INDUSTRIAL CAPITAL EXPENDITURE SURVEY 2017 … · INDUSTRIAL CAPITAL EXPENDITURE SURVEY 2017 ......
13
INDUSTRIAL CAPITAL EXPENDITURE SURVEY 2017 INVESTING AND BUILDING IN CHANGING MANUFACTURING MARKETS
Transcript of INDUSTRIAL CAPITAL EXPENDITURE SURVEY 2017 … · INDUSTRIAL CAPITAL EXPENDITURE SURVEY 2017 ......
INDUSTRIAL CAPITAL EXPENDITURE SURVEY 2017INVESTING AND BUILDING IN CHANGING MANUFACTURING MARKETS
CON
TEN
TS1
. F
ore
wo
rd
2.
Ex
ecu
tiv
e s
um
ma
ry
3.
Re
sea
rch
ov
erv
iew
3
.1 In
tro
du
cti
on
to
th
e r
ese
arc
h
3
.2 In
du
stry
ou
tlo
ok
4.
Se
ve
n k
ey
th
em
es
an
d t
ren
ds
4
.1 B
ett
er
retu
rns
an
d im
pro
ve
d s
pe
ed
to
ma
rke
t
4
.2 F
lexib
ility
an
d a
gili
ty
4
.3 S
ust
ain
ab
ility
in c
ap
ita
l p
rog
ram
s
4
.4 S
up
plie
r in
teg
rati
on
an
d c
om
mu
nic
ati
on
4
.5 In
tern
al st
ake
ho
lde
r e
ng
ag
em
en
t
4
.6 C
en
tra
lizati
on
4
.7 T
he
wa
r fo
r ta
len
t
5.
Arc
ad
is S
ev
en
Ste
p M
od
el
- th
e r
ou
te t
o s
ucce
ss
6.
Co
nclu
sio
n
7.
Me
tho
do
log
y
8.
Fu
rth
er
rea
din
g
9.
Co
nta
ct
us
1. F
ORE
WO
RDIt
is m
y pl
easu
re to
intr
oduc
e th
e A
rcad
is In
dust
rial C
apita
l Exp
endi
ture
Su
rvey
201
7 - I
nves
ting
and
build
ing
in
chan
ging
man
ufac
turin
g m
arke
ts.
Wit
h In
du
stry
4.0
ad
va
ncin
g a
s a
ca
taly
st f
or
ch
an
ge
fo
r
tod
ay
’s m
an
ufa
ctu
rin
g in
du
stry
, ch
an
ge
s in
th
is a
lre
ad
y
dy
na
mic
an
d f
ast
mo
vin
g e
nv
iro
nm
en
t a
re e
xp
ec
ted
to
be
mo
re e
xte
nsi
ve
an
d r
ap
id t
ha
n e
ve
r b
efo
re.
Th
is c
om
es
at
a t
ime
wh
en
glo
ba
l m
an
ufa
ctu
rers
are
alr
ea
dy
wo
rkin
g h
ard
to
ke
ep
pa
ce w
ith
fa
st c
ha
ng
ing
con
sum
er
de
ma
nd
s, d
ue
to
glo
ba
l so
cio
eco
no
mic
fac
tors
, su
ch
as
glo
ba
liza
tio
n, p
op
ula
tio
n g
row
th a
nd
em
erg
ing
ma
rke
t d
yn
am
ics,
to
na
me
bu
t a
fe
w.
Wh
eth
er
it b
e c
ha
ng
es
in t
he
la
bo
r fo
rce
, ne
w
tech
no
log
y a
nd
sy
ste
ms,
dig
itiz
ati
on
, or
rob
oti
cs,
th
e
ne
ed
to
incre
ase
effi
cie
nc
y a
nd
re
du
ce c
ost
s, w
hile
imp
rov
ing
sp
ee
d o
f g
ett
ing
pro
du
cts
to
ma
rke
t, is
of
pa
ram
ou
nt
imp
ort
an
ce.
De
spit
e lim
ite
d c
ap
ita
l, m
an
ufa
ctu
rers
mu
st in
ve
st
in b
uild
ing
an
d u
pg
rad
ing
bu
ilt a
sse
ts a
nd
fa
cilit
ies
to
me
et
ch
an
gin
g d
em
an
ds.
An
d w
ith
th
e n
ew
sp
ee
d
of
bu
sin
ess
an
aly
tics
an
d in
sig
ht
into
re
spo
nd
ing
to
ma
rke
t, t
he
se f
acilit
ies
are
ex
pe
cte
d t
o b
e b
uilt
qu
icke
r,
wit
h m
ore
fle
xib
ilit
y, a
nd
at
less
co
st.
At
the
sa
me
tim
e, I
nd
ust
ry 4
.0 c
on
tin
ue
s a
t p
ace
, in
wh
ich
en
d-t
o-e
nd
ma
nu
fac
turi
ng
va
lue
ch
ain
s a
re
be
com
ing
se
am
less
ly c
on
ne
cte
d, u
nd
erp
inn
ed
by
furt
he
r d
igit
iza
tio
n, t
ech
nic
al a
dv
an
ces
in b
ig d
ata
an
d
da
ta a
na
lyti
cs,
th
e In
tern
et
of
Th
ing
s, r
ob
oti
cs,
art
ificia
l
inte
llig
en
ce a
nd
dri
ve
n b
y t
he
ex
po
ne
nti
al g
row
th o
f
com
pu
tati
on
al p
ow
er
an
d a
va
ila
ble
info
rma
tio
n. W
e a
re
wit
ne
ssin
g t
he
wo
rld
mo
vin
g t
ow
ard
s m
ore
on
-de
ma
nd
pro
cess
es,
en
ab
led
by
te
ch
no
log
ies
such
as
ad
dit
ive
ma
nu
fac
turi
ng
an
d r
ea
l ti
me
big
da
ta p
roce
ssin
g.
Th
is a
ll r
eq
uir
es
‘Sm
art
Ass
ets
’, th
at
no
t o
nly
su
pp
ort
an
d d
rive
, bu
t a
lso
eff
ec
tive
ly im
pro
ve
bu
sin
ess
pe
rfo
rma
nce
.
Fle
xib
ilit
y a
nd
re
silie
nce
in b
uilt
ass
et
po
rtfo
lio
s a
nd
ove
rall
va
lue
ch
ain
s a
re k
ey,
as
is t
he
ne
ed
to
en
sure
resp
on
sib
le u
se o
f n
atu
ral re
sou
rce
s a
nd
sa
fe a
nd
sust
ain
ab
le o
pe
rati
on
of
ass
ets
, in
lin
e w
ith
co
rpo
rate
bra
nd
va
lue
s.
Th
is h
as
a f
un
da
me
nta
l im
pa
ct
on
th
e w
ay
ma
nu
fac
ture
rs d
esi
gn
, cre
ate
, op
era
te a
nd
eve
ntu
ally
re-p
urp
ose
th
eir
bu
ilt a
sse
t p
ort
folio
s, w
he
the
r it
be
th
e
ma
nu
fac
turi
ng
pla
nt,
th
e R
ese
arc
h a
nd
De
ve
lop
me
nt
cen
tre
, or
the
infr
ast
ruc
ture
th
at
sup
po
rts
it.
Re
ach
ing
ou
t to
ove
r 7
0 le
ad
ing
ind
ust
ry e
xp
ert
s in
ma
nu
fac
turi
ng
acro
ss t
he
wo
rld
, ou
r re
po
rt p
rov
ide
s
insi
gh
t in
to t
he
la
test
tre
nd
s in
bu
ilt a
sse
t ca
pit
al
pro
jec
t a
nd
pro
gra
m d
elive
ry a
cro
ss t
he
ind
ust
ria
l
ma
nu
fac
turi
ng
se
cto
rs. I
t a
sse
sse
s co
mp
an
ies
an
d
sec
tors
to
se
e h
ow
re
ad
y t
he
y p
erc
eiv
e t
he
mse
lve
s to
be
to
re
spo
nd
to
to
da
y’s
ch
all
en
ge
s b
rou
gh
t b
y In
du
stry
4.0
. It
als
o p
rov
ide
s a
se
ve
n-s
tep
ro
ute
to
su
cce
ss f
or
ma
nu
fac
ture
rs t
o im
pro
ve
th
eir
ca
pit
al d
elive
ry a
nd
ga
in a
co
mp
eti
tive
ad
va
nta
ge
.
Ou
r fi
nd
ing
s p
rese
nt
an
ove
rall
pic
ture
of
pra
gm
ati
c
op
tim
ism
, wit
h m
an
ufa
ctu
rers
co
nfi
de
nt
in t
he
va
lue
the
ir c
ap
ita
l in
ve
stm
en
ts in
bu
ilt a
sse
ts b
rin
g t
o t
he
ir
wid
er
bu
sin
ess
. Ho
we
ve
r, w
ith
co
nst
rain
ts o
n a
va
ila
ble
fun
ds
ran
kin
g a
s th
e t
op
ch
all
en
ge
to
ca
pit
al p
roje
cts
, it
is c
rucia
l th
at
com
pa
nie
s le
arn
fro
m p
ee
rs a
nd
ta
ke b
est
pra
cti
ce f
rom
oth
er
sec
tors
, to
me
et
the
aff
ord
ab
ilit
y
ch
all
en
ge
an
d m
ax
imiz
e t
he
va
lue
of
bu
ilt a
sse
ts
de
live
red
, in
th
e m
idst
of
a t
ran
sfo
rmin
g s
up
ply
ch
ain
.
I h
op
e y
ou
fin
d t
he
re
po
rt a
s in
form
ati
ve
an
d e
ng
ag
ing
as
ou
r e
xp
eri
en
ce w
as
in p
rod
ucin
g it
. Am
idst
th
e
cu
rre
nt,
ra
pid
ch
an
ge
s in
th
e m
an
ufa
ctu
rin
g in
du
stri
es,
it is
gre
at
to s
ee
ho
w w
e a
ll c
an
lea
rn f
rom
ou
r v
iew
s
on
th
e c
ha
lle
ng
es
at
ha
nd
, no
tin
g s
imila
riti
es
an
d
diff
ere
nce
s fr
om
va
rio
us
pe
rsp
ec
tive
s. I w
ou
ld lik
e t
o
tha
nk t
he
ind
ust
ry le
ad
ers
wh
o s
ha
red
th
eir
insi
gh
ts
an
d c
on
trib
ute
d t
o t
his
re
sea
rch
, an
d Ip
sos
MO
RI fo
r
the
ir in
sig
htf
ul re
sea
rch
pro
gra
m.
Tje
rk v
an
de
r M
ee
r
Glo
bal S
ecto
r Lea
der
Indu
stria
ls, C
ongl
omer
ates
& C
onsu
mer
Goo
ds
“Ip
sos
wa
s d
eli
gh
ted
to
wo
rk w
ith
Arc
ad
is t
o
co
nd
uc
t a
pio
ne
eri
ng
ex
plo
rati
on
of
the
tre
nd
s
in c
ap
ita
l p
lan
nin
g a
nd
de
liv
ery
in
in
du
str
ial
ma
nu
fac
turi
ng
ma
rke
ts. A
s p
art
of
a c
ross
-se
cto
r,
glo
ba
l e
xp
lora
tio
n o
f th
ese
im
po
rta
nt
issu
es, w
e
sp
ok
e w
ith
se
nio
r e
xe
cu
tiv
es
fro
m w
orl
d-l
ea
din
g
ma
nu
fac
ture
rs f
ac
ing
th
e im
pe
rati
ve
of
sp
en
din
g
sig
nifi
ca
nt
ca
pit
al
bu
dg
ets
in
a w
orl
d o
f sh
ort
en
ing
tim
e h
ori
zo
ns
an
d o
ng
oin
g t
ec
hn
olo
gy
dis
rup
tio
n.
Th
is a
pp
roa
ch
ha
s e
na
ble
d A
rca
dis
to
pro
vid
e a
de
tail
ed
pic
ture
of
the
be
ha
vio
rs a
nd
att
itu
de
s o
f
a d
ive
rse
mix
of
co
mp
an
ies, id
en
tify
ing
co
mm
on
the
me
s, tr
en
ds
an
d b
en
ch
ma
rks, a
s m
an
ufa
ctu
rers
see
k t
o m
ee
t th
e c
om
me
rcia
l a
nd
op
era
tio
na
l
pre
ssu
res
in a
ra
pid
ly c
ha
ng
ing
ma
rke
t.”
Ma
tth
ew
Ch
att
ert
on
,
Hea
d of
Bus
ines
s Res
earc
h, Ip
sos M
ORI
2. E
XEC
UTI
VE
SUM
MA
RYIn
a re
volu
tioni
zing
indu
stria
l lan
dsca
pe, it
is e
vide
nt th
at m
any
man
ufac
ture
rs a
re
look
ing
to e
mbe
d th
eir b
uilt
asse
t cap
ital p
rogr
ams i
nto
thei
r cor
e va
lue
chai
n of
de
liver
ing
prod
uct t
o m
arke
t.
Wo
rkin
g w
ith
wo
rld
lea
din
g c
om
pa
nie
s a
cro
ss
a w
ide
ra
ng
e o
f in
du
stri
al se
cto
rs, A
rca
dis
is in
a
un
iqu
e p
osi
tio
n t
o s
ha
re o
ur
reco
rd o
f b
est
pra
cti
ce
me
tho
do
log
ies.
In t
his
re
po
rt, w
e p
oo
l th
at
kn
ow
led
ge
to
pro
vid
e
insi
gh
t in
to h
ow
th
e in
du
stri
al se
cto
rs, a
s a
wh
ole
,
are
pla
nn
ing
an
d d
elive
rin
g b
uilt
ass
ets
aro
un
d t
his
ch
an
gin
g la
nd
sca
pe
- a
nd
ho
w in
div
idu
al co
mp
an
ies
are
pe
rfo
rmin
g in
th
e c
on
tex
t o
f th
eir
pe
ers
.
Pa
rtn
eri
ng
wit
h Ip
sos
MO
RI, t
his
ne
w r
ese
arc
h s
ha
res
ho
w b
uilt
ass
et
ca
pit
al p
rog
ram
s a
re b
ein
g p
lan
ne
d,
de
live
red
an
d m
an
ag
ed
acro
ss t
he
ind
ust
ria
l
ma
nu
fac
turi
ng
se
cto
rs.
Ou
r fi
nd
ing
s d
ep
ict
a p
osi
tive
ou
tlo
ok a
cro
ss t
he
ind
ust
ria
l se
cto
rs, i
n w
hic
h c
ap
ita
l p
rog
ram
s a
re c
lea
rly
vie
we
d a
s si
gn
ifica
nt
dri
ve
rs o
f v
alu
e f
or
bu
sin
ess
es
as
a w
ho
le.
Hig
hlig
hti
ng
wh
ich
se
cto
rs a
re a
do
pti
ng
be
st p
rac
tice
,
the
re
po
rt r
eve
als
se
ve
n k
ey
th
em
es
an
d t
ren
ds,
wh
ich
be
st-i
n-c
lass
ma
nu
fac
ture
rs m
ust
na
vig
ate
to
be
be
tte
r
ab
le t
o d
elive
r to
fu
ture
ma
rke
t d
em
an
d:
A s
um
ma
ry o
f th
e s
ev
en
ke
y t
he
me
s a
nd
tre
nd
s:
1 B
ett
er
retu
rns
an
d im
pro
ve
d s
pe
ed
to
ma
rke
t:
A h
ea
lth
y 8
8%
of
com
pa
nie
s a
re c
on
fid
en
t th
at
the
y c
an
de
mo
nst
rate
th
e v
alu
e t
ha
t th
eir
ca
pit
al
inve
stm
en
t p
roje
cts
bri
ng
to
th
e w
ide
r b
usi
ne
ss.
