1、How to succeed: Strategic options for European machinery Shifting growth patterns, increasing pace of digitization, and organizational changeHow to succeed: Strategic options for European machinery Shifting growth patterns, increasing pace of digitization, and organizational changeCOMPONENT SPECIALI
2、STS MACHINE MANUFAC- TURERS EQUIPMENT and other competitors worldwide are ready to make their move. Collaborating regularly since 2013, McKinsey & Company and the VDMA have sought to analyze the challenges currently facing mechanical engineering and help guide the sectors advancement into the future
3、. 2014 saw the publication of the first joint study, “The future of German mechanical engineering,” which proposed specific actions at an operational level. The present, second joint study has a broader strategic scope: it focuses on European mechanical engineering and its future strategic alignment
4、. Within the three thematic areas shifting growth patterns, increasing pace of digitization, and organizational change the present study identifies patterns that have proven successful and describes the requisite fields of action for each individual company, but also for Europe at large as an econom
5、ic hub. We are certain: if Europes mechanical engineering companies stay in touch with the pulse of the times, this European success story will continue. We trust that you will enjoy reading our study. Dr. Reinhold Festge President of the VDMA Wolff van Sintern Director, McKinsey & Company 1 E u r o
6、 s t a t , V D M A e s ti m a t e s ( r e v e n u e s : 2 0 1 5 , f o r e i g n v a l u e a d d e d : 2 0 13 , s p e n d o n r e s e a r c h a n d d e v e l o p m e n t : 2 0 1 1 )8 The European machinery industry has experienced i m p r e s s i v e g r o w t h a nd p r o fi t a b i l i t y o v e r
7、t h e l a s t s e v e r a l y ea r s. M a c r oec o n o m i c a nd t ec h n o l o g i c a l s h i ft s, ho w e v er , ar e on the hori z on, and pl a y er s i n thi s spac e ri sk los ing their c ompetitiv e advan t ag es i f t h e y a r e u n a b l e t o d e v e l o p a p p r o p r i a t e g r o w
8、t h s t r a t e g i e s o r b u i l d ad a p ti v e o r g a n i z a ti o n s . INTRODUCTIONEinleitung | 9 10 The European machinery industry is foundational to the European economy representing 12 percent of the European industry and employing about 2.9 million people. 2So far, the European machiner
9、y industry is a success story both in terms of growth and profitability. Official statistics show impressive performance with about 5 percent revenue growth p.a. between 2010 and 2014 and an average EBIT of 7 to 9 percent. This study, which was jointly conducted by the German Engineering Federation
10、(VDMA) and McKinsey & Company and is based on a survey of 215 European machinery companies, reveals an even brighter picture: the average respondent reports about 7 percent annual revenue growth for 2010 to 2014 and about 10 percent EBIT margin. European machinery companies are extremely successful
11、internationally holding a share of 26 percent of worldwide machinery production, followed by the US (around 14 percent) and only surpassed by China (around 38 percent). 3However, the business environment is changing: in a volatile macroeconomic market environment, the planning of future growth strat
12、egies is becoming more and more difficult. Digitization is increasingly casting doubt on the sustainability of traditional business models. Higher complexity of the offered products and solutions in combination with ever-shorter product cycles is imposing stronger pressure on returns and demands mor
13、e agility in production and product development. While traditional engineering capabilities retain their fundamental importance, shifting growth sources and digitization require new capabilities and talent. Locating qualified personnel is already a barrier to growth, and the war for talent is intens
14、ifying. More and more companies are asking themselves whether they have the right organizational setup to keep pace with these developments. Competitors, especially from China, are attacking the industry with competitive pricing and better time to market, while the US machinery industry picks up its
15、 pace with new and creative business models. In this context, it is crucial to identify not only the challenges but also the opportunities and to actively participate in changes. These strategically provocative and exploratory questions apply equally to every individual enterprise and to the industr
16、y as a whole (Exhibit 1): How can shifting growth patterns be captured both geographically and along the value chain (e.g., from products to services)? What impact will digitization have on industrial business models and operations? And how can companies design their own digitization strategies? How
17、 should enterprises adapt the inner workings of their organizations to address these opportunities and challenges? This publication intends to add insight to the ongoing discussion of how to shape the future of the European machinery industry. Chapter 1 gives an overview of the industry and introduc
18、es typical business model archetypes of companies. Chapter 2 analyzes the most important strategic themes for the coming years and the associated opportunities 2 E u r o s t a t 2 0 1 6 ( E U - 2 8 + S w i t z e r l a n d + N o r w a y , e x c l u d i n g t h e b u i l d i n g s e c t o r ) 3 V D M A A p r i l 2 0 1 6 , b a s e d o n n a ti o n a l s t a ti s ti c s , E u r o s t a t , U N , C M I F , a n d V D M A e s ti m a t e s , E U - 2 8
