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Industrial and manufacturing

Growth strategy and cost reduction for manufacturers

We have assessed growth options for a building products manufacturer, new markets for a recycling operator and cost reduction opportunities for a cement producer.

Corporate strategy, market expansion and cost reduction for manufacturers and operators.

For a cement manufacturer, the team identified $40m in corporate and divisional efficiencies and a further $50m at its main production facility.

Building products manufacturer

Corporate strategy

Corporate strategy development.

Work and results
  • Assessed complex, vertically-integrated, state-specific markets
  • Evaluated potential joint venture and acquisition opportunities
  • Modelled the business and identified the need for significant performance improvement initiatives

Industrial recycling operator

Market expansion

Market expansion strategy.

Work and results
  • Developed a geo-mapped database of competitors and recycling material sources
  • Identified potential acquisition and joint venture targets within relevant catchment areas

ASX-listed cement manufacturer

Cost reduction

Cost reduction and performance improvement.

Work and results
  • Identified an initial $40m in efficiencies at corporate and divisional level
  • Identified a further $50m in benefits from efficiency improvements to the main production facility
  • Supported the initial execution phase, delivering significant run-rate benefits

Sector overview

Manufacturing costs and investment opportunities

Industrial and manufacturing sectors face pressure from rising costs, energy in particular, combined with an increasing regulatory burden and the need to respond to broader ESG trends.

At the same time, opportunities arise from Government intervention to increase supply chain resilience through the onshoring of selected industries, as well as subsidies supporting the transition to net zero.

Industry 4.0 technologies, including AI, robotics and big data analytics, create opportunities for improved productivity and product quality. They may also help address critical skills gaps in the industry. Even so, investment in workforce development and training remains a key strategic enabler for many businesses in the sector.

Market forces

The forces on the cost base.

Manufacturers need to weigh higher operating costs against investment in production capacity, energy efficiency and new markets.

01

Rising input costs

Energy above all, and a cost base that has moved faster than most pricing structures.

02

Regulatory burden and ESG

A heavier compliance load, and the requirement to show a credible response to ESG expectations.

03

Onshoring and net zero

Government intervention to increase supply chain resilience, and subsidies for the transition.

04

Industry 4.0 and skills

AI, robotics and analytics offering productivity and quality gains, and a partial answer to skills gaps.

From our library

Related reading.

Starting a conversation

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Discuss your growth plans, an acquisition or a performance challenge with a principal. We can explain the relevant work we have done in your industry.

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