Ho
we
ve
r, o
nly
on
e in
fo
ur
com
pa
nie
s a
do
pt
be
st
pra
cti
ce a
nd
be
nch
ma
rk a
ga
inst
pe
ers
an
d o
nly
on
e in
five
be
nch
ma
rk c
ross
-se
cto
r. T
his
ra
ise
s
the
qu
est
ion
of
wh
eth
er
the
re is
op
po
rtu
nit
y t
o
imp
rove
co
nfi
de
nce
in c
om
pe
titi
ve
pe
rfo
rma
nce
by
con
du
cti
ng
be
nch
ma
rkin
g b
oth
wit
hin
th
eir
ind
ust
ry
an
d in
oth
er
sec
tors
.
2 F
lex
ibil
ity
an
d a
gil
ity
: W
ith
incre
ase
d fl
ex
ible
ma
nu
fac
turi
ng
re
qu
irin
g a
gile
fa
cilit
ies,
a m
ere
52
%
of
com
pa
nie
s b
elie
ve
th
at
the
ir p
ort
folio
of
facilit
ies
is fl
ex
ible
en
ou
gh
to
me
et
the
ch
all
en
ge
s fa
cin
g
the
ir b
usi
ne
ss. T
his
is d
esp
ite
60
% o
f co
mp
an
ies
ha
vin
g a
mu
lti-
ye
ar
inve
stm
en
t p
lan
in p
lace
, wh
ich
wa
s p
osi
tive
ly lin
ked
to
hig
he
r co
nfi
de
nce
in t
he
fle
xib
ilit
y o
f a
sse
ts. T
his
la
ck o
f fl
ex
ibilit
y s
ug
ge
sts
a
fun
da
me
nta
l ri
sk f
or
the
ind
ust
ry in
bo
th r
em
ain
ing
com
pe
titi
ve
an
d g
ett
ing
pro
du
ct
to m
ark
et
on
tim
e.
3 S
ust
ain
ab
ilit
y in
ca
pit
al
pro
gra
ms:
Six
in t
en
glo
ba
l
com
pa
nie
s ra
ted
re
du
cin
g e
nv
iro
nm
en
tal fo
otp
rin
t
as
sig
nifi
ca
nt
in h
ow
th
ey
ap
pro
ach
ma
jor
ca
pit
al
inve
stm
en
t p
roje
cts
. Me
an
wh
ile, a
ll c
om
pa
nie
s in
th
e
ch
em
ica
ls s
ec
tor
rate
d t
his
as
sig
nifi
ca
nt,
lik
ely
du
e t
o
a m
ix o
f re
gu
lato
ry a
nd
so
cie
tal p
ress
ure
s. W
e e
xp
ec
t
to s
ee
th
is d
em
an
d in
cre
ase
as
glo
ba
l e
nv
iro
nm
en
tal
sta
nd
ard
s a
re a
pp
lie
d.
4 S
up
pli
er
inte
gra
tio
n a
nd
co
mm
un
ica
tio
n: T
he
ma
jori
ty o
f co
mp
an
ies
take
or
are
loo
kin
g t
o t
ake
an
inte
gra
ted
, en
terp
rise
-wid
e a
pp
roa
ch
to
ma
na
gin
g
sup
plie
r re
lati
on
ship
s. H
ow
eve
r, m
an
y c
om
pa
nie
s
do
no
t fu
lly
co
mm
un
ica
te a
nd
en
ga
ge
wit
h t
he
ir
sup
plie
rs; o
nly
57
% r
ep
ort
ed
th
at
the
y s
ha
red
th
eir
pro
jec
t g
oa
ls w
ith
su
pp
lie
rs a
nd
less
th
an
ha
lf s
ha
red
the
ir w
ide
r b
usi
ne
ss g
oa
ls. T
his
ma
y lin
k t
o o
ne
in
thre
e c
om
pa
nie
s re
po
rtin
g a
sig
nifi
ca
nt
dis
pu
te
wit
h a
su
pp
lie
r in
th
e la
st t
wo
ye
ars
. En
ha
nce
d
com
mu
nic
ati
on
an
d o
bje
cti
ve
sh
ari
ng
will
he
lp a
vo
id
dis
pu
tes
an
d p
roje
ct
failu
res,
an
d e
nsu
re a
be
tte
r
inte
gra
ted
va
lue
ch
ain
th
at
is o
rie
nte
d t
ow
ard
s th
e
en
d c
ust
om
er.
5 I
nte
rna
l st
ak
eh
old
er
en
ga
ge
me
nt:
On
ly a
rou
nd
ha
lf
of
com
pa
nie
s b
elie
ve
th
at
the
y a
re g
oo
d a
t e
ng
ag
ing
the
ir in
tern
al st
ake
ho
lde
rs o
n c
ap
ita
l in
ve
stm
en
t
pro
gra
ms.
Be
tte
r co
lla
bo
rati
on
an
d c
om
mu
nic
ati
on
wa
s id
en
tifi
ed
as
the
mo
st s
ign
ifica
nt
fac
tor
to
imp
rove
sta
keh
old
er
en
ga
ge
me
nt
an
d t
he
su
cce
ssfu
l
ou
tco
me
of
pro
jec
ts
6 C
en
tra
liza
tio
n: 6
2%
of
ind
ust
ria
l m
an
ufa
ctu
rin
g
com
pa
nie
s m
ake
de
cis
ion
s a
bo
ut
ca
pit
al in
ve
stm
en
t
pro
jec
ts c
en
tra
lly,
an
d 8
9%
of
com
pa
nie
s h
ave
a
cen
tra
l, e
nte
rpri
se-w
ide
inve
stm
en
t b
oa
rd. T
he
he
av
y
ind
ust
ria
ls s
ec
tor
lea
ds
the
wa
y in
th
is t
ren
d, w
ith
all
resp
on
de
nts
fro
m t
his
se
cto
r re
po
rtin
g t
ha
t th
ese
de
cis
ion
s a
re m
ad
e c
en
tra
lly.
7 T
he
wa
r fo
r ta
len
t: O
ve
r h
alf
of
com
pa
nie
s sa
y
recru
itin
g a
nd
re
tain
ing
th
e r
igh
t p
eo
ple
to
pla
n a
nd
de
live
r ca
pit
al in
ve
stm
en
t p
rog
ram
s is
diffi
cu
lt a
nd
42
% o
f co
mp
an
ies
rep
ort
th
is h
as
be
com
e m
ore
diffi
cu
lt o
ve
r th
e la
st t
wo
ye
ars
. Wh
ile w
ork
ing
clo
sely
wit
h u
niv
ers
itie
s w
ill im
pro
ve
th
is, i
t is
on
ly a
sm
all
pa
rt o
f th
e s
olu
tio
n a
nd
co
mp
an
ies
are
loo
kin
g t
o
diff
ere
nt
ave
nu
es
to a
ttra
ct
an
d u
p-s
kill
ta
len
t.
In t
his
re
po
rt w
e e
xa
min
e t
he
se t
ren
ds
an
d w
ha
t th
ey
me
an
fo
r m
an
ufa
ctu
rers
’ en
d-g
oa
ls o
f g
ett
ing
th
eir
pro
du
cts
to
ma
rke
t a
nd
inn
ov
ati
ng
cu
ttin
g-e
dg
e
pro
du
ct
lin
es.
We
go
on
to
dis
cu
ss s
eve
n p
rac
tica
l
ste
ps
tha
t co
mp
an
ies
ca
n t
ake
to
pro
-ac
tive
ly r
esp
on
d
to t
he
se t
ren
ds,
usi
ng
insi
gh
t fr
om
ou
r e
xp
ert
s w
ho
reg
ula
rly
pa
rtn
er
wit
h h
igh
pe
rfo
rmin
g o
rga
niz
ati
on
s
an
d t
ake
s le
arn
ing
s fr
om
acro
ss s
ec
tors
.
BET
TER
R
ETU
RN
S A
ND
IM
PRO
VED
SPE
ED
TO M
AR
KET
FLEX
IBIL
ITY
AN
D A
GIL
ITY
SUST
AIN
AB
ILIT
Y IN
CA
PITA
L PR
OG
RA
MS
SUPP
LIER
IN
TEG
RAT
ION
AN
D
COM
MU
NIC
ATIO
N
INTE
RN
AL
STA
KEH
OLD
ER
ENG
AG
EMEN
T
THE
WA
R
FOR
TA
LEN
T
CEN
TRA
LIZA
TIO
N
SEV
ENK
EYTH
EMES1
2
3
4
56
7
3. R
ESEA
RCH
OV
ERV
IEW
1 htt
p:/
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ba
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ufa
ctu
rin
g.h
tml
Wit
h m
an
ufa
ctu
rin
g in
cre
asi
ng
bu
t in
ve
stm
en
t fa
llin
g,
a g
ap
is b
ein
g c
rea
ted
th
at,
if n
ot
ad
dre
sse
d, w
ill r
esu
lt
in m
an
ufa
ctu
rers
no
t b
ein
g a
ble
to
me
et
de
ma
nd
. Th
is
ga
p w
ill o
nly
wid
en
if t
his
tre
nd
co
nti
nu
es
resu
ltin
g in
hu
ge
mis
sed
op
po
rtu
nit
ies.
Th
is a
lre
ad
y c
ha
lle
ng
ing
Ca
pE
x e
nv
iro
nm
en
t si
ts
ag
ain
st a
ba
ckd
rop
of
key
ind
ust
ry d
rive
rs t
ha
t a
re
infl
ue
ncin
g h
ow
ind
ust
ria
l m
an
ufa
ctu
rin
g c
om
pa
nie
s
pla
n a
nd
co
nst
ruc
t th
eir
fa
cilit
ies:
dig
ita
liza
tio
n,
au
tom
ati
on
an
d t
ech
no
log
y a
dv
an
cem
en
t, f
orm
ing
Ind
ust
ry 4
.0, g
lob
aliz
ati
on
, co
nso
lid
ati
on
an
d a
wa
r
for
tale
nt.
It is
ev
ide
nt
tha
t m
an
y c
om
pa
nie
s a
re a
lre
ad
y
resp
on
din
g t
o t
he
se c
ha
lle
ng
es.
Ye
t th
ere
are
fe
w
sou
rce
s o
f in
sig
ht
into
ho
w t
he
ind
ust
ria
l se
cto
rs, a
s a
wh
ole
, are
re
spo
nd
ing
an
d h
ow
ind
ivid
ua
l co
mp
an
ies
are
pe
rfo
rmin
g in
co
nte
xt
of
the
ir p
ee
rs. O
ur
rese
arc
h
ad
dre
sse
d t
his
by
pro
vid
ing
un
iqu
e in
sig
ht
into
ho
w
the
ea
ch
ind
ust
ria
l se
cto
r is
re
spo
nd
ing
, an
d m
ake
s
ove
rarc
hin
g c
om
pa
riso
ns
be
twe
en
se
cto
rs, i
nd
ica
tin
g
wh
ere
co
mp
an
ies
ca
n le
arn
fro
m b
oth
th
eir
pe
ers
an
d
oth
er
sec
tors
.
3.1
IN
TR
OD
UC
TIO
N T
O T
HE
RE
SE
AR
CH
We
inte
rvie
we
d 7
3 e
xe
cu
tive
s a
t in
du
stri
al
ma
nu
fac
turi
ng
co
mp
an
ies
fro
m a
cro
ss t
he
glo
be
, all
wit
h a
re
spo
nsi
bilit
y f
or
ma
na
gin
g t
he
ir c
om
pa
ny
’s
ca
pit
al d
elive
ry p
rog
ram
s. T
og
eth
er,
th
e r
esp
on
de
nts
rep
rese
nt
lea
din
g m
an
ufa
ctu
rin
g c
om
pa
nie
s g
en
era
tin
g
ove
r U
S$
30
0 b
illio
n in
re
ve
nu
es
ea
ch
ye
ar,
sp
an
nin
g
the
au
tom
oti
ve
, ph
arm
ace
uti
ca
l, c
he
mic
al, b
uild
ing
an
d m
eta
l, h
ea
vy
ind
ust
ria
l, f
ast
mo
vin
g c
on
sum
er
go
od
s (F
MC
G -
inclu
din
g f
oo
d a
nd
be
ve
rag
e)
ele
ctr
ica
l,
en
gin
ee
rin
g a
nd
ge
ne
ral m
an
ufa
ctu
rin
g s
ec
tors
.
Th
e in
terv
iew
s w
ere
co
nd
uc
ted
by
Ip
sos
MO
RI in
20
16
,
an
d f
ocu
sed
on
ke
y a
spe
cts
in c
ap
ita
l d
elive
ry
to id
en
tify
ho
w c
om
pa
nie
s m
an
ag
e a
nd
op
tim
ize
the
ir c
ap
ita
l e
xp
en
dit
ure
(C
ap
Ex)
pro
gra
ms
an
d t
he
ch
all
en
ge
s th
ey
are
fa
cin
g in
re
spo
nd
ing
to
ma
rke
t a
nd
bu
sin
ess
dis
rup
tors
.
Acc
ord
ing
to
UN
IDO
, glo
ba
l m
an
ufa
ctu
rin
g o
utp
ut
wa
s
ex
pe
cte
d t
o in
cre
ase
by
2.8
% in
20
16
. Ma
nu
fac
turi
ng
pro
du
cti
on
wa
s like
ly t
o r
ise
by
1.3
% in
ind
ust
ria
lize
d
cou
ntr
ies
an
d b
y 4
.7%
in d
eve
lop
ing
eco
no
mie
s.
At
the
sa
me
tim
e, g
lob
al C
ap
Ex
ha
s b
ee
n s
tru
gg
lin
g t
o
ma
ke h
ea
dw
ay
ove
r th
e p
ast
co
up
le o
f ye
ars
. Glo
ba
l
no
n-fi
na
ncia
l C
ap
Ex
sp
en
din
g t
ota
led
$2
,70
2 b
illio
n in
20
15
an
d is
fo
reca
st t
o d
rop
to
$2
,54
1 b
illio
n in
20
17.
3.2
IN
DU
ST
RY
OU
TLO
OK
In t
he
mid
st o
f a
re
vo
luti
on
, in
du
stri
al m
an
ufa
ctu
rin
g
exe
cu
tive
s a
re p
osi
tive
ab
ou
t th
e o
ve
rall
fu
ture
of
the
ir
ind
ust
ry: m
ore
th
an
on
e-t
hir
d (
36
%)
be
lie
ve
th
at
the
ir
sec
tor
will
imp
rove
ove
r th
e n
ex
t ye
ar,
an
d o
ve
r h
alf
(51
%)
say
th
at
the
ir s
ec
tor
will
re
ma
in t
he
sa
me
(se
e
Fig
ure
2).
Th
ese
are
en
cou
rag
ing
sig
ns
follo
win
g t
he
low
-gro
wth
ye
ars
in t
he
wa
ke o
f th
e g
lob
al fi
na
ncia
l
cri
sis
an
d a
re
cen
t d
ow
ntu
rn in
Ca
pE
x s
pe
nd
ing
, le
d in
a la
rge
pa
rt b
y n
orm
aliz
ati
on
aft
er
the
co
mm
od
itie
s
bo
om
.
De
spit
e t
his
ge
ne
ral o
pti
mis
m, e
xe
cu
tive
s re
tain
a
de
gre
e o
f ca
uti
on
wh
en
it c
om
es
to m
an
ag
ing
th
eir
ca
pit
al in
ve
stm
en
t p
roje
cts
. Th
e la
rge
st c
ha
lle
ng
e,
acc
ord
ing
to
mo
re t
ha
n o
ne
-qu
art
er
of
the
inte
rvie
we
d
exe
cu
tive
s is
th
e la
ck o
f a
va
ila
ble
inve
stm
en
t o
r fi
na
nce
.
An
d o
ne
in fi
ve
als
o r
ep
ort
ed
th
at
tale
nt
recru
itm
en
t is
a k
ey
ch
all
en
ge
(se
e T
ab
le 1
).
On
to
p o
f ju
gg
lin
g t
he
se d
ay
to
da
y c
ha
lle
ng
es
of
Ca
pE
x, c
om
pa
nie
s a
re s
tart
ing
to
th
ink a
bo
ut
the
futu
re a
nd
th
e im
pa
ct
ne
w t
ech
no
log
y a
nd
so
cio
-
eco
no
mic
fa
cto
rs w
ill h
ave
on
th
eir
ca
pit
al
inve
stm
en
ts t
o r
em
ain
co
mp
eti
tive
.
