Find out what opportunities, challenges and trends are shaping the metals sector in 2015. Key highlights from KPMG International’s Global Metals Outlook 2015.
The past few years have been challenging for many metals organizations. Facing heightened pressure as a result of overcapacity and sagging iron ore prices, metals manufacturers are now entering a period of intense competition. Everyone is looking for new growth opportunities while – at the same time – remaining keenly focused on reducing costs.
The 2015 Global Metals Outlook combines the findings of our survey – which include responses from close to 50 metals executives around the world – withKPMG’s hands-on experience working across the sector to paint a clear picture of the challenges and opportunities now facing metals organizations.
Sales growth, stiff competition and cost volatility: Forty-nine percent say they are focused on sales growth; 49 percent are challenged by intense competition andpressure on prices.
New technologies and new markets: Sixty percent say that the adoption of new technology will drive future growth; 43 percent say they will grow through expansion into new markets.
Innovation and partnerships: Eighty-five percent believe that partnerships, not in-house efforts, will form the future of innovation for their organization; 81 percent are already adopting more collaborative business models with suppliers and customers.percent
Rising R&D investment and enhancing product lines: Thirty-two percent will spend more than 6 percent of revenues on R&D over the next year; 70 percent will funnelinvestments towards projects that deliver incremental innovation.
Supply chain organizations and visibility: Fourty-seven percent will focus on reducing their cost structure as a top priority; only 17 percent have complete visibility across the supply chain.