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.