L.E.K. Consulting advises leading companies across the diverse industrial sector, with more than 3,000 projects completed around the world addressing a broad range of management challenges. Our clients include manufacturers, suppliers, distributors, service companies, industrial conglomerates and private equity investors.
We have developed extensive knowledge of the commercial and operational dynamics of industrial companies. Our expertise spans the sector’s value chain, including sourcing, supply chain, manufacturing, product development, sales and distribution. We combine our industry knowledge with a rigorous analytical approach to provide senior executives with the strategic guidance they need to achieve genuine competitive advantage.
Key questions and challenges
Our experienced professionals have a deep understanding of key issues faced by our clients, for example:
- What markets should be my key growth drivers? How should I enter them and how do I win?
- Which distribution business model is right for my organization (e.g., regional focus, product/industrial segment focus, service leadership)?
- What is the current and future role of ecommerce in my market, and how can I best take advantage of the opportunities or mitigate the threats it presents?
- How do I analyze the threat and opportunities from low-cost countries and substitutes?
- What is the best strategic response to these threats and opportunities?
- What is the right pricing and product strategy to help reduce SKU complexity and increase profitability?
- What are the potential impacts of disruptive technologies (e.g., Internet of Things, 3-D printing) on my market, and how can I strategically position my company to benefit from them?
Examples of our work
We are committed to providing our clients with insightful, meaningful and actionable results. We back up our recommendations with rigorous analysis and have a highly collaborative work style. Read the stories below to learn how we’ve helped clients realize their objectives:
- Industrial IoT market screen: Our client, a provider of low-power wide-area network (LPWAN) with long range (LoRA) modulation, was seeking to identify impactful ways to grow the business in the near term. We were asked to evaluate which industries and applications are most applicable to their network and how each could be prioritized and pursued for near-term growth. We developed a strategic plan that identified new addressable end markets within IoT representing $500 million in opportunity that would be most applicable to our client’s LPWAN network solution.
- Robotics growth strategy: A leading U.S. designer and builder of custom automated equipment was seeking to develop a strategic growth plan for how to enter new markets and grow its existing area of focus. L.E.K. identified and evaluated new end markets and new geographies (across the U.S., Europe and China) and helped management evaluate and prioritize those that represented the most attractive opportunities for growth. After agreeing on which opportunities should be prioritized, we developed a strategic road map for how the client would be successful in each new opportunity, including the identification of high-priority potential acquisition targets.
- Due diligence on commercial food equipment: A global diversified manufacturer was looking to make an investment in the U.S. commercial food preparation equipment market. L.E.K. assessed the demand outlook for the equipment manufactured by the target, evaluated the competitive positioning of the target and determined whether any disruptive technologies could limit the ability for the target to grow in the future.
- Joint venture assessment and synergy planning: Our client, a leading global manufacturer of gas turbines, was in discussions with another OEM for a possible joint venture. As part of the valuation model of the deal, the client sought to validate the benefits from the joint venture. We were asked to identify and validate the synergies of the proposed deal by examining the operational efficiency gains through the reduction of headcount, the savings from consolidating the manufacturing footprint into a single global site, and the savings from optimizing the number of packaging sites. We found cost synergies that were 20% higher than the original estimate and revenue synergies that were 190% above the original client estimates.
- Business plan development: A leading global equipment manufacturer was in negotiations with another OEM for a potential partnership in the U.S. oil and gas end market. To evaluate whether the partnership was in the best interest of the company, L.E.K. was asked to develop suitable alternative partnerships and provide an evaluation of the benefits and disbenefits that could arrive for both parties based on the alternative options available. This allowed the client to develop a shared vision for the partnership that formed the basis of the formal business plan.
- Strategic segmentation: One of the world’s largest producers of welding equipment, consumables and automation equipment asked L.E.K. to review the industry structure and growth outlook of the welding automation industry to determine if the business was appropriately positioned for strategic growth. Through a detailed review of the use of welding automation equipment by end market, geography and technology type, we were able to identify the attractive segments of the market in which the client was over- and under-indexed.