Global manufacturing companies operate in a dynamic and fast moving environment working hard to keep pace with changing consumer demands, due to global socioeconomic factors, such as globalization, population growth and emerging market dynamics.
When it comes to making investments in production and other built facilities, industrial manufacturing executives are most challenged by constraints on funding, the lack of available talent and increasing production costs, according to Arcadis’ recent Industrial Capital Expenditure Survey.
The Industrial Capital Expenditure Survey report reveals seven key themes and trends that best-in-class manufacturers must navigate to meet the affordability challenge and maximize the value of built assets delivered, in the midst of a transforming supply chain. We’ve also captured insights into the latest trends in built asset capital project and program delivery across the industrial manufacturing sectors.
Seven Key Themes
SPOTLIGHT ON PHARMACEUTICALS
In the Pharmaceuticals industry, a progressive approach is particularly important to enable organizations to build their internal capability across a range of dimensions including process, governance, data and team performance. High volume markets continue to be commoditized with intense price competition. This competition places continuous pressure on internal costs, including property functions. This need for agility and speed to market places a greater premium on the ability of the property function to drive targeted investment in complex operational sites. Data from the Industrial Capital Expenditure Survey indicates ‘performance’ is particularly low in the pharmaceutical sector, where a mere 29% of companies rated their speed to market as ‘good’ and nearly half were unsure of their speed to market performance. This ﬁnding is expected, given the laser-sharp focus of pharmaceutical companies on speed to market following patent approval, and it is possible that the success criteria for performance for pharmaceuticals is even higher than in other industry sectors. Companies in the pharmaceutical industry can enhance operations significantly, by focusing on asset performance, ﬂexibility and agility.
A lack of supply chain integration can lead to serious problems
However, with constraints on available funds ranking as the top challenge to capital projects, it is crucial that companies learn from peers and take best practice from other sectors. The seven key research trends and themes highlight clear areas for improvement in capital planning and delivery in the industrial sectors. As industrial change and innovations come in quicker, companies must ensure they are in the leading percentiles of their sector to remain competitive or they risk losing out on sales or end-user loyalty.
Read our report to learn about our seven-step route to success for manufacturers to improve their capital delivery and gain a competitive advantage.
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