"Th
e k
ey
ch
all
en
ge
s fo
r
us
are
to
gra
sp
the
in
du
stry
tre
nd
in
tim
e,
the
em
erg
en
ce
an
d u
se o
f
of
hig
h-e
nd
tec
hn
olo
gy
an
d t
he
la
ck
of
hig
h-e
nd
tale
nt.
"
Auto
mot
ive,
Ch
ina
"Th
e b
igg
est
ch
all
en
ge
is
to g
en
era
te
ca
sh t
o in
ve
st
be
ca
use
th
e
ma
rke
t is
slu
gg
ish
" -
Build
ing
& M
etal
s, F
ranc
e
51%
10%
3%
36%
Impr
ove
Stay
the
sam
e
Get
wor
se
Don
’t kn
ow
Auto
mot
ive:
0Bu
ildin
g &
Met
als:
41
Chem
ical
: 22
Engi
neer
ing:
50
FMCG
: 20
Hea
vy In
dust
rials
: 0M
anuf
actu
ring:
50
Phar
mac
eutic
al: 2
9
Auto
mot
ive:
80
Build
ing
& M
etal
s: 5
9Ch
emic
al: 5
6En
gine
erin
g: 3
3FM
CG: 6
0H
eavy
Indu
stria
ls: 6
7M
anuf
actu
ring:
40
Phar
mac
eutic
al: 4
3
% o
f res
pond
ents
per s
ecto
r%
of r
espo
nden
ts
per s
ecto
r
Ove
rall
resp
onde
nts
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
4,00
0
3,50
0
3,00
0
2,50
0
2,00
0
1,50
0
1,00
0
500 0
+25.
0
+20.
0
+15.
0
+10.
0
+5.0
0.0
-5.0
-10.
0
-15.
0
Capi
tal E
xpen
ditu
re (U
S$ B
N)
Capi
tal E
xpen
ditu
re G
row
th (Y
OY%
)
Tabl
e 1:
The
top
five
chal
leng
es in
man
agin
g ca
pita
l in
vest
men
t pro
ject
s
CHA
LLEN
GE
% O
F RE
SPO
ND
ENTS
1A
va
ila
bil
ity
of
fin
an
ce
27
%
2L
ac
k o
f a
va
ila
ble
ta
len
t2
1%
3In
cre
asin
g p
rod
uc
tio
n c
osts
15
%
4D
em
on
str
ati
ng
re
turn
on
in
ve
stm
en
t1
2%
5Q
ua
lity
of
serv
ice
/pro
du
ct
10
%
Figu
re 2
: Ove
rall,
do
you
thin
k th
e ou
tlook
for y
our s
ecto
r will
impr
ove,
st
ay th
e sa
me
or g
et w
orse
ove
r the
nex
t 12
mon
ths?
Figu
re 1
: Glo
bal n
on-fi
nanc
ial C
apEx
(200
3 –
2017
F)
Sour
ce: S
&P G
loba
l Mar
ket I
ntel
ligen
ce, S
&P G
loba
l Rat
ings
.N
ote
: Fig
ure
s a
re r
ou
nd
ed
to
th
e n
ea
rest
wh
ole
nu
mb
er
No
te: F
igu
res
are
ro
un
de
d t
o t
he
ne
are
st w
ho
le n
um
be
r
4. S
EVEN
KEY
TH
EMES
AN
D T
REN
DS
4.1
BE
TT
ER
RE
TU
RN
S A
ND
IM
PR
OV
ED
SP
EE
D T
O M
AR
KE
T
Un
surp
risi
ng
ly, 8
0%
of
resp
on
de
nts
sa
y t
ha
t re
turn
on
inve
stm
en
t (R
OI)
is a
sig
nifi
ca
nt
fac
tor
in h
ow
th
ey
ap
pro
ach
ca
pit
al p
roje
cts
an
d ‘p
rofi
tab
ilit
y’ i
s th
e m
ost
com
mo
nly
use
d p
erf
orm
an
ce m
etr
ic, a
cco
rdin
g t
o 6
2%
of
exe
cu
tive
s.
A r
eso
un
din
g 8
8%
of
pa
rtic
ipa
nts
sa
y t
he
y a
re c
on
fid
en
t
tha
t th
ey
ca
n d
em
on
stra
te t
he
va
lue
th
at
ca
pit
al
inve
stm
en
t p
roje
cts
bri
ng
to
th
eir
wid
er
bu
sin
ess
. Th
is
con
fid
en
ce e
xte
nd
s to
th
e p
erf
orm
an
ce o
f th
eir
ass
et
po
rtfo
lio
in R
OI, w
hic
h 6
6%
ra
te a
s ‘g
oo
d’ o
r ‘v
ery
go
od
’
(se
e F
igu
re 3
), le
d b
y t
he
ch
em
ica
ls s
ec
tor,
in w
hic
h a
com
pe
llin
g 8
9%
of
com
pa
nie
s re
po
rte
d t
he
RO
I o
f th
eir
bu
ilt a
sse
t p
ort
folio
as
‘go
od
’ or
‘ve
ry g
oo
d’.
Ho
we
ve
r, n
o c
om
pa
nie
s in
th
e h
ea
vy
ind
ust
ria
ls
sec
tor
rate
d t
he
ir R
OI p
erf
orm
an
ce a
s ‘g
oo
d’,
an
d a
no
tew
ort
hy
33
% o
f re
spo
nd
en
ts in
th
is s
ec
tor
we
re
un
sure
of
the
RO
I p
erf
orm
an
ce o
f th
eir
bu
ilt a
sse
t
po
rtfo
lio
s. T
his
ma
y b
e a
ttri
bu
ted
to
hig
h c
ap
ita
l
inte
nsi
ty, c
om
bin
ed
wit
h t
he
ma
jor
infl
ue
nce
of
com
mo
dit
y p
rice
s. T
he
refo
re, b
ala
ncin
g t
he
ir R
OI w
ith
the
ir o
rde
r p
roce
ssin
g s
ho
uld
be
ke
y. T
he
un
cert
ain
ty
"Th
e
ac
co
mp
lish
me
nt
of
ou
r p
urp
ose
is [
the
mo
st
sig
nifi
ca
nt
risk
to
ca
pit
al
pro
gra
ms]
;
the
re
turn
on
inv
est
me
nt
mu
st
be
su
cce
ssfu
l.”
Auto
mot
ive,
G
erm
any
“T
he
mo
st
imp
ort
an
t
ch
all
en
ge
s to
ca
pit
al
pro
gra
ms
are
to
re
du
ce
sec
uri
ty r
isk
s,
red
uce
co
sts
an
d in
cre
ase
sp
ee
d o
f p
roje
ct
imp
lem
en
tati
on
.”
Chem
ical
s,
Belg
ium
reve
ale
d in
ou
r re
sea
rch
co
uld
hig
hlig
ht
a n
ee
d f
or
the
ir o
pe
rati
ng
te
am
s to
be
tte
r re
po
rt o
r co
mm
un
ica
te
pe
rfo
rma
nce
ba
ck t
o t
he
ca
pit
al p
rog
ram
te
am
s in
this
se
cto
r.
Wh
en
it c
om
es
to s
pe
ed
to
ma
rke
t, c
om
pa
nie
s a
re
ma
rgin
ally
less
co
nfi
de
nt,
wit
h 6
2%
ra
tin
g t
he
ir a
sse
t
po
rtfo
lio
pe
rfo
rma
nce
as
‘go
od
’. P
erf
orm
an
ce w
as
pa
rtic
ula
rly
low
in t
he
ph
arm
ace
uti
ca
l se
cto
r, w
he
re a
me
re 2
9%
of
com
pa
nie
s ra
ted
th
eir
sp
ee
d t
o m
ark
et
as
‘go
od
’ an
d n
ea
rly
ha
lf w
ere
un
sure
of
the
ir p
erf
orm
an
ce
in t
his
. Th
is fi
nd
ing
is e
xp
ec
ted
giv
en
th
e la
ser-
sha
rp
focu
s o
f p
ha
rma
ceu
tica
l co
mp
an
ies
on
sp
ee
d t
o m
ark
et
follo
win
g p
ate
nt
ap
pro
va
l, a
nd
it is
po
ssib
le t
ha
t th
e
succ
ess
cri
teri
a f
or
pe
rfo
rma
nce
is e
ve
n h
igh
er
tha
n in
oth
er
ind
ust
ry s
ec
tors
. Wh
at
this
do
es
po
int
to, i
s th
at
an
en
ha
nce
d a
bilit
y t
o b
en
ch
ma
rk p
erf
orm
an
ce in
th
is
are
a w
ou
ld b
e b
en
efi
cia
l in
th
is m
ark
et,
an
d h
ere
in
pa
rtic
ula
r, a
sse
t p
erf
orm
an
ce, fl
ex
ibilit
y a
nd
ag
ilit
y
is k
ey.
Sim
ila
rly,
be
ing
firs
t to
ma
rke
t is
ke
y f
or
the
FM
CG
sec
tor,
in w
hic
h c
om
pa
nie
s u
se m
ark
et
rese
arc
h d
ata
to
ide
nti
fy c
on
sum
er
de
ma
nd
an
d r
ea
ch
ide
nti
fie
d m
ark
ets
ah
ea
d o
f co
mp
eti
tio
n. O
pp
osi
te t
o t
he
ph
arm
ace
uti
ca
l
sec
tor,
co
mp
an
ies
in t
he
FM
CG
se
cto
r a
re p
erf
orm
ing
OVE
RALL
- Ret
urn
on in
vest
men
t:
OVE
RALL
- Spe
ed to
mar
ket:
AU
TO
MO
TIV
EB
UIL
DIN
G &
ME
TA
LS
CH
EM
ICA
LS
EN
GIN
EE
RIN
GF
MC
GH
EA
VY
IN
DU
ST
RIA
LS
MA
NU
FA
CT
UR
ING
PH
AR
MA
CE
UT
ICA
L
AU
TO
MO
TIV
EB
UIL
DIN
G &
ME
TA
LS
CH
EM
ICA
LS
EN
GIN
EE
RIN
GF
MC
GH
EA
VY
IN
DU
ST
RIA
LS
MA
NU
FA
CT
UR
ING
PH
AR
MA
CE
UT
ICA
L
5%49
%16
%25
%4%
10%
7%19
%42
%
Ver
y go
od F
airly
goo
d F
airly
poo
rN
eith
er g
ood
nor p
oor
Don
't kn
ow
22%
VE
we
ll a
t th
is, w
ith
80
% o
f co
mp
an
ies
rati
ng
th
eir
sp
ee
d
to m
ark
et
as
‘go
od
’ or
‘ve
ry g
oo
d’.
Wit
h t
he
va
ryin
g c
on
fid
en
ce in
pe
rfo
rma
nce
acro
ss
sec
tors
, ho
w c
om
pa
nie
s a
nd
se
cto
rs m
on
ito
r th
eir
ass
et
an
d c
ap
ita
l p
rog
ram
pe
rfo
rma
nce
is v
ita
l. N
ea
rly
th
ree
-
qu
art
ers
(7
0%
) o
f m
an
ufa
ctu
rin
g c
om
pa
nie
s sa
y t
he
y
ha
ve
ro
bu
st m
ea
ns
of
me
asu
rin
g t
he
fin
an
cia
l b
en
efi
ts
of
the
ir s
pe
nd
ing
on
ca
pit
al in
ve
stm
en
t p
roje
cts
.
Su
cce
ss in
th
is a
rea
inclu
de
s b
oth
ha
vin
g a
n e
ffe
cti
ve
me
an
s o
f ca
ptu
rin
g p
erf
orm
an
ce, a
nd
a p
rag
ma
tic w
ay
of
mo
ne
tizi
ng
th
e b
en
efi
ts t
ha
t th
ose
pro
gra
ms
de
live
r.
Ye
t, w
hile
a h
ea
lth
y 6
1%
of
com
pa
nie
s sa
y t
he
y
ide
nti
fy le
sso
ns
lea
rne
d f
rom
co
mp
lete
d p
roje
cts
,
just
54
% s
ha
re t
ho
se le
sso
ns
acro
ss t
he
bu
sin
ess
. Th
is
failu
re t
o s
ha
re le
sso
ns
lim
its
the
op
po
rtu
nit
y t
o fi
nd
imp
rove
me
nts
fo
r fu
ture
ca
pit
al p
roje
cts
. Co
nse
qu
en
tly,
bu
sin
ess
es
ma
y lo
se o
ut
on
co
st s
av
ing
s o
r im
pro
ve
d
succ
ess
of
futu
re c
ap
ita
l p
roje
cts
, de
teri
ora
tin
g
the
bu
sin
ess
ca
se f
or
futu
re in
ve
stm
en
t. U
tiliz
ing
be
nch
ma
rkin
g d
ata
fro
m c
ap
ita
l in
ve
stm
en
t p
roje
cts
,
acro
ss b
oth
ow
n a
nd
se
cto
r p
rog
ram
s, c
an
gre
atl
y
imp
rove
bo
th c
ost
sa
vin
gs
an
d s
pe
ed
of
bu
ild. T
he
ob
vio
us
resu
lt is
a f
ast
er
an
d b
ett
er
RO
I
as
pro
du
cts
ca
n b
e p
rod
uce
d a
nd
de
live
red
to
ma
rke
t q
uic
ker.
Fu
rth
erm
ore
, wh
ile t
wo
in t
hre
e c
om
pa
nie
s h
eld
ce
ntr
al
an
d/o
r b
usi
ne
ss u
nit
-le
ve
l b
en
ch
ma
rks
on
th
eir
ca
pit
al
inve
stm
en
t re
gis
ters
, on
ly o
ne
-qu
art
er
of
resp
on
de
nts
’
reg
iste
rs b
en
ch
ma
rk a
ga
inst
oth
er
com
pa
nie
s in
the
ir s
ec
tor
an
d o
nly
on
e in
five
be
nch
ma
rk a
ga
inst
com
pa
nie
s in
oth
er
sec
tors
. Wit
ho
ut
be
nch
ma
rkin
g
ag
ain
st in
du
stry
sta
nd
ard
s, c
om
pa
nie
s m
ay
no
t b
e
cert
ain
th
at
the
ir p
erf
orm
an
ce is
as
com
pe
titi
ve
as
it
sho
uld
it b
e a
nd
are
un
aw
are
of
wh
at
be
st p
rac
tice
loo
ks
like
in t
he
hig
he
st p
erf
orm
ing
se
cto
rs.
Th
e lo
ca
tio
n a
sse
ts a
re b
uilt
in is
als
o a
ke
y f
ac
tor
for
RO
I. U
nd
ers
tan
din
g w
he
re f
acilit
ies
are
loca
ted
glo
ba
lly
ca
n h
elp
info
rm c
om
pa
nie
s in
th
eir
de
cis
ion
s; is
it b
ett
er
to m
an
ufa
ctu
re o
uts
ide
of
the
ch
ose
n m
ark
et
an
d s
hip
,
or
is it
be
tte
r to
loca
te p
rod
uc
tio
n lo
ca
lly?
Ho
w t
he
se d
ecis
ion
s a
re m
ad
e o
bv
iou
sly
diff
ers
pe
r se
cto
r, t
he
au
tom
oti
ve
, he
av
y in
du
stri
al a
nd
ae
rosp
ace
se
cto
rs, f
or
ex
am
ple
, do
no
t n
ece
ssa
rily
ne
ed
to
be
wit
hin
th
eir
co
nsu
me
r m
ark
et
an
d t
hu
s
ca
n m
an
ufa
ctu
re w
he
re in
pu
t re
sou
rce
s a
re lo
ca
ted
,
or
in lo
we
r-co
st t
err
ito
rie
s, a
nd
sh
ip. W
he
rea
s fo
r
ph
arm
ace
uti
ca
l o
r F
MC
G c
om
pa
nie
s it
is e
sse
nti
al
to h
ave
th
e e
nd
-pro
du
ct
on
th
e g
rou
nd
an
d w
ith
con
sum
ers
fa
st, t
o lo
we
r lo
gis
tics
cost
s a
nd
en
ha
nce
spe
ed
to
ma
rke
t.
