Rising input costs
Energy above all, and a cost base that has moved faster than most pricing structures.
Sector 04 / Industrial and manufacturing
Traditional and emerging businesses, from heavy industry through to advanced manufacturing.
Cost and regulatory pressure on one side, onshoring and the transition to net zero on the other.
Sector overview
Cost pressure on one side, Government intervention on the other.
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
Four forces on the cost base.
Two of these compress margin and two create room to invest, which is why the sequencing matters more than the list.
Regulatory burden and ESG
A heavier compliance load, and the requirement to show a credible response to ESG expectations.
Onshoring and net zero
Government intervention to increase supply chain resilience, and subsidies for the transition.
Industry 4.0 and skills
AI, robotics and analytics offering productivity and quality gains, and a partial answer to skills gaps.
Selected client examples
Three industrial engagements.
Named clients are withheld. Each of these ran with a small, senior team working alongside the client’s own people.
Corporate strategy
Building products manufacturer
Corporate strategy development.
- 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
Market expansion
Industrial recycling operator
Market expansion strategy.
- Developed a geo-mapped database of competitors and recycling material sources
- Identified potential acquisition and joint venture targets within relevant catchment areas
Cost reduction
ASX-listed cement manufacturer
Cost reduction and performance improvement.
- 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
Starting a conversation
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