Industrial Products publications

Assessing tax: 2012 tax rate benchmarking for industrial products and services companies
Due to increased scrutiny that tax executives face from both internal and external stakeholders and the challenge of generating greater value from their tax departments, tax rate benchmarking can serve as an effective tool to analyze tax ratios. It provides insight into sector trends and peer group comparisons while highlighting areas for improvement in planning and shaping the tax function.

Aerospace & Defense: 2011 year in review and 2012 forecast
The A&D year in review and 2012 forecast analyzes the path the aerospace and defense (A&D) industry took through the recent year and provides an outlook at this year's performance.

Quarterly M&A reports
Each quarter we provide an analysis of global merger and acquisition activity in the aerospace & defense, chemicals, engineering & construction, metals, transportation & logistics, and industrial manufacturing industries. Each edition includes a review of overall deal activity for the quarter and year-to-date and a summary of large deals. Also included is a spotlight on a PwC's service and a case study.

Building confidence: Subject matter specialists in government contracting enhance quality and reduce risk
Engineering and construction companies may find opportunities in purchasing contracts from federal, state or local governments. To achieve success in contracting with governments, companies must comply with regulations. Using construction subject matter professionals in government contracting can help to create a successful outcome to contracting with governments.

Manufacturing Barometer ™
PwC's Manufacturing Barometer is a quarterly survey of executives in large, US-based, multinational industrial manufacturing businesses. Survey findings compare the economic outlook in the US industrial manufacturing sector to that of the broader marketplace—the consensus view of all surveyed companies.

The accompanying charts and tables also provide contrasts of the manufacturing and non-manufacturing sectors. Captured are survey participants' assessments of the direction of the economy, their company's revenue growth trend, plans for major new investments, plans to add new workers, barriers to future growth, and much more.

Gaining altitude with PwC
Aerospace and defense executives should increase their value chain visibility, better manage demand variability and increase velocity to help improve profitability in today’s market. Being able to see what inventory is in the pipeline and manage it effectively and efficiently is a valuable means to managing the cost structure and schedule of any program.

Shale gas: A renaissance in US manufacturing?
A PwC analysis finds that full-scale and robust shale gas development through 2025 could yield a number of potential benefits for the industrial manufacturing, chemicals, and metals industries.

Engineering & Construction Accounting: The application of revenue recognition models in the engineering and construction industry
Engineering and construction companies have alternatives when applying construction contract standards, including a method to calculate percentage of completion (input or output methods) or recognizing revenue, costs of revenue and gross profit (Revenue or Gross Profit method).

New opportunities in China for the chemicals industry: What foreign investors need to know
Market demand in China is shifting from chemical commodities to specialty chemicals. Multinational chemical companies can take advantage of new business opportunities from the rising demand for specialty chemicals in China.

Aerospace Top 100 – Rebound to growth
The 14th annual edition of the Top 100, ranking Aerospace companies globally according to their financial results--as analysed by PwC. The report finds that 2010 was a year of buoyant rebound for Aerospace with industry revenue growth of 2% and profits up 16%.

Achieving excellence in production and supply
This is the latest installment in our "Manufacturing Excellence" series that identifies how the manufacturing sector can position itself for long term success by identifying and preventing supply chain risk, linking demand planning with the value chain, making customer and supplier collaboration real, and more.

Export control reforms: How will Aerospace & Defense operating in the global economy be impacted?
The Obama administration has called for a restructuring of the export control system that will impact aerospace and defense companies' compliance organizations and operations. A more transparent export control system could increase a company's ability to win work.

Under construction: Current financial reporting issues impacting the Engineering & Construction industry
An exposure draft released by the FASB and IASB proposes a reporting model that will have a significant impact on current revenue recognition under both US GAAP and IFRS, especially in several areas key to the E&C industry such as transfer of control, identification of performance obligations, determining the transaction price, accounting for warranties, and transition, among others.

A&D insights: Gaining technological advantage
Global aerospace & defense companies must innovate to maintain technological advantage. A&D leaders should leverage research & development and capitalize on technology advances to grow market share and stay competitive.

Customer collaboration designs excellence: How manufacturing companies are collaborating with customers to build relationships and revenue
Manufacturing companies are reaching across the supply chain to understand how consumers of their products impact their decision-making, which enable them to improve their own products and cut costs.

Spares forecasting: A commercial aviation perspective on value chain maturity and best practices
Commercial airlines and aerospace and defense companies need to develop usable demand forecast information to make the most of their inventory and manufacturing operations while accounting for predictable and unexpected maintenance. The information flow recommendations presented in this survey can be applied to reducing lead times on aircraft parts and turnaround times, spares reduction, and defining future demand for repairs and spares.

Aerospace & Defense maintenance, repair, and overhaul: revenue recognition and related issues
This PwC publication explores some of the challenges in financial reporting for MRO arrangements.

Aerospace & Defense year in review and 2011 forecast
The A&D year in review and 2011 forecast analyzes the path the aerospace and defense (A&D) industry took through the recent global recession and dares an outlook at this year's performance.

Examining IFRS for the airline, railroad, shipping and trucking industries
If US businesses are to succeed in the transition from US Generally Accepted Accounting Principles (GAAP) to International Financial Reporting Standards (IFRS), company executives should be thoughtful and measured in their approach. PwC's experience shows the transition can be complex for companies of all sizes, both domestic and international, and throughout business operations. To help provide insight, PwC is pleased to share with you four news reports that examine the impact and opportunities relating to IFRS for the airline, railroad, shipping and trucking industries.