Th
is is
pa
rtic
ula
rly
ess
en
tia
l fo
r th
e f
oo
d a
nd
be
ve
rag
e s
ec
tor,
du
e t
o t
he
pe
rish
ab
le n
atu
re o
f
the
ir p
rod
uc
ts. W
ith
th
e d
yn
am
ic a
nd
fu
nd
am
en
tal
ch
an
ge
s in
ma
nu
fac
turi
ng
as
a w
ho
le, c
on
tin
ua
l
rev
iew
an
d im
pro
ve
me
nts
in t
he
se e
ffo
rts
ca
nn
ot
be
un
de
rest
ima
ted
.
Figu
re 3
: Thi
nkin
g ab
out y
our p
ortf
olio
of p
rodu
ctio
n, d
istrib
utio
n an
d ot
her
faci
litie
s, h
ow w
ould
you
rate
you
r cur
rent
per
form
ance
on
each
of t
he fo
llow
ing?
No
te: F
igu
res
are
ro
un
de
d t
o t
he
ne
are
st w
ho
le n
um
be
r
4.2
FL
EX
IBIL
ITY
AN
D A
GIL
ITY
Ch
em
ica
ls s
ec
tor
ah
ea
d in
fle
xib
ilit
y
Th
e r
ise
of
fle
xib
le m
an
ufa
ctu
rin
g h
as
pu
t p
ress
ure
on
bu
ilt a
sse
ts t
o b
e a
gile
to
acc
om
mo
da
te p
rod
uc
tio
n o
f
va
rio
us
pro
du
cts
, or
sma
ll-b
atc
h p
rod
uc
ts, s
uch
as
in
the
bio
ph
arm
a a
nd
sp
ecia
lty
ch
em
ica
ls s
ec
tors
.
Ou
r fi
nd
ing
s sh
ow
th
at
com
pa
nie
s in
th
e c
he
mic
als
sec
tor
pe
rce
ive
th
em
selv
es
to b
e m
ore
re
ad
y t
o
ad
ap
t to
ch
an
ge
th
an
co
mp
an
ies
in o
the
r se
cto
rs.
78
% o
f re
spo
nd
en
ts in
th
e c
he
mic
als
se
cto
r sa
y t
ha
t
the
ir c
urr
en
t p
ort
folio
of
pro
du
cti
on
, dis
trib
uti
on
an
d o
the
r fa
cilit
ies
is fl
ex
ible
en
ou
gh
to
me
et
the
ch
all
en
ge
s fa
cin
g t
he
ir b
usi
ne
ss, c
om
pa
red
wit
h 5
2%
acro
ss a
ll s
ec
tors
(se
e F
igu
re 4
). T
his
ma
y b
e b
eca
use
,
tho
ug
h c
he
mic
al co
mp
an
ies
oft
en
ta
ke c
en
tra
l
ove
rall
de
cis
ion
s, it
is n
ot
un
com
mo
n in
th
is s
ec
tor
for
ind
ivid
ua
l si
tes
to c
om
pe
te f
or
inve
stm
en
t fr
om
th
e
cen
ter.
Th
ere
fore
, th
ere
is a
ne
ed
fo
r fl
ex
ibilit
y t
o b
e
ab
le t
o s
wit
ch
pro
du
ct
lin
es
to s
ecu
re b
oa
rd a
pp
rov
al
for
fun
din
g a
nd
sh
ow
low
er
cost
s in
ge
ttin
g p
rod
uc
t
to m
ark
et.
Th
is is
un
like
se
cto
rs s
uch
as
au
tom
oti
ve
,
wh
ere
co
mp
an
ies
are
mo
re lik
ely
to
ha
ve
a g
lob
al
ma
nu
fac
turi
ng
str
ate
gy,
wh
ich
all
ow
s th
em
to
sh
ift
pro
du
ct
line
s a
rou
nd
th
e w
orl
d.
Th
is fl
ex
ibilit
y a
nd
diff
ere
nce
in a
pp
roa
ch
ca
n, h
ow
eve
r,
imp
ac
t ca
pa
cit
y. S
om
e s
ec
tors
ha
ve
a t
en
de
nc
y t
o
op
era
te f
or
ove
rca
pa
cit
y, w
hilst
oth
ers
su
ffe
r fr
om
no
t b
ein
g a
ble
to
pro
du
ce s
uffi
cie
nt
pro
du
cts
qu
ickly
en
ou
gh
. Ha
vin
g a
fa
cilit
y t
ha
t ca
n a
da
pt
to c
ha
ng
es
in
pro
du
ct
line
s o
r h
ou
se m
ore
th
an
on
e p
rod
uc
t re
sult
s
in c
ost
sa
vin
gs
an
d m
ore
su
sta
ina
ble
re
turn
s. W
he
n
pa
rtn
eri
ng
, pa
rtic
ula
rly
wit
h a
uto
mo
tive
co
mp
an
ies,
we
see
ho
w fl
ex
ible
th
ey
ha
ve
ma
de
th
eir
fa
cilit
ies
to h
elp
the
m t
ackle
ma
rke
t d
em
an
d s
hif
ts a
nd
th
ere
is m
uch
tha
t ca
n b
e le
arn
t fr
om
th
is s
ec
tor
by
oth
ers
.
Giv
en
60
% o
f re
spo
nd
en
ts s
ay
th
at
the
y h
ave
a m
ult
i-
ye
ar
inve
stm
en
t p
lan
in p
lace
, it
is c
on
cern
ing
th
at
52
%
are
la
ckin
g c
on
fid
en
ce t
ha
t th
eir
bu
ilt a
sse
t p
ort
folio
s
are
fle
xib
le e
no
ug
h t
o m
ee
t th
e c
ha
lle
ng
es
facin
g t
he
ir
bu
sin
ess
. Th
is r
ais
es
the
qu
est
ion
of
wh
eth
er
the
ir
lon
g-t
erm
inve
stm
en
t p
lan
s p
rop
erl
y t
ran
sla
te -
or
are
bo
ug
ht
into
- b
y r
ea
l e
sta
te a
nd
pro
du
cti
on
te
am
s.
On
e r
ea
son
co
uld
be
th
at
org
an
iza
tio
ns
face
co
mp
lex
ch
oic
es
as
to w
he
the
r to
inve
st in
leg
ac
y a
sse
ts,
bri
ng
ing
in m
od
ern
te
ch
no
log
y t
o a
ch
ieve
fle
xib
ilit
y o
r
bu
ild a
ne
w a
sse
t th
at
is im
me
dia
tely
fit
for
pu
rpo
se,
wh
ich
ca
n g
en
era
te d
iffe
ren
t a
nd
so
me
tim
es
op
po
sin
g
vie
ws.
Wh
at
is c
lea
r, is
th
at
gre
ate
r co
nn
ec
tiv
ity
be
twe
en
th
e r
ea
l e
sta
te a
nd
pla
nt
an
d p
rod
uc
tio
n
tea
ms
an
d s
tra
teg
y a
nd
co
rpo
rate
fu
nc
tio
ns
is e
sse
nti
al,
an
d w
e a
re s
ee
ing
th
at
succ
ess
ful o
rga
niz
ati
on
s tr
ea
t
bu
ilt a
sse
ts a
s a
str
ate
gic
dri
ve
r fo
r g
row
th, r
ath
er
tha
n
just
an
ess
en
tia
l o
ve
rhe
ad
.
Lo
we
r le
ve
ls o
f co
nfi
de
nce
in t
he
fle
xib
ilit
y o
f b
uilt
ass
ets
is a
lso
lin
ked
to
th
e c
urr
en
t p
ace
of
ch
an
ge
an
d d
isru
pti
on
. Ch
an
ge
is s
ee
n o
n t
he
ho
rizo
n a
nd
reco
gn
ize
d b
y c
om
pa
nie
s, h
ow
eve
r, in
ve
stm
en
t to
resp
on
d t
o c
ha
ng
e is
oft
en
no
t a
va
ila
ble
ye
t. F
or
ex
am
ple
, th
e p
ha
rma
ceu
tica
l se
cto
r is
an
ticip
ati
ng
a
shif
t fr
om
tra
dit
ion
al to
bio
ph
arm
a d
rug
s. W
hile
th
ey
kn
ow
th
is c
ha
ng
e is
co
min
g a
nd
th
ere
fore
re
cog
niz
e
tha
t a
ny
ne
w f
acilit
ies
ne
ed
to
be
fle
xib
le e
no
ug
h t
o
acc
om
mo
da
te f
utu
re c
ha
ng
e, t
he
fu
nd
ing
ma
y n
ot
ye
t
be
av
aila
ble
to
de
live
r th
is. T
his
co
uld
lin
k t
o w
hy
no
ph
arm
ace
uti
ca
l co
mp
an
ies
ag
ree
d t
ha
t th
eir
po
rtfo
lio
is
fle
xib
le e
no
ug
h.
Ad
dit
ion
ally,
in t
ech
ma
nu
fac
turi
ng
, th
e r
ise
of
ad
dit
ive
ma
nu
fac
turi
ng
is n
ot
on
ly c
ha
ng
ing
pro
du
cti
on
me
tho
ds
bu
t a
lso
pla
ys
a m
ajo
r ro
le in
th
e r
eq
uir
em
en
t
for
fle
xib
ilit
y a
nd
ag
ilit
y.
Th
e a
pp
roa
ch
to
pri
ori
tiza
tio
n o
f th
e a
va
ila
ble
Ca
pE
x
is k
ey
an
d w
e h
ave
se
en
th
at
wh
en
th
is is
co
nsi
ste
ntl
y
ap
plie
d t
he
loca
l C
ap
Ex
te
am
s im
pro
ve
bo
th p
lan
nin
g
an
d b
usi
ne
ss c
ase
pe
rfo
rma
nce
.
Wh
ile 8
0%
of
com
pa
nie
s sa
y t
ha
t th
eir
ass
et
lon
ge
vit
y
pe
rfo
rma
nce
is ‘fa
irly
go
od
’ or
‘ve
ry g
oo
d’,
less
th
an
a
qu
art
er
(22
%)
of
com
pa
nie
s d
ep
loy
a ‘l
ife
tim
e u
sag
e’
of
the
ass
et
as
a p
erf
orm
an
ce m
etr
ic f
or
ca
pit
al
inve
stm
en
t p
roje
cts
. Co
nse
qu
en
tly,
ne
arl
y o
ne
in fi
ve
com
pa
nie
s h
ave
ex
pe
rie
nce
d a
n e
arl
y r
ed
un
da
nc
y o
f
an
ass
et.
Th
is fi
gu
re m
ore
th
an
do
ub
led
to
40
% f
or
the
au
tom
oti
ve
se
cto
r, lik
ely
du
e t
o t
he
str
ing
en
t a
nd
ch
an
gin
g d
esi
gn
sta
nd
ard
s in
th
is s
ec
tor.
Me
an
wh
ile,
on
ly 7
% o
f co
mp
an
ies
in b
uild
ing
s a
nd
me
tals
se
cto
r
ha
d a
n e
arl
y r
ed
un
da
nc
y o
f a
sse
t, lik
ely
du
e t
o g
rea
ter
con
sist
en
cy
an
d c
ert
ain
ty in
en
d-p
rod
uc
t, a
nd
less
sho
rt-t
erm
vo
lati
lity
in d
em
an
d.
Co
mp
an
ies
- p
art
icu
larl
y in
th
e a
uto
mo
tive
se
cto
r -
cou
ld b
en
efi
t fr
om
fa
cto
rin
g fl
ex
ibilit
y o
f d
esi
gn
an
d
lon
ge
vit
y m
etr
ics
into
th
eir
ca
pit
al p
roje
cts
an
d b
uilt
ass
et
pla
nn
ing
, an
d a
vo
id c
ost
ly r
ed
un
da
ncie
s o
r
rep
urp
osi
ng
of
ass
ets
.
52%
30%
16%
1%
Agre
e
Disa
gree
Nei
ther
agr
ee
nor d
isagr
eeD
on’t
know
Auto
mot
ive:
60
Build
ing
& M
etal
s: 5
9Ch
emic
al: 7
8En
gine
erin
g: 3
3FM
CG: 6
0H
eavy
Indu
stria
ls: 3
3M
anuf
actu
ring:
55
Phar
mac
eutic
al: 0
Auto
mot
ive:
20
Build
ing
& M
etal
s: 1
8Ch
emic
al: 2
2En
gine
erin
g: 3
3FM
CG: 4
0H
eavy
Indu
stria
ls: 3
3M
anuf
actu
ring:
35
Phar
mac
eutic
al: 5
7
% o
f res
pond
ents
per s
ecto
r%
of r
espo
nden
ts
per s
ecto
r
Ove
rall
resp
onde
nts
Figu
re 4
: Do
you
agre
e or
disa
gree
that
you
r cur
rent
por
tfol
io o
f pro
duct
ion,
dist
ribut
ion
and
othe
r fa
cilit
ies i
s flex
ible
eno
ugh
to m
eet t
he c
halle
nges
faci
ng y
our b
usin
ess?
No
te: F
igu
res
are
ro
un
de
d t
o t
he
ne
are
st w
ho
le n
um
be
r
4.3
SU
ST
AIN
AB
ILIT
Y I
N C
AP
ITA
L P
RO
GR
AM
S
Re
du
cin
g e
nv
iro
nm
en
tal im
pa
ct
is s
ign
ifica
nt
in
de
term
inin
g h
ow
ind
ust
ria
l m
an
ufa
ctu
rin
g c
om
pa
nie
s
ap
pro
ach
ma
jor
ca
pit
al in
ve
stm
en
t p
roje
cts
, acc
ord
ing
to s
ix in
te
n o
f o
ur
resp
on
de
nts
(se
e F
igu
re 5
).
Un
surp
risi
ng
ly, t
his
wa
s si
gn
ifica
nt
for
all
co
mp
an
ies
in t
he
ch
em
ica
ls s
ec
tor,
lik
ely
du
e t
o c
on
sum
er-
facin
g s
ec
tors
be
ing
mo
re e
xp
ose
d t
o r
eg
ula
tory
an
d s
ocie
tal p
ress
ure
s. B
y c
on
tra
st, l
ess
th
an
ha
lf o
f
inte
rvie
we
es
fro
m t
he
bu
ildin
gs
an
d m
eta
ls a
nd
ge
ne
ral
ma
nu
fac
turi
ng
se
cto
rs r
ate
d t
his
as
sig
nifi
ca
nt.
Ye
t fo
r a
ll c
om
pa
nie
s, b
ein
g a
ble
to
de
mo
nst
rate
th
eir
sust
ain
ab
ility
cre
de
nti
als
is in
cre
asi
ng
ly im
po
rta
nt
in
term
s o
f th
eir
ob
lig
ati
on
to
th
eir
cu
sto
me
rs, a
nd
th
e
com
mu
nit
ies
in w
hic
h t
he
y o
pe
rate
, an
d in
ma
na
gin
g
the
ir r
ep
uta
tio
n a
nd
bra
nd
in a
ma
rke
t w
he
re
con
sum
ers
are
incre
asi
ng
ly a
wa
re a
nd
jud
gm
en
tal
of
corp
ora
te s
ocia
l a
nd
en
vir
on
me
nta
l re
spo
nsi
bilit
y.
Co
mp
an
ies
are
incre
asi
ng
ly f
acin
g p
ub
lic s
cru
tin
y
an
d p
ress
ure
to
ac
t re
spo
nsi
bly
.
4.4
SU
PP
LIE
R I
NT
EG
RA
TIO
N A
ND
CO
MM
UN
ICA
TIO
N
Mo
re t
ha
n h
alf
(5
4%
) o
f a
ll r
esp
on
de
nts
ha
ve
an
inte
gra
ted
, en
terp
rise
-wid
e a
pp
roa
ch
to
ma
na
gin
g
sup
plie
r re
lati
on
ship
s, a
nd
52
% p
lan
to
ta
ke a
mo
re
inte
gra
ted
ap
pro
ach
in t
he
ne
xt
thre
e y
ea
rs. T
he
ove
rall
pe
rce
nta
ge
of
ind
ust
ria
l co
mp
an
ies
takin
g
this
ap
pro
ach
wit
h s
up
plie
rs w
as
bro
ug
ht
do
wn
sig
nifi
ca
ntl
y b
y c
om
pa
nie
s in
th
e F
MC
G s
ec
tor.
