The Industrial Products Outlook series provides commentary and insights into issues that the manufacturing sector in Australia is facing. Each Outlook includes commentary from a industry expert on their direct experience.
This edition explores the Australian mergers and acquisitions (M&A) outlook and incorporates Producing value*: Global Industrial Manufacturing mergers and acquisitions analysis, 2005-2007, which examines the top 10 transactions and the spread of deals worldwide, and highlights trends including private equity investment. We also provide a PwC perspective on the sector’s prospects to guide CEOs considering M&A activity.
The climate change agenda is moving quickly in Australia. With just under two years until carbon trading begins, industrial products companies have work to do. They must act with urgency to assess the risks they face and set up robust systems to manage their carbon costs.
Now more than ever, industrial products companies need to improve how they do business. Corporate management performance (CPM) is an operating philosophy that makes companies more effective; yet our research shows that Australian companies have been slow to embrace this discipline.
Private equity is here to stay. Private equity is on the rise in the industrial products sector. The rapid emergence of powerful new private equity-backed industry players with disciplined performance improvement plans could surprise and quickly marginalise the unprepared.
Change has become the constant – and it must be embraced. Companies need to invest in technology and invest in people who are prepared to innovate and who are prepared to take a punt. The future of Australian manufacturing is at stake.
After a prolonged period of underinvestment, Australian manufacturers need to revisit their IT strategy and make new IT investments that maximise performance and deliver real business benefits.
Offshore Sourcing: Lands of Opportunities looks at offshore sourcing and strategy in the manufacturing sector. Manufacturing has evolved from local beginnings and the forces at play have thrust all companies upon the global stage. Companies must participate or risk being left behind.
