Executives in the industrial equipment sector face many critical and strategic questions in 2015. Here, L.E.K. Consulting shares its views on the state of the industry, including key challenges and opportunities for industrial equipment companies.
What Is the Current State of the U.S. Industrial Equipment Industry?
With the U.S. industrial equipment industry in a state of flux, multiple market forces and shifting business landscapes are keeping senior executives on their toes. For some end-market companies, margins are under pressure from falling commodity prices, yet these same price declines are a windfall for downstream consumers. Regulatory activity is also on the rise, with an increasing focus on air and water quality, which is creating both new opportunities and challenges for industrial players. Furthermore, the revolution in networking and connectivity is ushering in the Industrial Internet of Things (IIoT), expanding the playing field to new areas for growth and competitiveness, and exposing potentially critical gaps in the capabilities of industrial equipment companies. Meanwhile, competitors are growing aggressively through M&A, spinning off non-core businesses to better serve their core markets, and extending into new parts of the value chain as the profit pools shift in response to market trends and forces.
Download the full Executive Insights' "State of the Industry" report to read more about the current state of the industry and burning issues that senior executives are facing: Full Report.