Low growth expectations drive cost reduction
With lower-than-average expectations for global economic growth, more than 60 percent of metals respondents say they expect to further reduce their cost structure. But all indications suggest that today's consolidation and cost-reduction exercises will lead to a stronger and more resilient sector in the future.
Focus on enhancing supply chain visibility
A lack of visibility into the supply chain is impacting the sector's ability to respond to, and recover from, sudden supply chain disruptions. More than half of all metals respondents admitted to having either no visibility or limited Tier 1 supplier visibility, while two thirds said it would take them more than a week to assess the impact of a disruption.
Shifting markets create new opportunities
The continued slowdown in mature markets has led metals organizations to seek out new opportunities for growth:
- In emerging markets where a third of respondents said they expected sales growth to come from China; and
- Through the development of more sophisticated products, as 39 percent said they would increase R&D investments to more than 4 percent of revenues.
KPMG's Global Head of Metals