Th
is is
pe
rha
ps
be
ca
use
FM
CG
co
mp
an
ies
tra
dit
ion
ally
ha
ve
tra
nsa
cti
on
al re
lati
on
ship
s w
ith
su
pp
lie
rs, i
n w
hic
h c
ost
s
are
dri
ve
n d
ow
n o
n in
div
idu
al lin
ks
an
d is
re
fle
cti
ve
of
usi
ng
pro
du
ct-
rela
ted
pro
cu
rem
en
t, w
hic
h t
yp
ica
lly
com
es
fro
m c
lose
loca
les.
Ho
we
ve
r, w
ith
inte
gra
ted
sup
ply
ch
ain
s b
eco
min
g e
sse
nti
al fo
r a
ll m
an
ufa
ctu
rin
g
sec
tors
, th
ere
is a
n o
pp
ort
un
ity
fo
r F
MC
G c
om
pa
nie
s
to d
eve
lop
an
d le
arn
less
on
s fr
om
oth
er
sec
tors
wh
en
loo
kin
g t
o in
teg
rate
wit
h s
up
plie
rs, f
or
lon
ge
r te
rm,
mo
re m
utu
ally
be
ne
ficia
l re
lati
on
ship
s.
Su
pp
ort
ing
th
is t
ren
d, t
ho
se c
om
pa
nie
s th
at
rep
ort
ed
usi
ng
pe
rfo
rma
nce
me
tric
s w
ith
su
pp
lie
rs, b
rie
fin
g
sup
plie
rs o
n p
roje
ct
ob
jec
tive
s a
nd
tra
inin
g s
up
plie
rs
on
he
alt
h a
nd
sa
fety
sta
nd
ard
s, a
ll r
ep
ort
ed
mo
re
con
fid
en
ce in
RO
I, s
av
ing
s d
elive
red
, sp
ee
d t
o
ma
rke
t, q
ua
lity
of
ou
tco
me
s a
nd
lon
ge
vit
y o
f a
sse
t
pe
rfo
rma
nce
of
bu
ilt a
sse
t p
ort
folio
s.
Ove
rall
, th
ere
is r
oo
m f
or
imp
rove
me
nt
in m
an
ufa
ctu
rer
-su
pp
lie
r a
lig
nm
en
t. L
ess
th
an
ha
lf (4
8%
) sh
are
th
eir
bu
sin
ess
go
als
wit
h t
he
ir s
up
plie
rs, a
nd
on
ly 5
7%
sh
are
the
ir p
roje
ct
go
als
wit
h t
he
m (
see
Fig
ure
6).
Th
is c
an
resu
lt in
an
ass
et
tha
t is
no
t su
ita
ble
fo
r th
e e
nd
-
pro
cess
. Th
is n
ee
d f
or
imp
rove
me
nt
is s
up
po
rte
d b
y
the
less
th
an
a t
hir
d (
30
%)
of
com
pa
nie
s st
ati
ng
th
at
the
y b
elie
ve
th
ey
are
‘go
od
at
de
leg
ati
ng
au
tho
rity
to
sup
plie
rs f
or
the
m t
o a
ct
eff
ec
tive
ly o
n t
he
ir b
eh
alf
’. T
he
en
gin
ee
rin
g s
ec
tor
ha
s a
pa
rtic
ula
r g
ap
in d
ele
ga
tin
g
au
tho
rity
to
su
pp
lie
rs, w
ith
50
% o
f co
mp
an
ies
rati
ng
the
ir p
erf
orm
an
ce a
s ‘p
oo
r’ a
nd
17
% r
ati
ng
it a
s
‘ve
ry p
oo
r’. T
his
is lik
ely
du
e t
o y
ea
rs o
f tr
an
sac
tio
na
l
rela
tio
nsh
ips
wit
h s
up
plie
rs in
th
is s
ec
tor,
in w
hic
h
squ
ee
zin
g c
ost
s h
ave
his
tori
ca
lly
ca
use
d s
ub
-op
tim
al
sup
ply
ch
ain
s, w
he
re s
up
plie
rs a
re o
nly
re
spo
nsi
ve
to o
rde
rs.
In c
on
tra
st, o
ur
rese
arc
h s
ho
ws
tha
t clie
nts
in t
he
au
tom
oti
ve
ind
ust
ry a
re g
en
era
lly
ah
ea
d o
f o
the
r
sec
tors
in c
oll
ab
ora
tive
be
ha
vio
rs w
ith
su
pp
lie
rs, a
nd
this
se
cto
r a
lso
fa
vo
red
glo
ba
l su
pp
ly p
art
ne
rs. T
his
is lik
ely
du
e t
o a
n in
du
stry
-wid
e c
ult
ure
of
pa
rtn
eri
ng
tha
t h
as
be
en
bu
ilt o
ve
r th
e la
st 1
0-1
5 y
ea
rs, w
he
re t
he
be
ne
fits
of
pa
rtn
eri
ng
ha
ve
be
en
wid
ely
do
cu
me
nte
d.
Fo
r e
xa
mp
le p
art
s th
at
we
re o
nce
ma
de
on
sit
e b
y t
he
ma
nu
fac
ture
r a
re n
ow
pro
du
ced
off
-sit
e b
y s
up
plie
rs
an
d s
imp
ly fi
tte
d o
n s
ite
, als
o it
is n
ot
un
usu
al fo
r
au
tom
oti
ve
co
mp
an
ies
to e
ve
n o
uts
ou
rce
R&
D
to s
up
plie
rs.
We
ob
serv
e t
he
ta
ng
ible
pro
gre
ss t
ha
t h
as
be
en
ma
de
in m
an
ufa
ctu
rin
g s
ec
tors
in r
ece
nt
ye
ars
to
em
bra
ce
mo
re s
ust
ain
ab
le a
pp
roa
ch
es.
Ho
we
ve
r, o
ur
ex
pe
rie
nce
sho
ws
tha
t fo
r so
me
co
mp
an
ies
sust
ain
ab
ilit
y r
em
ain
s
in t
en
sio
n w
ith
co
mm
erc
iality
, ra
the
r th
an
be
ing
com
ple
me
nta
ry. B
uilt
ass
ets
wh
ich
use
less
en
erg
y
or
wa
ter
no
t o
nly
re
du
ce e
nv
iro
nm
en
tal a
nd
so
cia
l
imp
ac
t, b
ut
als
o r
ed
uce
op
era
tin
g c
ost
s.
Su
sta
ina
bilit
y a
lso
inclu
de
s ch
oo
sin
g t
he
rig
ht
loca
tio
ns
for
facilit
ies,
fa
cto
rin
g in
pro
xim
ity
to
th
e s
up
ply
ch
ain
, a
skill
ed
la
bo
r fo
rce
, acc
ess
to
su
sta
ina
ble
en
erg
y s
ou
rce
s
an
d, v
ita
lly,
wh
ere
th
eir
cu
sto
me
rs a
re lo
ca
ted
; wh
ich
ma
y a
lso
be
mo
re c
ost
-effi
cie
nt
for
the
bu
sin
ess
.
Co
mp
an
ies
mu
st c
on
sid
er
all
of
ele
me
nts
of
the
ir s
ocia
l,
en
vir
on
me
nta
l a
nd
eco
no
mic
imp
ac
t. A
lon
g-t
erm
com
mit
me
nt
to s
ust
ain
ab
le a
sse
ts n
ee
ds
to e
xte
nd
to
the
wh
ole
-lif
e im
pa
ct
of
ca
pit
al p
roje
cts
, in
clu
din
g
ass
et
de
com
mis
sio
nin
g a
nd
re
ge
ne
rati
on
.
Sign
ifica
nt
Not
sign
ifica
nt
Som
ewha
t
Auto
mot
ive:
0Bu
ildin
g &
Met
als:
35
Chem
ical
: 0En
gine
erin
g: 3
3FM
CG: 2
0H
eavy
Indu
stria
ls: 0
Man
ufac
turin
g: 2
5Ph
arm
aceu
tical
: 71
Auto
mot
ive:
80
Build
ing
& M
etal
s: 4
1Ch
emic
al: 1
00En
gine
erin
g: 5
0FM
CG: 8
0H
eavy
Indu
stria
ls: 1
00M
anuf
actu
ring:
45
Phar
mac
eutic
al: 2
9
Auto
mot
ive:
20
Build
ing
& M
etal
s: 2
4Ch
emic
al: 0
Engi
neer
ing:
17
FMCG
: 0H
eavy
Indu
stria
ls: 0
Man
ufac
turin
g: 3
0Ph
arm
aceu
tical
: 0
58%
26%
16%
% o
f res
pond
ents
per s
ecto
r%
of r
espo
nden
ts
per s
ecto
r
% o
f res
pond
ents
pe
r sec
tor
Ove
rall
resp
onde
nts
Figu
re 5
: How
sign
ifica
nt is
redu
cing
env
ironm
enta
l im
pact
in d
eter
min
ing
how
you
app
roac
h m
ajor
ca
pita
l inv
estm
ent p
roje
cts?
"On
e s
ho
uld
no
t o
nly
en
ter
into
pro
jec
t-b
ase
d
rela
tio
nsh
ips,
bu
t a
lso
bu
ild
lon
g-t
erm
rela
tio
nsh
ips."
Auto
mot
ive,
G
erm
any
"Th
e b
igg
est
ch
an
ge
[in
ca
pit
al
pro
gra
ms]
is
to b
e m
ore
an
d b
ett
er
inte
gra
ted
wit
h o
ur
pro
vid
ers
. It
wil
l b
e d
on
e
to u
nif
y t
he
ob
jec
tiv
es
an
d
pro
ce
sse
s."
Build
ing
& M
etal
s, S
pain
No
te: F
igu
res
are
ro
un
de
d t
o t
he
ne
are
st w
ho
le n
um
be
r
A la
ck o
f su
pp
ly c
ha
in in
teg
rati
on
ca
n le
ad
to
se
rio
us
pro
ble
ms.
No
t sh
ari
ng
bu
sin
ess
an
d p
roje
ct
go
als
wit
h s
up
plie
rs is
co
rre
late
d t
o o
ne
in t
hre
e c
om
pa
nie
s
rep
ort
ing
th
ey
ha
d a
sig
nifi
ca
nt
dis
pu
te w
ith
a s
up
plie
r
wit
hin
th
e la
st t
wo
ye
ars
. It
als
o c
on
trib
ute
s to
th
e 2
3%
rep
ort
ed
fa
ilure
s in
ca
pit
al p
roje
cts
du
e t
o is
sue
s w
ith
the
ir s
up
ply
ch
ain
. Th
is is
fu
rth
er
ev
ide
nce
d b
y t
he
la
ck
of
dis
pu
tes
rep
ort
ed
by
co
mp
an
ies
in t
he
au
tom
oti
ve
sec
tor,
wh
o w
e h
ave
alr
ea
dy
se
en
are
lea
din
g t
he
wa
y in
sup
ply
ch
ain
inte
gra
tio
n.
Ove
rall
, oth
er
sec
tors
co
uld
lea
rn f
rom
th
e a
uto
mo
tive
sec
tor
in b
ett
er
inte
gra
tin
g s
up
plie
rs in
to t
he
ir v
alu
e
ch
ain
of
ge
ttin
g p
rod
uc
t to
ma
rke
t to
avo
id d
isp
ute
s
an
d t
ime
or
cost
ove
rru
ns.
In
sim
ple
te
rms,
su
cce
ssfu
l
ou
tco
me
-ori
en
ted
co
mp
an
ies
alig
n t
he
ir e
nti
re s
up
ply
ch
ain
s to
bu
sin
ess
go
als
an
d t
o t
he
en
d-c
ust
om
er;
a
fun
da
me
nta
l ch
ara
cte
rist
ic o
f b
ein
g 'c
ust
om
er-
focu
sed
'.
4.5
IN
TE
RN
AL
ST
AK
EH
OL
DE
R E
NG
AG
EM
EN
T
Just
ove
r h
alf
(5
4%
) o
f co
mp
an
ies
rep
ort
ed
th
at
the
y
we
re g
oo
d a
t e
ng
ag
ing
th
eir
inte
rna
l st
ake
ho
lde
rs
wh
en
pla
nn
ing
an
d d
elive
rin
g t
he
ir c
ap
ita
l in
ve
stm
en
t
pro
gra
ms,
wh
ile 3
9%
we
re u
ncle
ar
ab
ou
t h
ow
we
ll t
he
y
do
th
is (
see
Fig
ure
7).
Inte
rna
l st
ake
ho
lde
rs c
an
be
vie
we
d a
s th
e b
igg
est
ba
rrie
rs t
o c
ap
ita
l p
roje
ct
succ
ess
– a
cti
ng
as
blo
cke
rs t
o
fun
ds
or
pro
cess
. Un
surp
risi
ng
ly, t
he
leve
l o
f co
nfi
de
nce
in a
pp
roa
ch
to
en
ga
gin
g in
tern
al st
ake
ho
lde
rs
sig
nifi
ca
ntl
y c
orr
ela
ted
wit
h r
ep
ort
ed
co
nfi
de
nce
tha
t th
e b
oa
rd v
iew
s th
eir
bu
ilt a
sse
t p
ort
folio
as
a
sig
nifi
ca
nt
dri
ve
r o
f v
alu
e in
th
eir
bu
sin
ess
.
In r
ea
lity
on
ce f
un
din
g is
sig
ne
d o
ff, t
ho
se in
ch
arg
e
of
de
live
rin
g t
he
ca
pit
al p
roje
ct
ca
n f
ee
l re
mo
te
fro
m t
he
org
an
iza
tio
n. O
ne
wa
y t
o c
ou
nte
rac
t th
is
Inte
gra
tio
n o
f su
pp
lie
rs is
ke
y t
o s
ecu
rin
g t
he
be
st
ou
tco
me
s fo
r a
ll in
vo
lve
d. I
t ta
kes
com
mit
me
nt
of
tim
e a
nd
eff
ort
fro
m a
ll p
art
ies
to m
ake
it a
su
cce
ss.
All
ha
ve
to
un
de
rsta
nd
th
e p
roce
sse
s, s
yst
em
s a
nd
wa
ys
of
wo
rkin
g a
nd
it is
imp
era
tive
to
ha
ve
a c
ult
ura
l
con
ne
cti
on
. Th
is is
no
t o
nly
du
e t
o t
he
issu
es
of
bra
nd
pro
tec
tio
n, b
ut
als
o b
eca
use
a s
ucc
ess
ful p
art
ne
rsh
ip
relie
s o
n a
ll p
art
ies
ha
vin
g a
cce
ss t
o t
he
rig
ht
info
rma
tio
n a
nd
be
ing
cle
ar
on
ob
jec
tive
s to
se
cu
re
the
be
st r
etu
rns
an
d e
fficie
ncie
s. Im
ple
me
nta
tio
n u
nit
s
ca
n o
fte
n k
ee
p t
he
ir c
ard
s clo
se t
o t
he
ir c
he
sts
an
d in
do
ing
so
let
sup
plie
rs w
ork
in t
he
wro
ng
dir
ec
tio
n w
he
n
a d
esi
gn
ch
an
ge
ma
y b
e n
ee
de
d. A
s w
e s
aw
in o
ur
20
16
rep
ort
‘Ca
taly
st f
or
Ch
an
ge
’, w
hic
h lo
oke
d s
pe
cifi
ca
lly
at
the
ch
em
ica
l a
nd
ph
arm
ace
uti
ca
l in
du
stri
es,
inte
gra
tin
g
the
su
pp
ly c
ha
in r
eq
uir
es
a c
ult
ura
l sh
ift
wit
hin
a
bu
sin
ess
an
d t
his
is a
big
ch
an
ge
fo
r th
ose
wh
o a
re
ne
we
r to
a p
art
ne
rsh
ip b
ase
d m
od
el.
is t
o e
nsu
re t
ha
t th
ose
ou
tsid
e o
f th
e p
roje
ct
rem
ain
invo
lve
d a
nd
en
ga
ge
me
nt
is m
ain
tain
ed
th
rou
gh
ou
t,
to im
pro
ve
th
e o
ve
rall
ou
tco
me
of
the
pro
jec
t. F
or
ex
am
ple
, wh
en
bu
ildin
g a
ma
nu
fac
turi
ng
pla
nt
ho
usi
ng
mu
ltip
le b
usi
ne
ss u
nit
s, b
est
pra
cti
ce is
to
en
ga
ge
rep
rese
nta
tive
s fr
om
ea
ch
un
it a
nd
ke
ep
th
em
en
ga
ge
d
thro
ug
ho
ut
the
pro
jec
t to
en
sure
th
e r
esu
ltin
g a
sse
t is
fit
for
pu
rpo
se a
nd
do
esn
’t r
eq
uir
e a
co
stly
re
de
sig
n.
