Executive Insights

Investment Spotlight | May 25, 2017 | By: L.E.K. Consulting U.S. quarterly oil productivity* (2008-2017E) North American key shale players drilling break-even prices (2013-2016) Getting ready for a crude comeback

A confluence of factors, including rising global demand and recently announced production cutbacks by OPEC, is expected to provide a tailwind for the currently rebounding oil and gas industry. In this Investment Spotlight, we explain how the market’s current pace of recovery points to potentially attractive growth opportunities for well-positioned companies.

Volume XIX, Issue 33 | May 23, 2017 | By: Peter Ward, Diogo Silva Wealth and income profiles of the retired population Five building society strategies

In this Executive Insights, L.E.K. Partners Peter Ward and Diogo Silva set out the key challenges facing UK building societies, highlight five possible business models in the sector and provide a road map for strategic review as a foundation for future success.

Volume XIX, Issue 32 | May 16, 2017 | By: Thilo Henkes, Alan Lewis Worldwide digital printing market by packaging type (2016) Implications of digital printing on traditional packaging value chain players Worldwide digital printing market by packaging type (2010-20F)

Brand owners seeking successful marketing strategies in a highly competitive marketplace are increasingly turning to digital printing to produce innovative packaging designs. In this Executive Insights, L.E.K. Consulting looks at if, when and how digitally printed packaging could change the game across labels, cartons, flexible pouches and corrugated containers. Digital printing has the potential to transform the packaging industry, but it will be a marathon, not a sprint.

Volume XIX, Issue 31 | May 15, 2017 | By: Helen Chen China’s industrial gas market China’s industrial gas in the electronics end market Market dynamics of China’s industrial gas market for the electronics industry Examples of foreign industrial gas companies

Industrial gases have been dubbed the “blood of the industrials market” and play an important role in China’s national economy. However, given the current economic downturn, slowdown in growth and excess capacity reduction, investors may be hard-pressed to determine where new investment opportunities and growth prospects lie. In this Executive Insights, L.E.K. Consulting assesses investment opportunities in this market.

Volume XIX, Issue 30 | May 11, 2017 | By: Alan Lewis, Zafar Momin, Peter Smith Airline partnership continuum Example joint venture agreements and benefit-sharing mechanisms Number of joint ventures by airline (active and pending) Joint venture share of total traffic for flights over 3,000 miles

Airlines have long understood that trust is essential to their relationship with customers. Building trust between traditional competitors does not come naturally. The success of JVs depends on airlines’ ability to construct equitable and flexible partnership arrangements. This Executive Insights cites research and market examples to help airlines seeking to maximize the value of joint ventures.

Volume XIX, Issue 29 | May 10, 2017 | By: Diogo Silva Impact of new regulations on demand for regulatory and compliance services

The swath of regulation in the financial services industry, in particular following the global crisis of 2008-2009, has created significant business opportunities. Four business service categories in particular offer investment opportunities, especially for midmarket-focused investors. In this Executive Insights, L.E.K. London Partner Diogo Silva analyzes the dynamics of each of these categories to assist investors as they review the respective markets.

Volume XIX, Issue 28 | May 9, 2017 | By: Dan McKone, Alan Lewis Top 10 economic profit generators, by absolute dollars (2012-2016)

The global airline industry has long been criticized for its inability to earn sufficient returns. But in 2016, for the second consecutive year, the industry generated approximately $17 billion in economic profit (EP), down from the 2015 record of roughly $25 billion. Learn more in This Aviation Insights Review, which provides an update on the global airline industry.

Volume XIX, Issue 27 | May 8, 2017 | By: Manny Picciola, Rob Wilson, Maria Steingoltz Rising food and labor costs Retail prepared foods pose a growing threat to foodservice operators

For the past decade, foodservice sales have been on a tear, outpacing those of the retail sector. In fact, in 2015, foodservice revenues surpassed retail revenues for the first time, as more and more consumers, emerging from a painful recession, opted to dine out with greater frequency. But foot traffic has begun to slow, stabilizing at or below 1% growth. As a result, foodservice operators will need to look elsewhere in order to build revenue. In this Executive Insights, we discuss findings from the 2017 L.E.K. Consulting U.S. Foodservice Operators Study.

Volume XIX, Issue 26 | April 25, 2017 | By: Zafar Momin, Stephanie Newey Sales at risk from biologics patent expirations (2015-30F) Selected biologics for non-communicable diseases and estimate of addressable patients in Asia Estimated costs for biosimilar manufacturing Profiles of selected biosimilar manufacturers

While the biosimilars market is still in its early years, many industry watchers expect it to grow faster than all other pharma segments. In this Executive Insights, L.E.K. Consulting analyzes how the biosimilars industry could evolve in Asia, examining the industry growth drivers, enablers and challenges it will likely face and how industry players can ride the growth waves.

Volume XIX, Issue 25 | April 17, 2017 | By: Bill Frack, Kevin Grabenstatter U.S Surgical Cases Proportion of outpatient surgical cases performed in an ASC Ambulatory surgical centers ownership structure and growth

UnitedHealthcare’s recently announced acquisition of Surgical Care Affiliates (SCA) represents the latest signal that the $30 billion ambulatory surgery center (ASC) segment is moving to the forefront of the rapidly evolving healthcare market. In this Executive Insights, L.E.K. Consulting looks at the various factors favoring further share gains for these value-oriented care facilities.