding of their cost and profit levers, entering into partnerships and driving innovation in order to create a platform for profitable growth.
Many metals organizations are now starting to reinvest in better understanding their profitability. Eighty-two percent of those surveyed said that their organization would place either a moderate or high priority on adopting processes and systems to achieve real-time measurement of product cost and profitability over the next 2 years.
Metals organizations are expecting to dramatically increase their spend on R&D and to leverage partnerships to drive innovation. Eighty-one percent say they now plan to spend upwards of 2 percent of their revenues on R&D over the next 2 years, compared to 65 percent of metals respondents who said they spent just 1 percent or less of their revenue on R&D over the past 2 years.
More than half (52 percent) of metals respondents say that their supply chain visibility efforts are primarily focused on better managing costs. At the same time, many are now seeking to leverage their strong relationships with top suppliers to better integrate their supply chain operations technology, with more than half saying that technology would be the biggest enabler for adopting new technology for supply chain data.