Fa
ilure
to
en
ga
ge
inte
rna
l st
ake
ho
lde
rs r
ed
uce
s
sup
po
rt, fi
na
ncin
g a
nd
ap
pro
va
l o
f ca
pit
al in
ve
stm
en
ts
for
pro
jec
ts, a
nd
, at
wo
rst,
ca
n c
au
se in
tern
al
sta
keh
old
ers
to
blo
ck p
rog
ress
or
hin
de
r su
cce
ss o
f
ca
pit
al p
roje
cts
.
Pharmaceutical
Overall
Manufacturing
Heavy Industrials
FMCG
Engineering
Chemicals
Building and Metals
Automotive
020406080100
Very
goo
d
Fairl
y go
od
Nei
ther
goo
d no
r poo
r
Fairl
y po
or
Very
poo
r
Don
't kn
ow
Figu
re 7
: How
wou
ld y
ou ra
te y
our c
urre
nt a
ppro
ach
to e
ngag
ing
inte
rnal
st
akeh
olde
rs in
pla
nnin
g an
d de
liver
ing
capi
tal i
nves
tmen
t pro
gram
s?Fi
gure
6: F
or e
ach
of th
e fo
llow
ing,
ple
ase
say
whe
ther
it a
pplie
s or d
oes n
ot a
pply
to h
ow y
our o
rgan
izat
ion
man
ages
rela
tions
hips
with
supp
liers
020
4060
8010
0
020
4060
8010
0
020
4060
8010
0
020
4060
8010
0
020
4060
8010
0
67%
59%
53%
45%
47%
22%
75%
51%
30%
3% 1% 1% 3% 3%
Don
't kn
owD
oes n
ot
appl
y A
pplie
s
We
trai
n ou
r sup
plie
rs o
n he
alth
and
safe
ty st
anda
rds
10
0%
OF
AU
TO
MO
TIV
E /
FM
CG
/ H
EA
VY
IN
DU
ST
RIA
LS
PA
RT
ICIP
AN
TS
SA
ID T
HIS
ST
AT
EM
EN
T A
PP
LIE
S
We
trai
n ou
r sup
plie
rs o
n ou
r des
ign
stan
dard
s
We
shar
e sy
stem
atic
ally
ove
rall
proj
ect g
oals
with
our
supp
liers
We
shar
e sy
stem
atic
ally
our
wid
er b
usin
ess g
oals
with
our
supp
liers
We
have
had
a fa
ilure
in a
cap
ital i
nves
tmen
t pro
ject
due
to is
sues
in o
ur su
pply
cha
in in
the
last
3 y
ears
80
% O
F A
UT
OM
OT
IVE
/ F
MC
G P
AR
TIC
IPA
NT
S S
AID
TH
IS S
TA
TE
ME
NT
AP
PL
IES
70
% O
F M
AN
UF
AC
TU
RIN
G P
AR
TIC
IPA
NT
S S
AID
TH
IS S
TA
TE
ME
NT
AP
PL
IES
80
% O
F A
UT
OM
OT
IVE
PA
RT
ICIP
AN
TS
SA
ID T
HIS
ST
AT
EM
EN
T A
PP
LIE
S
33
% O
F E
NG
INE
ER
ING
/ H
EA
VY
IN
DU
ST
RIA
LS
PA
RT
ICIP
AN
TS
SA
ID T
HIS
ST
AT
EM
EN
T A
PP
LIE
S
40%
"Th
e
sta
ke
ho
lde
rs
sh
ou
ld b
e
inv
olv
ed
at
an
ea
rlie
r st
ag
e
an
d m
ore
inte
nsiv
ely
."
Auto
mot
ive,
G
erm
any
No
te: F
igu
res
are
ro
un
de
d t
o t
he
ne
are
st w
ho
le n
um
be
r
No
te: F
igu
res
are
ro
un
de
d t
o t
he
ne
are
st w
ho
le n
um
be
r
4.6
CE
NT
RA
LIZ
AT
ION
Th
e b
igg
er
an
d m
ore
co
mp
lex
th
e o
rga
niz
ati
on
, th
e
ha
rde
r it
ca
n b
e t
o u
nd
ers
tan
d w
he
re d
ecis
ion
ma
kin
g
sits
. In
so
me
se
cto
rs d
ecis
ion
s a
re p
red
om
ina
ntl
y m
ad
e
at
a g
lob
al le
ve
l w
he
rea
s in
oth
ers
it is
sp
lit
be
twe
en
glo
ba
l a
nd
loca
l te
am
s.
Mo
re t
ha
n s
ix in
te
n (
62
%)
com
pa
nie
s a
cro
ss a
ll s
ec
tors
ma
ke d
ecis
ion
s a
bo
ut
the
ir c
ap
ita
l in
ve
stm
en
t p
roje
cts
cen
tra
lly
(se
e F
igu
re 8
). T
he
he
av
y in
du
stri
al se
cto
r
lea
ds
the
wa
y in
th
is t
ren
d, w
ith
all
re
spo
nd
en
ts f
rom
this
se
cto
r re
po
rtin
g t
ha
t th
ese
de
cis
ion
s a
re m
ad
e
cen
tra
lly.
Th
is is
lik
ely
re
fle
cti
ve
of
the
hig
hly
ca
pit
al
inte
nsi
ve
na
ture
of
this
se
cto
r. M
ea
nw
hile
, FM
CG
wa
s
the
se
cto
r th
at
did
no
t fu
lly
re
fle
ct
this
tre
nd
to
wa
rd
cen
tra
liza
tio
n, w
he
re o
nly
on
e in
five
co
mp
an
ies
rep
ort
ed
to
ma
kin
g d
ecis
ion
s o
n c
ap
ita
l in
ve
stm
en
t
pro
jec
ts c
en
tra
lly.
Ove
rall
, th
e t
ren
d t
ow
ard
ce
ntr
aliz
ed
de
cis
ion
-ma
kin
g
ha
s b
eco
me
em
be
dd
ed
in t
he
ma
jori
ty o
f se
cto
rs:
89
% o
f e
xe
cu
tive
s sa
y t
he
ir c
om
pa
ny
ha
s a
ce
ntr
al
en
terp
rise
-wid
e in
ve
stm
en
t b
oa
rd.
4.7
TH
E W
AR
FO
R T
AL
EN
T
Th
e t
ren
d t
ow
ard
th
is a
pp
roa
ch
is a
lre
ad
y y
ield
ing
resu
lts;
a h
ug
e 8
4%
re
spo
nd
en
ts w
ho
to
ok d
ecis
ion
s
cen
tra
lly
re
po
rte
d g
oo
d p
erf
orm
an
ce o
n s
av
ing
s
de
live
red
of
bu
ilt a
sse
t p
ort
folio
s, c
om
pa
red
to
71
%
wh
o t
oo
k d
ecis
ion
s a
t a
bu
sin
ess
-un
it o
r re
gio
na
l le
ve
l.
Th
is im
pro
ve
d p
erf
orm
an
ce is
lik
ely
su
pp
ort
ed
by
th
e
hig
h le
ve
ls o
f v
isib
ilit
y o
f ca
pit
al p
roje
ct
an
d b
uilt
ass
et
po
rtfo
lio
s re
po
rte
d a
cro
ss a
ll s
ec
tors
– w
hic
h is
ke
y t
o
ma
kin
g in
form
ed
de
cis
ion
s. S
eve
n in
te
n r
esp
on
de
nts
als
o r
ep
ort
ed
th
at
the
ir c
om
pa
ny
ha
s a
de
taile
d
pic
ture
at
ind
ivid
ua
l a
sse
t le
ve
l o
f th
eir
pro
du
cti
on
an
d
dis
trib
uti
on
fa
cilit
ies
acro
ss t
he
en
terp
rise
.
Fu
rth
erm
ore
, 81
% o
f e
xe
cu
tive
s re
po
rt t
ha
t th
ey
ha
ve
‘go
od
’ vis
ibilit
y o
f a
ll p
rod
uc
tio
n, d
istr
ibu
tio
n a
nd
oth
er
facilit
ies
cost
s a
t ce
ntr
al, e
nte
rpri
se-w
ide
leve
l.
Cle
arl
y, q
ua
lity
de
cis
ion
s re
qu
ire
go
od
vis
ibilit
y o
f th
e
ch
all
en
ge
in h
an
d. T
he
pa
rad
ox
is t
ha
t In
du
stry
4.0
an
d
cy
be
r-p
hy
sica
l sy
ste
ms
de
ma
nd
de
cen
tra
lize
d d
ecis
ion
ma
kin
g, b
ut
ou
r re
sea
rch
ma
kes
cle
ar
tha
t to
be
succ
ess
ful, c
ap
ita
l p
rog
ram
s a
nd
bu
ilt a
sse
t p
ort
folio
s
req
uir
e a
ho
listi
c v
iew
.
To
ma
xim
ize
th
e b
en
efi
ts o
f ce
ntr
al d
ecis
ion
-ma
kin
g,
tho
rou
gh
en
ga
ge
me
nt
wit
h b
usi
ne
ss u
nit
s is
ess
en
tia
l
to s
ecu
re a
lig
nm
en
t, u
nd
ers
tan
din
g a
nd
ad
op
tio
n o
f
the
de
cis
ion
s re
ach
ed
.
“A l
ot
of
pe
op
le a
re
reti
rin
g, a
nd
the
re is
a
sh
ort
ag
e o
f
yo
un
g t
ale
nt
in t
his
fie
ld”
Chem
ical
s, th
e N
ethe
rland
s
"Pro
fess
ion
al
tale
nt
is r
ela
tiv
ely
less
er.
Yo
un
g
un
ive
rsit
y
gra
du
ate
s h
av
e
hig
he
r m
ob
ilit
y
[wh
ich
ma
ke
s it
mo
re d
iffic
ult
to
rec
ruit
an
d r
eta
in
tale
nt
to d
eli
ve
r
ca
pit
al
pro
gra
ms]
"
Man
ufac
turin
g,
Chin
a
Re
cru
itin
g q
ua
lity
ta
len
t w
as
ide
nti
fie
d a
s th
e s
eco
nd
mo
st im
po
rta
nt
ch
all
en
ge
fo
r a
ll s
ec
tors
. 42
% o
f
exe
cu
tive
s re
po
rte
d t
ha
t fi
nd
ing
th
e r
igh
t ta
len
t h
ad
be
com
e m
ore
diffi
cu
lt o
ve
r th
e p
ast
th
ree
ye
ars
, wh
ile
29
% s
ay
it r
em
ain
s u
nch
an
ge
d (
see
Fig
ure
9).
Cru
cia
lly,
mo
re t
ha
n h
alf
(5
6%
) o
f re
spo
nd
en
ts s
ay
it is
‘diffi
cu
lt’ t
o r
ecru
it a
nd
re
tain
th
e r
igh
t p
eo
ple
to
pla
n
an
d d
elive
r ca
pit
al in
ve
stm
en
t p
rog
ram
s; f
or
mo
re
tha
n o
ne
in t
en
, it
is ‘v
ery
diffi
cu
lt’.
Th
e a
uto
mo
tive
an
d
FM
CG
se
cto
rs r
ep
ort
be
ing
pa
rtic
ula
rly
ch
all
en
ge
d in
recru
itin
g t
ale
nt
for
the
ir c
ap
ita
l d
elive
ry p
roje
cts
.
Ma
nu
fac
turi
ng
co
mp
an
ies
no
t o
nly
ne
ed
to
inve
st in
the
ir b
uilt
ass
ets
to
cre
ate
ap
pe
alin
g w
ork
pla
ces
tha
t
att
rac
t th
e t
ale
nt
the
y r
eq
uir
e, b
ut
the
y a
lso
ne
ed
skill
ed
, sp
ecia
list
wo
rkfo
rce
s to
de
live
r a
nd
op
era
te
the
se b
uilt
ass
ets
.
On
e is
sue
, pa
rtic
ula
rly
in a
uto
mo
tive
, is
tha
t th
e t
yp
e
of
tale
nt
req
uir
ed
is c
ha
ng
ing
. As
we
ha
ve
se
en
, th
ere
is n
ow
a n
ee
d f
or
tho
se in
vo
lve
d in
ca
pit
al p
roje
cts
to
un
de
rsta
nd
ne
w a
pp
roa
ch
es
inclu
din
g t
ech
no
log
ies
an
d
sup
ply
ch
ain
ma
na
ge
me
nt.
As
a r
esu
lt c
om
pa
nie
s m
ay
ne
ed
to
co
nsi
de
r re
cru
itin
g f
rom
are
as
oth
er
tha
n t
he
ir
tra
dit
ion
al ro
ute
s.
16%
38%
42%
3%
Easie
r
Not
cha
nged
Mor
e di
fficu
lt
Don
’t kn
ow
Auto
mot
ive:
80
Build
ing
& M
etal
s: 4
7Ch
emic
al: 6
7En
gine
erin
g: 1
7FM
CG: 4
0H
eavy
Indu
stria
ls: 0
Man
ufac
turin
g: 3
5Ph
arm
aceu
tical
: 29
Auto
mot
ive:
20
Build
ing
& M
etal
s: 6
Chem
ical
: 11
Engi
neer
ing:
50
FMCG
: 20
Hea
vy In
dust
rials
: 67
Man
ufac
turin
g: 1
5Ph
arm
aceu
tical
: 0
Auto
mot
ive:
0Bu
ildin
g &
Met
als:
41
Chem
ical
: 22
Engi
neer
ing:
33
FMCG
: 40
Hea
vy In
dust
rials
: 0M
anuf
actu
ring:
50
Phar
mac
eutic
al: 7
1
% o
f res
pond
ents
per s
ecto
r%
of r
espo
nden
ts
per s
ecto
r
% o
f res
pond
ents
pe
r sec
tor
Ove
rall
resp
onde
nts
Cent
rally
It va
ries
Busin
ess u
nit o
r re
gion
al le
vel
Auto
mot
ive:
0Bu
ildin
g &
Met
als:
24
Chem
ical
: 11
Engi
neer
ing:
33
FMCG
: 40
Hea
vy In
dust
rials
: 0M
anuf
actu
ring:
35
Phar
mac
eutic
al: 1
4
Auto
mot
ive:
60
Build
ing
& M
etal
s: 7
1Ch
emic
al: 7
8En
gine
erin
g: 6
7FM
CG: 2
0H
eavy
Indu
stria
ls: 1
00M
anuf
actu
ring:
55
Phar
mac
eutic
al: 8
6
64%
23%
12%
% o
f res
pond
ents
per s
ecto
r%
of r
espo
nden
ts
per s
ecto
r
Ove
rall
resp
onde
nts
Figu
re 9
: Has
recr
uitin
g an
d re
tain
ing
the
right
peo
ple
to p
lan
and
deliv
er y
our c
apita
l inv
estm
ent
prog
ram
s bec
ome
easie
r, m
ore
diffi
cult,
or n
ot c
hang
ed o
ver t
he p
ast f
ew y
ears
?
