The engineering industry is indispensible for the support of industries in defense, automobile, steel, power, infrastructure, mining, refineries etc. It has always been a focus area for the industrial development of a country. Investment in this industry is also facilitated by Government as it is essential to maintain the industrial growth in the economy. With the changes in nature of markets where industrial activity is growing vigorously, companies are forced to devise new strategies to counter low-cost competition and cyclic changes in demand.
Key trends shaping the industry:
Higher demand in emerging economies: Growth of the industrial sectors especially in emerging economies is pushing up the demand for the products from engineering services. It will remain one of the most important areas in economic development in the coming decades.
Globalization and expansion: Access to foreign markets has given way for companies to grow their market segments. This expansion across geographies is led by expansion through large manufacturing investments or M&A activities.
Challenges facing the players involved in the industry:
Infrastructure development: Huge opportunities presented by this sector are constrained with large capital investment needed for capacity addition. This makes it important to have an estimate on the future demand.
Technological capabilities: Research and development consists of an important part of this industry. It is essential for a company to keep investing in technological improvements so as to stay at par with the competition and maintain its profitability.
Optimize operations: Growth in this industry requires efficient utilization of resources and keeping its cost levels to minimum. Continuous improvement in efficiency helps in maintaining profitability for a longer period.
How BMGI can help?
BMGI has worked with leading organizations in the heavy engineering field. BMGI’s engagements include Business Process management, Project management, Performance management , Business transformation among others. We create client engagements specific to the needs of each client which has helped us to consistently deliver excellent results.
To know more about our Engineering Industry Practices , Give Us a Call