H&Z
H&Z Management Consulting - Consulting with head, heart and hand
04/11/2024

Engineered Products: Insights from our Pulse-Check H2/2024

In a highly volatile market, the latest H&Z Pulse Check offers essential insights for leaders in engineered products, emphasizing flexibility and cash-flow optimization. Covering cost-saving, digital transformation, and circular economy strategies, the report provides actionable steps for resilience and sustainable growth.

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Here are our 5 Key Insights in H2/2024:

 

  • Market Variability: The engineered products sector is experiencing significant variance, with slightly lower but still high order volatility. To effectively manage this, flexible, scalable operations and targeted cash flow optimization – like Net Working Capital (NWC) – are essential

 

  • Cost Management in Focus: Over the next few months, companies are prioritizing cost-saving over strategic investments, reflecting a cautious market sentiment. This focus on immediate profitability means investments in sustainability and product digitization are currently on hold

 

  • Key Cost Drivers: Raw material costs remain a major expense, while SG&A (Selling, General, and Administrative) costs are on the rise. Effective strategies in procurement and operational excellence are vital for reducing these expenses and improving EBIT margins

 

  • Digital Transformation Trends: Automation and Generative AI are high on the agenda for decision-makers. Simultaneously, circular economy approaches offer potential long-term cost advantages and resilience in supply chains while not yet on the agenda of decision-makers

 

  • Progress in Circular Economy Initiatives: An increasing number of companies are implementing circular economy strategies, though many remain in the planning phase. This highlights a need for broader management understanding of benefits to drive these strategies forward

Download the latest Pulse Check now!

Want to learn more about the Engineered Product Pulse Check 2024?

If you would like to discuss any aspect of our work and how we could help you, please send us a message, we will answer it immediately.

Sandra Stoll

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Sandra Stoll

Christoph Tertel

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Christoph Tertel

Tobias Kanski

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Tobias Kanski