Figu
re 8
: Wha
t bes
t des
crib
es th
e w
ay y
our c
ompa
ny m
akes
dec
ision
s on
sign
ifica
nt c
apita
l inv
estm
ent p
roje
cts?
“T
he
big
ge
st
ch
an
ge
(in
de
liv
eri
ng
ca
pit
al
pro
gra
ms)
wil
l
be
ed
uc
ate
d
sta
ke
ho
lde
rs;
we
are
cu
rre
ntl
y
ed
uc
ati
ng
all
of
ou
r sta
ke
ho
lde
rs
ab
ou
t th
eir
un
de
rsta
nd
ing
of
the
glo
ba
l
pic
ture
, a
s
cu
rre
ntl
y t
he
y
ma
ke
ma
ny
de
cis
ion
s b
ase
d
on
th
e l
oc
al
pic
ture
in
ste
ad
of
the
big
pic
ture
.”
FMCG
, U
SA
Fo
r m
an
y s
ec
tors
, se
cto
r-sp
ecifi
c e
xp
eri
en
ce is
a
pre
-re
qu
isit
e w
he
n fi
nd
ing
th
e r
igh
t ta
len
t fo
r ca
pit
al
de
live
ry, p
art
icu
larl
y w
he
n d
elive
rin
g m
an
ufa
ctu
rin
g
facilit
ies
as
pro
cess
es
ne
ed
to
be
un
de
rsto
od
to
ho
use
the
m c
orr
ec
tly.
Wit
h a
n a
gin
g t
ale
nt
po
ol fo
r d
elive
rin
g
ca
pit
al p
rog
ram
s w
ho
are
loo
kin
g t
o r
eti
re, a
nd
a la
ck
of
yo
un
ge
r ta
len
t e
nte
rin
g t
he
ind
ust
ry, t
his
issu
e is
be
co
min
g e
ve
r m
ore
re
lev
an
t.
Wit
h t
he
su
pp
ly c
ha
in f
acin
g t
he
sa
me
co
ntr
ain
ts o
n
tale
nt,
inte
gra
tio
n b
eco
me
s e
ve
n m
ore
imp
ort
an
t fo
r
all
pa
rtie
s b
eca
use
, as
go
od
-qu
ality
ta
len
t b
eco
me
s
sca
rce
r, a
ll w
ill f
ace
incre
ase
d s
ala
ry c
ost
s a
nd
fa
ilure
to
att
rac
t th
e b
est
re
cru
its
will
lea
ve
pro
jec
ts s
usc
ep
tib
le
to d
ela
ys
an
d, i
n e
xtr
em
e c
ase
s, f
aile
d c
ap
ita
l p
roje
cts
.
No
te: F
igu
res
are
ro
un
de
d t
o t
he
ne
are
st w
ho
le n
um
be
r
No
te: F
igu
res
are
ro
un
de
d t
o t
he
ne
are
st w
ho
le n
um
be
r
5. S
EVEN
STE
PS
- TH
E RO
UTE
TO
SU
CCES
S D
raw
ing
on th
e ex
pert
ise a
nd k
now
ledg
e fr
om A
rcad
is’ In
dust
rial a
nd P
rogr
am
Man
agem
ent e
xper
ts, a
nd th
e in
sight
s sha
red
by th
e in
terv
iew
par
ticip
ants
, we
have
out
lined
a se
ven-
step
solu
tion
for m
anuf
actu
rers
:
STEP
1: M
on
ito
r a
nd
im
pro
ve
pe
rfo
rma
nce
th
rou
gh
in
du
str
y b
en
ch
ma
rkin
g a
nd
pe
rfo
rma
nce
m
an
ag
em
en
t
As
com
pa
nie
s e
mb
race
a m
ore
ce
ntr
aliz
ed
ap
pro
ach
to
ca
pit
al d
elive
ry, a
cce
ss t
o a
ccu
rate
, co
nsi
ste
nt
pe
rfo
rma
nce
da
ta b
eco
me
s e
ve
r m
ore
imp
ort
an
t.
Pu
ttin
g t
he
rig
ht
lea
d a
nd
la
g p
erf
orm
an
ce in
dic
ato
rs in
p
lace
, an
d t
rackin
g a
nd
re
po
rtin
g t
he
se c
orr
ec
tly
is t
he
b
asi
s o
f a
mo
re r
esp
on
sive
, pro
ac
tive
ca
pit
al d
elive
ry
fun
cti
on
. Uti
lizin
g in
du
stry
be
nch
ma
rkin
g, c
on
stru
cti
on
a
na
lyti
cs
an
d c
ost
pro
filin
g t
oo
ls h
elp
to
cre
ate
a
pe
rfo
rma
nce
cu
ltu
re a
nd
dri
ve
do
wn
co
sts.
Ad
dit
ion
ally,
Ca
pit
al D
elive
ry L
ea
de
rs m
ust
be
wa
ry o
f o
pti
mis
m b
ias
wh
ich
ma
ny
Pro
jec
t M
an
ag
ers
inh
ere
ntl
y
ho
ld. I
mp
lem
en
tin
g a
mo
re e
vid
en
ce-b
ase
d a
pp
roa
ch
to
ris
k m
an
ag
em
en
t a
nd
bu
sin
ess
ca
ses,
an
d c
ho
osi
ng
m
an
ag
em
en
t st
yle
s w
ith
ris
k m
an
ag
em
en
t a
t th
e c
ore
ca
n h
elp
re
du
ce p
roje
ct
tim
e a
nd
co
st o
ve
rru
ns,
an
d
en
sure
co
mp
an
ies
are
pre
pa
red
fo
r e
me
rgin
g r
isk
s
acro
ss t
he
ir p
ort
folio
s.
STEP
2: C
on
sid
er
the
wh
ole
ass
et
life
cy
cle
an
d p
ut
de
sig
n a
t th
e c
en
ter
to im
pro
ve
fle
xib
ilit
y a
nd
ag
ilit
y
Wh
en
pla
nn
ing
bu
ilt a
sse
t ca
pit
al p
rog
ram
s,
com
pa
nie
s n
ee
d t
o c
on
sid
er
the
wh
ole
ass
et
life
cycle
– f
rom
co
nce
pti
on
to
re
pu
rpo
sin
g, r
igh
t th
rou
gh
to
d
eco
mm
issi
on
ing
.
Em
be
dd
ing
fle
xib
ilit
y a
t th
e h
ea
rt o
f b
uilt
ass
et
de
sig
n
ca
n le
ng
the
n a
sse
t life
-cycle
s a
nd
re
du
ce c
ost
s w
he
n
the
ine
vit
ab
le r
e-p
urp
osi
ng
occ
urs
.
Co
mp
an
ies
tha
t m
ap
ou
t th
e f
utu
re, m
akin
g u
se o
f p
rob
ab
ility
-ba
sed
de
cis
ion
su
pp
ort
to
ols
, ca
n g
rea
tly
im
pro
ve
de
cis
ion
ma
kin
g, m
itig
ate
ris
ks
to o
bso
lesc
e o
r a
bo
rtiv
e c
ost
s.
Te
ch
no
log
ies
like
BIM
su
pp
ort
th
is a
pp
roa
ch
by
p
rov
idin
g in
form
ati
on
on
th
e lif
ec
ycle
of
the
ass
ets
. W
ork
ing
ba
ck
wa
rds
du
rin
g t
he
de
sig
n p
roce
ss, B
IM
all
ow
s a
sse
t o
wn
ers
to
sta
rt o
pti
miz
ing
th
eir
ass
ets
fr
om
th
e v
ery
be
gin
nin
g, w
hile
se
cu
rin
g t
he
av
aila
bilit
y
an
d r
elia
bilit
y o
f th
e a
sse
t in
form
ati
on
du
rin
g t
he
life
cycle
fo
r fu
rth
er
op
tim
iza
tio
n d
uri
ng
op
era
tio
ns.
Ad
dit
ion
ally,
usi
ng
to
tal co
st o
f o
wn
ers
hip
to
ols
ca
n
be
st d
em
on
stra
te lo
ng
te
rm r
isk
s a
nd
lia
bilit
ies.
STEP
3: U
tili
ze
a s
ust
ain
ab
le a
pp
roa
ch
to
c
ap
ita
l in
ve
stm
en
ts
Su
sta
ina
bilit
y o
f ca
pit
al in
ve
stm
en
ts n
ot
on
ly s
pe
ak
s to
th
e b
uilt
ass
ets
th
em
selv
es
bu
t to
th
e im
pa
ct
the
y
po
se t
o t
he
en
vir
on
me
nt
an
d c
om
mu
nit
y in
wh
ich
th
ey
re
sid
e. M
an
ufa
ctu
rers
will
fa
ce c
on
tin
ue
d r
eg
ula
tory
a
nd
so
cie
tal p
ress
ure
s a
s th
ey
ad
va
nce
fu
rth
er
into
n
ew
ge
og
rap
hie
s, f
ollo
win
g t
he
ir s
up
ply
ch
ain
, la
bo
r fo
rce
, an
d m
ark
ets
. Wh
en
inve
stin
g, c
om
pa
nie
s sh
ou
ld
con
du
ct
rob
ust
En
vir
on
me
nta
l a
nd
So
cia
l Im
pa
cts
A
sse
ssm
en
ts (
ES
IA)
of
the
ir in
ve
stm
en
ts, t
o e
nh
an
ce
sta
keh
old
er
en
ga
ge
me
nt
an
d s
ecu
re a
n o
ve
rall
‘so
cia
l lice
nse
to
op
era
te’.
By
inco
rpo
rati
ng
en
erg
y a
nd
en
vir
on
me
nta
l d
esi
gn
st
an
da
rds
wit
h a
fo
cu
s o
n m
ate
ria
l se
lec
tio
n,
pe
rfo
rma
nce
-ba
sed
ap
pro
ach
to
ind
oo
r e
nv
iro
nm
en
tal
qu
ality
, sm
art
gri
d t
hin
kin
g a
nd
wa
ter
effi
cie
nc
y,
wh
en
de
sig
nin
g, c
on
stru
cti
ng
, ma
inta
inin
g, o
pe
rati
ng
a
nd
pla
nn
ing
fo
r a
fa
cilit
y’s
eve
ntu
al d
eco
mm
issi
on
ing
, m
an
ufa
ctu
rers
ca
n r
esp
on
sib
ly a
dd
ress
an
d m
itig
ate
re
gu
lato
ry a
nd
so
cie
tal p
ress
ure
s w
hile
als
o
low
eri
ng
co
sts.
Co
mp
an
ies
ca
n g
o a
ste
p f
urt
he
r in
ach
iev
ing
a
sust
ain
ab
le a
pp
roa
ch
to
ca
pit
al p
rog
ram
s. T
akin
g t
he
ti
me
up
fro
nt
to s
tra
teg
ica
lly
ass
ess
lon
g-t
erm
imp
ac
ts
of
the
ir C
ap
Ex
de
cis
ion
s, in
clu
din
g w
he
n s
ele
cti
ng
si
ng
le o
r m
ult
iple
sit
es,
ca
n m
ax
imiz
e t
he
be
ne
fit,
so
cia
l a
cce
pta
nce
an
d R
OI in
th
e lo
ng
-ru
n.
STEP
4: P
rio
riti
ze
a p
art
ne
rsh
ip a
pp
roa
ch
wit
h s
up
pli
ers
Inte
gra
tin
g s
up
plie
rs in
to t
he
co
re b
usi
ne
ss v
alu
e
ch
ain
an
d a
lig
nin
g t
he
m t
o d
elive
rin
g p
rod
uc
t to
a
ma
rke
t d
oe
s n
ot
ha
pp
en
by
ch
an
ce. T
he
re
al v
alu
e o
f
en
ha
ncin
g t
he
su
pp
ly c
ha
in m
ea
ns
rep
lacin
g a
d h
oc
ap
pro
ach
es
wit
h a
pa
rtn
ers
hip
fo
cu
s, h
elp
ing
su
pp
lie
rs
ga
in a
de
ep
un
de
rsta
nd
ing
of
bu
sin
ess
ne
ed
s a
nd
ob
jec
tive
s. S
hif
tin
g f
ocu
s to
ince
nti
viz
e o
n o
utc
om
es,
rath
er
tha
n o
utp
uts
is a
sta
rt, a
nd
we
fin
d t
ha
t ke
y
pe
rfo
rma
nce
ind
ica
tors
fo
r th
e s
up
ply
ch
ain
are
mo
re
succ
ess
ful fo
r su
pp
lie
rs w
ho
lly
alig
ne
d t
o t
he
ca
pit
al
de
live
ry p
rog
ram
te
am
. Ne
w t
ech
no
log
ies
als
o r
eq
uir
e
a p
art
ne
rsh
ip a
pp
roa
ch
. Co
mm
itm
en
t fr
om
bo
th
ca
pit
al d
elive
ry p
rog
ram
te
am
an
d s
up
plie
rs is
ne
ed
ed
to s
ecu
re s
ea
mle
ss in
form
ati
on
exch
an
ge
s a
nd
op
tim
ize
usa
ge
of
ne
w t
ech
no
log
ies.
Ho
we
ve
r, c
om
pa
nie
s m
ust
inve
st in
co
nti
nu
ally
imp
rov
ing
su
pp
lie
r e
ng
ag
em
en
t, in
no
va
tio
n a
nd
com
mu
nic
ati
on
to
alig
n t
he
m t
o b
usi
ne
ss g
oa
ls. T
his
cri
tica
l clie
nt
role
re
qu
ire
s d
ed
ica
ted
att
en
tio
n a
nd
inve
stm
en
t w
ith
ou
t w
hic
h c
ap
ita
l d
elive
ry p
erf
orm
an
ce
fall
s sh
ort
of
ex
pe
cta
tio
n.
1
2
3
4
56
7M
onit
or
and
impr
ove
perf
orm
ance
th
roug
h in
dust
ry
benc
hmar
king
and
pe
rfor
man
ce
man
agem
ent
Cons
ider
th
e w
hole
ass
et
lifec
ycle
and
pu
t des
ign
at
the
cent
er to
im
prov
e fle
xibi
lity
and
agili
ty
Uti
lize
a su
stai
nabl
e ap
proa
ch to
ca
pita
l in
vest
men
ts
Prio
riti
zea
part
ners
hip
appr
oach
w
ith s
uppl
iers
Com
mun
icat
e up
fron
t to
bett
er e
ngag
e in
tern
al
stak
ehol
dersAt
trac
tth
e be
st ta
lent
- a
nd a
chie
ve
mor
e w
ith w
hat
you
have
!
Incr
ease
ce
ntra
l vi
sibi
lity
and
know
ledg
e of
ca
pita
l pr
ogra
ms
THE
ROU
TE
TO S
UCC
ESS
STEP
5: C
om
mu
nic
ate
up
fro
nt
to b
ett
er
en
ga
ge
in
tern
al
sta
ke
ho
lde
rs
Inte
rna
l st
ake
ho
lde
r m
an
ag
em
en
t ca
n m
ake
or
bre
ak
a
ca
pit
al p
rog
ram
, so
ea
rly
an
d s
ust
ain
ed
en
ga
ge
me
nt
is c
rucia
l. E
ffe
cti
ve
sta
keh
old
er
en
ga
ge
me
nt
req
uir
es
invo
lve
me
nt
of
the
ca
pit
al fu
nc
tio
n a
t th
e e
arl
iest
st
ag
es
of
bu
sin
ess
pla
nn
ing
fo
r n
ew
fa
cilit
ies.
Th
e a
bilit
y t
o s
up
po
rt o
pti
on
ee
rin
g a
nd
fin
an
cia
l p
lan
nin
g w
ith
ex
pe
rt s
up
po
rt f
rom
th
e s
up
ply
ch
ain
is
key
to
th
is e
arl
y e
ng
ag
em
en
t. T
his
is lik
ely
to
invo
lve
ris
k
ba
sed
“sh
ou
ld c
ost
” a
nd
“sh
ou
ld t
ake
” b
en
ch
ma
rkin
g
an
d a
cce
ss t
o n
ew
te
ch
no
log
ies,
lik
e V
irtu
al a
nd
A
ug
me
nte
d r
ea
lity
, wh
ich
all
ow
no
n-e
xp
ert
s to
u
nd
ers
tan
d t
he
pla
nn
ed
fa
cilit
y a
nd
co
ntr
ibu
te w
ith
th
eir
kn
ow
led
ge
ab
ou
t p
rod
uc
tio
n p
roce
sse
s to
o
pti
miz
e p
erf
orm
an
ce d
uri
ng
op
era
tio
ns.