Forging solutions: Examining international financial reporting standards for the US metals industry.
The United States is about to adopt a new accounting language. International Financial Reporting Standards (IFRS) will soon replace US generally accepted accounting principles (US GAAP), and global and domestic companies are now preparing for this significant implementation. Our experience shows the transition can be quite complex for metals companies, extending beyond finance and accounting functions to involve human resources, investor relations, business development, tax, treasury, and information technology.

To help provide insight on the impact and opportunities relating to IFRS, PwC is pleased to share with you a new report, Forging solutions: Examining international financial reporting standards for the US metals industry.

Achieving breakthrough maintenance, repair and overhaul performance
This PwC's publication and corresponding framework focus on enterprise resource planning solutions for achieving dramatic improvements in maintenance, report, and overhaul processes, data management, executive information and sustainable cost reduction.

Building toward the future: FASB/IASB revenue recognition exposure draft
This PwC white paper discusses the significant impact that the provisions of the proposed new revenue recognition model may have on engineering and construction companies, and includes practical examples on how the model will apply to situations that are common across the industry.

A&D insights: Accelerating global growth
Within the A&D industry, companies see globalization and its direct impact as the major driver of change in the industry, both now and in the coming decades. Similarly, they recognize that globalization will bring new competitors and new complexities in managing their businesses.

PwC interviewed 15 executives from leading A&D companies and organizations from around the world. The objective was to learn, first hand, more about the benefits and challenges of expanding into new international markets and the investments and decisions companies are making to overcome those challenges. This publication is the PwC's first edition of a new annual thought leadership report that is developed in collaboration with our clients through an interview process.

Navigating the move to IFRS for the US forest, paper and packaging industry
International Financial Reporting Standards (IFRS) will likely be adopted in the US in the near future. This is a change that will impact global and domestic companies alike and will see the elimination of US Generally Accepted Accounting Principles (US GAAP) for public companies.

This paper discusses the impact on the forest, paper and packaging (FPP) industry. Adoption may be a smooth transition for some companies, but our experience shows it's likely to be complex for most. A successful transition to IFRS extends far beyond finance and accounting functions, involving departments such as human resources, investor relations, business development, tax, treasury and information technology (IT).

Distilling IFRS for the chemicals industry
International Financial Reporting Standards (IFRS) will likely be adopted in the US in the near future. This is a change that will impact global and domestic companies alike and will see the elimination of US Generally Accepted Accounting Principles (US GAAP) for public companies.

This paper discusses the impact on the chemicals industry. Adoption may be a smooth transition for some companies, but our experience shows it's likely to be complex for most. A successful transition to IFRS extends far beyond finance and accounting functions, involving departments such as human resources, investor relations, business development, tax, treasury and information technology (IT).

How to fortify your supply chain through collaborative risk management
This PwC white paper represents new analysis on how aerospace and defense companies can work with their global partners to effectively and collaboratively manage supply chain risks. Insight was gained through various interviews with senior management in the aerospace and defense industry, as well as with cross-industry thought leaders. Findings were also based on in-house research on multi-tiered contractors’ financial performance, inventory turnover, and employee growth.

How your company can prepare to manage carbon as an asset
Cap-and-trade systems already impact US companies, but many financial questions remain unanswered. To take advantage of the regulatory framework to control greenhouse gasses, companies must recognize that a new discipline is required and new rules are forming. What this means for businesses is that the myriad laws and regulations to address emissions add up to the need for a coordinated, strategic response.

This paper describes what is currently setting the stage for a comprehensive system of carbon trading in the United States, how a federal greenhouse gas cap-and-trade program might work in the United States, the status from the accounting standards-setting boards on emissions trading systems, and common questions about carbon emissions trading.

What new accounting standards will mean for the aerospace and defense industry
To keep pace with them, companies need to start preparing now. Due to the specialized nature of US GAAP guidance for A&D companies, there may be complex considerations in successfully implementing converged standards and ultimately transitioning to IFRS.

Driving performance effectiveness in the finance and tax functions
This PwC paper identifies common impediments, processes, and synergies among the finance and tax functions. A focus on the critical interdependencies between key roles and processes, from a data, technology, people and workflow perspective, will allow for a more holistic view than has historically been taken. Because much of the same data is used by both functions, companies can create significant value by applying the same finance transformation approaches to challenges within the tax function.

Engineering change: Constructive thinking for the construction industry
International Financial Reporting Standards (IFRS) is likely to be adopted in the US in the near future. This is a change that will impact global and domestic companies alike and will see the elimination of US Generally Accepted Accounting Principles (US GAAP) for public companies

This paper discusses the impact on the engineering and construction sector. Adoption may be a smooth transition for some companies, but our experience shows it's likely to be complex for most. A successful transition to IFRS extends far beyond finance and accounting functions, involving departments such as human resources, investor relations, business development, tax, treasury and information technology (IT).

Navigation: Managing commodity risk through market uncertainty,
Commodity price volatility not only threatens the survival of individual companies, but also puts entire markets and industries at risk. According to a PwC's survey of leading manufacturers, 86% of senior executives said commodity price risk is important to a company's financial performance, adding that commodity risk was not managed well during the past two years.

Unraveling new business combination standards
In late 2007, the Financial Accounting Standards Board (FASB) issued two new accounting standards to make company information on mergers and acquisitions (M&A) activity more relevant to stakeholders.

This paper discusses how these new accounting standards affect M&A deals and financial reporting, such as resulting in lower bonding amounts, reduced lending from financial institutions, and diminished bidding capacity for construction contractors already facing a difficult credit and surety environment. Well-capitalized construction companies looking for strategic opportunities in today’s economy also need to consider changes in how M&A are reported as they negotiate deals to expand, acquire weakened competitors or enter into joint venture agreements.