Achieving High Performance in the Industrial Equipment Industry

industrial equipment companies that now start to replicate some combination of the distinctive capabilities of high performance in this industry will quickly establish a lead over their competitors.

Summary

of the best performers in the huge industrial equipment marketplace are in the industrial and electrical sector, which supplies parts and components to the industry as a whole. Five such companies emerged from our analysis having consistently outperformed their competitors over a significant period of time in this fragmented and highly cyclical industry. Indeed, they have grown three times as fast as their peers over the last five years.

These five high-performance businesses do not simply source and manufacture in new and emerging markets—they leverage all aspects of these markets’ potential, often creating entirely new markets in the process. They do so in the service of global, highly flexible and remarkably efficient operating models that equip them to meet the specific needs of customers in every market they serve. Even more important: Their operating models drive the continuous improvement that generates the free cash flow needed to fuel growth and innovation.

Accenture’s research indicates that the lion’s share of future value in the industrial equipment industry will go to a select group of companies that take full advantage of new and emerging markets—going well beyond the realization of low-cost country sourcing opportunities. These high-performance businesses will have the capabilities, culture and leadership to take on the challenges of a global marketplace—and win.