Org
an
iza
tio
ns
tha
t w
ork
ou
t h
ow
to
intr
od
uce
su
ch
ex
pe
rt a
dv
ice
ea
rly
in
th
e p
roce
ss w
ill b
en
efi
t th
rou
gh
incre
ase
d c
ert
ain
ty
in d
elive
ry a
nd
be
yo
nd
. Bu
ildin
g c
ust
om
er
rela
tio
nsh
ip
ma
na
ge
me
nt
is a
co
re c
om
pe
ten
cy
fo
r ca
pit
al d
elive
ry
org
an
iza
tio
ns
an
d t
his
cu
ltu
re o
f e
ng
ag
em
en
t n
ee
ds
to
be
gin
du
rin
g r
ecru
itm
en
t a
nd
th
en
be
en
cou
rag
ed
an
d
de
ve
lop
ed
th
rou
gh
ou
t p
eo
ple
s’ c
are
ers
.
STEP
6: I
nc
rea
se c
en
tra
l v
isib
ilit
y a
nd
kn
ow
led
ge
of
c
ap
ita
l p
rog
ram
s
Wh
ere
co
mp
an
ies
ha
ve
ta
ken
a c
en
tra
lize
d a
pp
roa
ch
to
d
ecis
ion
ma
kin
g, i
t is
ne
cess
ary
th
at
the
y h
ave
th
e r
igh
t v
isib
ilit
y a
nd
kn
ow
led
ge
of
the
ir c
ap
ita
l p
roje
ct
an
d b
uilt
a
sse
t p
ort
folio
s. In
th
is w
ay,
th
ey
ca
n e
nsu
re t
ha
t th
eir
ce
ntr
aliz
ed
ca
pit
al p
rog
ram
s ta
ke in
to a
cco
un
t e
ve
ry
pa
rt o
f th
eir
bu
sin
ess
, an
d t
ha
t it
pro
pe
rly
tra
nsl
ate
s to
th
eir
re
al e
sta
te t
ea
ms.
Co
mp
an
ies
loo
kin
g t
o a
ch
ieve
th
is p
rom
ote
a c
ult
ure
of
vis
ibilit
y t
hro
ug
h s
ucc
ess
ful m
on
ito
rin
g a
nd
re
gis
teri
ng
o
f th
eir
ass
ets
an
d c
ap
ita
l p
rog
ram
s – s
up
po
rte
d b
y
rea
l-ti
me
dig
ita
l p
latf
orm
s. T
his
tra
nsp
are
nc
y in
clu
de
s th
e a
ttri
bu
tes
for
pri
ori
tizi
ng
inve
stm
en
ts, w
he
the
r re
gu
lato
ry a
nd
sa
fety
, im
pro
vin
g b
usi
ne
ss p
erf
orm
an
ce,
or
oth
er
face
ts. T
his
ca
n b
e s
up
po
rte
d b
y le
ve
rag
ing
in
tern
al a
nd
su
pp
lie
r C
ap
Ex
da
ta a
nd
an
aly
tics.
STEP
7: A
ttra
ct
the
be
st t
ale
nt
- a
nd
ac
hie
ve
mo
re
wit
h w
ha
t y
ou
ha
ve
!
Wh
en
de
live
rin
g c
ap
ita
l p
rog
ram
s, t
he
rig
ht
tale
nt
is c
rucia
l, a
nd
ca
n in
ev
ita
bly
be
co
stly
. Att
rac
tin
g
top
ta
len
t is
ma
de
ea
sie
r b
y h
av
ing
a r
ep
uta
tio
n a
s a
p
rog
ress
ive
an
d c
on
tin
uo
usl
y im
pro
vin
g c
ap
ita
l d
elive
ry
org
an
iza
tio
n. B
ein
g t
ho
ug
htf
ul w
ith
th
e d
esi
gn
of
role
s, a
nd
co
ntr
ac
ts, i
s a
lso
imp
ort
an
t w
he
n s
ee
kin
g t
o
att
rac
t th
e b
est
. It
ca
n a
lso
be
th
e c
ase
th
at
the
be
st
ex
pe
rie
nce
is f
ou
nd
in s
up
plie
r o
rga
niz
ati
on
s w
he
re
ca
ree
r d
eve
lop
me
nt
an
d le
arn
ing
cu
rve
s ca
n b
e
fast
er,
fu
rth
er
sup
po
rtin
g t
he
mo
ve
to
ou
tso
urc
e
de
live
ry r
ole
s.
On
ce y
ou
ha
ve
th
e t
ea
m in
pla
ce it
is a
bo
ut
leve
rag
ing
te
ch
no
log
y t
o s
imp
lify
pro
cess
es
an
d m
ax
imiz
e t
he
e
ffe
cti
ve
ne
ss a
nd
effi
cie
nc
y o
f th
e t
ale
nt
av
aila
ble
, u
ltim
ate
ly e
na
blin
g c
ap
ab
le p
eo
ple
to
do
mo
re.
Org
an
iza
tio
ns
tha
t in
ve
st in
ca
ree
r p
ath
s, c
ap
ab
ilit
y
de
ve
lop
me
nt
an
d c
ap
ab
ilit
y a
ssu
ran
ce p
rog
ram
s, b
oth
w
ith
su
pp
lie
rs a
s w
ell
as
the
ir o
wn
sta
ff, w
ill b
en
efi
t g
rea
tly
ove
r th
e lo
ng
te
rm.
Th
e d
igit
iza
tio
n a
ge
nd
a it
self
will
re
qu
ire
ne
w s
kill
s a
nd
kn
ow
led
ge
. Ca
pit
al d
elive
ry f
un
cti
on
s ca
n lo
ok t
o
ex
tern
al p
rov
ide
rs t
o a
cce
ss t
he
se f
ast
evo
lvin
g s
kill
s,
rath
er
tha
n f
ocu
sin
g o
n s
ca
lin
g u
p w
ith
an
incre
ase
d
inte
rna
l h
ea
dco
un
t, w
hic
h t
ake
s in
tern
al ca
pa
cit
y a
wa
y
fro
m c
ore
bu
sin
ess
.
6. C
ON
CLU
SIO
NO
ur re
sear
ch p
rese
nts a
pos
itive
pic
ture
for i
ndus
tria
l Cap
Ex o
vera
ll. T
he in
dust
rial
sect
ors a
re e
vide
ncin
g a
rela
tivel
y m
atur
e ap
proa
ch to
cap
ital p
rogr
ams,
taki
ng a
fu
ture
-focu
sed
and
inte
grat
ed v
iew
of t
heir
built
ass
et in
vest
men
ts, in
the
cont
ext
of d
eliv
erin
g th
eir p
rodu
cts t
o m
arke
t.
7. M
ETH
OD
OLO
GY
Ipso
s MO
RI c
ondu
cted
73
stru
ctur
ed
tele
phon
e in
terv
iew
s, on
beh
alf o
f A
rcad
is, b
etw
een
16th
Aug
ust a
nd
30th
Sep
tem
ber 2
016.
P
art
icip
an
ts w
ere
re
spo
nsi
ble
fo
r si
gn
ifica
nt
ma
na
ge
me
nt
de
cis
ion
s a
bo
ut
ca
pit
al in
ve
stm
en
t
pro
jec
ts f
or
the
ir b
usi
ne
ss.
To
ge
the
r, t
he
pa
rtic
ipa
nts
re
pre
sen
t le
ad
ing
ma
nu
fac
turi
ng
co
mp
an
ies
ge
ne
rati
ng
ove
r
US
$3
00
bill
ion
in r
eve
nu
es
ea
ch
ye
ar,
sp
an
nin
g
the
au
tom
oti
ve
, ph
arm
ace
uti
ca
l, c
he
mic
al,
bu
ildin
g a
nd
me
tal, h
ea
vin
g in
du
stri
al, f
ast
mo
vin
g
con
sum
er
go
od
s (F
MC
G -
inclu
din
g f
oo
d a
nd
be
ve
rag
e)
ele
ctr
ica
l, e
ng
ine
eri
ng
an
d g
en
era
l
ma
nu
fac
turi
ng
se
cto
rs.
Pa
rtic
ipa
nts
we
re f
rom
th
e U
K, C
on
tin
en
tal
Eu
rop
e, N
ort
h A
me
rica
, La
tin
Am
eri
ca
an
d A
sia
.
Th
e g
eo
gra
ph
ica
l sc
op
e o
f th
eir
ro
le w
as
pri
ma
rily
cou
ntr
y-s
pe
cifi
c, g
lob
al o
r re
gio
n-s
pe
cifi
c.
Th
is r
ep
ort
wa
s cre
ate
d b
y B
ria
n R
idd
ick, t
og
eth
er
wit
h in
sig
hts
fro
m A
rca
dis
' Glo
ba
l S
ec
tor
Le
ad
ers
an
d o
ur
ex
pe
rt k
ey
co
ntr
ibu
tors
To
m M
org
an
an
d
Ed
el C
hri
stie
.
8. F
URT
HER
REA
DIN
G
CA
TA
LYS
T F
OR
CH
AN
GE
:
CA
PIT
AL
PR
OG
RA
M E
VO
LU
TIO
N
IN T
HE
CH
EM
ICA
L A
ND
PH
AR
MA
CE
UT
ICA
L IN
DU
ST
RIE
S
ON
TH
E R
OA
D T
O A
N A
SS
ET
MA
NA
GE
ME
NT
RE
VO
LU
TIO
N
BE
ST
IN
CL
AS
S
MA
NU
FA
CT
UR
ING
- T
HE
FA
CT
OR
Y O
F T
HE
FU
TU
RE
OP
TIM
IZIN
G O
PE
RA
TIO
NA
L
EX
PE
ND
ITU
RE
UR
BA
N L
AN
D R
ES
TO
RA
TIO
N
IND
EX
- H
AR
NE
SS
ING
TH
E
VA
LU
E O
F IN
DU
ST
RIA
L
SU
RP
LU
S P
RO
PE
RT
Y
Th
is is
mir
rore
d in
th
eir
ove
rall
co
nfi
de
nce
in t
he
pe
rfo
rma
nce
an
d o
utc
om
es
of
the
ir c
ap
ita
l p
roje
cts
. It
ha
s su
bst
an
tia
lly
sh
ifte
d f
rom
wh
at
ha
s b
ee
n p
rev
iou
sly
wit
ne
sse
d in
th
e in
du
stri
al se
cto
rs, w
he
re c
ap
ita
l
pro
jec
ts w
ere
his
tori
ca
lly
pla
nn
ed
an
d e
xe
cu
ted
on
a
fra
gm
en
ted
or
site
-by
-sit
e b
asi
s.
Ho
we
ve
r, in
a c
ha
ng
ing
an
d p
rice
-co
nst
rain
ed
ma
rke
t, c
om
pa
nie
s ca
nn
ot
aff
ord
to
fa
ll b
eh
ind
th
eir
com
pe
titi
on
or
will
lose
ou
t o
n s
ale
s a
nd
en
d-u
ser
loy
alt
y. T
he
se
ve
n k
ey
re
sea
rch
tre
nd
s a
nd
th
em
es
hig
hlig
ht
cle
ar
are
as
for
imp
rove
me
nt
in c
ap
ita
l
pla
nn
ing
an
d d
elive
ry in
th
e in
du
stri
al se
cto
rs. A
s
ind
ust
ria
l ch
an
ge
an
d in
no
va
tio
ns
com
e in
qu
icke
r
succ
ess
ion
, co
mp
an
ies
mu
st e
nsu
re t
he
y a
re in
the
lea
din
g p
erc
en
tile
s o
f th
eir
se
cto
r to
re
ma
in
com
pe
titi
ve
, an
d in
du
stri
al se
cto
rs m
ust
lea
rn f
rom
th
e
insi
gh
ts r
eve
ale
d t
o e
nsu
re t
he
y a
re r
ea
dy
fo
r th
e f
utu
re.
Pro
gre
ssiv
e c
om
pa
nie
s a
re e
mb
racin
g t
ech
no
log
y t
o
vis
ua
lize
an
d s
ha
re in
form
ati
on
wit
h a
ll s
up
plie
rs a
nd
sta
keh
old
ers
, wh
ile a
lso
se
cu
rin
g a
sse
t in
form
ati
on
. An
d
it is
re
cog
niz
ed
th
at
the
de
cen
tra
lize
d in
tera
cti
on
s th
at
ch
ara
cte
rize
In
du
stry
4.0
are
en
ab
led
by
hig
h-q
ua
lity
,
cen
tra
lize
d v
isib
ilit
y o
f p
erf
orm
an
ce a
nd
de
cis
ion
-
ma
kin
g. C
on
seq
ue
ntl
y, w
hile
em
bra
cin
g t
ech
no
log
y is
key,
th
e r
ea
l v
alu
e lie
s w
ith
in b
uild
ing
clo
se r
ela
tio
nsh
ips
an
d e
ng
ag
em
en
t w
ith
th
ese
sta
keh
old
ers
an
d s
up
plie
rs.
Co
mm
itti
ng
eff
ort
to
en
ga
gin
g t
he
ir b
usi
ne
ss p
art
ne
rs
thro
ug
ho
ut
the
pla
nn
ing
, de
sig
n a
nd
co
nst
ruc
tio
n
pro
cess
ca
n h
elp
ma
nu
fac
ture
rs a
ch
ieve
an
inte
gra
ted
va
lue
ch
ain
, wh
ere
all
pa
rtie
s a
re f
ocu
sed
on
ge
ttin
g t
he
mo
st in
no
va
tive
an
d c
om
pe
titi
ve
pro
du
ct
to m
ark
et.
Th
is a
gile
, da
ta r
ich
, hig
h e
ng
ag
em
en
t st
yle
of
ca
pit
al
de
live
ry is
wh
at
con
sum
er
de
ma
nd
s a
re n
ow
dri
vin
g,
an
d m
an
y in
du
stri
al m
an
ufa
ctu
rers
are
we
ll o
n t
he
ir
wa
y t
o a
ch
iev
ing
it. W
hile
th
is is
a p
osi
tive
pic
ture
for
the
lea
din
g c
om
pa
nie
s, it
is im
pe
rati
ve
th
at
less
ma
ture
co
mp
an
ies
foll
ow
th
is t
ren
d a
nd
lea
rn f
rom
the
ir p
ee
rs t
o s
ucc
ess
fully
inve
st a
nd
bu
ild in
ch
an
gin
g
ma
nu
fac
turi
ng
ma
rke
ts.
Wa
nt
to k
no
w h
ow
yo
u b
en
ch
ma
rk a
ga
inst
yo
ur
pe
ers
?
In a
dd
itio
n t
o o
ur
rese
arc
h, A
rca
dis
wo
rks
wit
h le
ad
ing
ca
pit
al d
elive
ry o
rga
niz
ati
on
s to
ass
ess
an
d o
pti
miz
e
inve
stm
en
t p
lan
nin
g a
nd
de
live
ry. I
f yo
u a
re in
tere
ste
d
in fi
nd
ing
ou
t h
ow
yo
u b
en
ch
ma
rk a
ga
inst
yo
ur
pe
ers
,
ple
ase
co
nta
ct
us.
www.arcadis.com
Arcadis
@ArcadisGlobal
Arcadis. Improving quality of life
CONTACT USTjerk van der Meer
Global Sector Leader
- Conglomerates & Consumer Goods
T +31 6 51 456 402
Paul Fielden
Global Sector Leader
- Automotive
T +44 7764 146 068
Martijn Karrenbeld
Global Sector Leader
- Chemical & Pharmaceutical
T +31 6 27 060 599
