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Industrial manufacturing CEOs top three strategies for growth include geographic expansion (29 percent), better penetration of existing markets (27 percent) and new product development (19 percent).
CEOs are looking for deal-making opportunities
Despite the economic downturn, many industrial manufacturing CEOs are likewise looking for suitable deal-making opportunities.
In-depth CEO story
 Jorma Eloranta
President and CEO, Metso Corporation, Finland
Technological innovation supported by collaboration remains a priority
Technological innovation is critical to the industry manufacturing industry. As many industrial manufacturing companies are forced to scale back on R&D investment, management will have to look for creative ways to support innovation. CEOs said that they are already collaboration with supply chain partners as well as with customers and clients. Expanding such partnerships to include new product development and other kinds of innovation may provide one way of solving the problem.
Pressure on natural resources will intensify
Seventy percent of industrial manufacturing CEOs believe that the pressure on natural resources will intensify. Between 35 percent and 44 percent are also worried about the commercial impact of systemic risks such as scarcity of fresh water, spread of infectious diseases, climate change, demographic shift and the planetary toll inflicted by overpopulation. Some of these challenges may also provide new business opportunities.
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Less concern about talent shortages in the short term
The economic downturn has helped to push the people factor lower down on the boardroom agenda. Only 47 percent of industrial manufacturing CEOs are somewhat or very concerned about the shortage of talent, compared with 62 percent last year. People issues will be crucial over the long-term. Industry manufacturing CEOs are more likely to see the demographic time bomb as a threat to the long-term growth of their companies.
Looking forward
Industrial manufacturing CEOs will have to ensure that they do not focus on short-term risks to the exclusion of long-term risks like climate change, shrinking natural resources and the impact of demographic shifts on the talent pool.
Related research from PricewaterhouseCoopers
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