One of the most remarkable developments of the 21st century global marketplace is the rapid growth and evolution of the sharing economy. Today, ordinary people can rent, short-term, everything from luxury handbags to high-end homes to powerboats to designer pets to musical instruments. And also cars. BCG has researched the potential growth of the car-sharing market and estimated its impact on new-car sales in 2021.
Industrial production was transformed by steam power in the nineteenth century, electricity in the early twentieth century, and automation in the 1970s. These waves of technological advancement did not reduce overall employment, however. Although the number of manufacturing jobs decreased, new jobs emerged and the demand for new skills grew. Today, another workforce transformation is on the horizon as manufacturing experiences a fourth wave of technological advancement: the rise of new digital industrial technologies that are collectively known as Industry 4.0.
Industrial production was transformed by steam power in the nineteenth century, electricity in the early twentieth century, and automation in the 1970s. These waves of technological advancement did not reduce overall employment, however. Although the number of manufacturing jobs decreased, new jobs emerged and the demand for new skills grew. Today, another workforce transformation is on the horizon as manufacturing experiences a fourth wave of technological advancement: the rise of new digital industrial technologies that are collectively known as Industry 4.0.
ECS companies continue to engage in substantial M&A activity. Although deal volume has not approached the level of 2008, the number of megadeals (those whose total transaction value is at least $1 billion) grew to three in 2014: WSP Global’s acquisition of Parsons Brinckerhoff, SNC-Lavalin’s purchase of Kentz, and Aecom’s deal for URS. (See Exhibit 11.) Moreover, most companies have ample dry powder—cash and borrowing capacity—at their command. The median ECS company in our sample has about $1 billion in dry powder, and many of the larger players have $5 billion or more.
Companies in the automotive and engineered-product industries face complex and costly product-development challenges. Last-minute changes and time and cost overruns are common and, in many cases, attributable to poor alignment of product requirements, the development project’s time line, and the product’s target cost. Some products move forward in the development process despite obvious deficiencies because internal politics frequently trump objective facts. These problems typically stem from inadequate collaboration within and among departments, as well as a failure to capture, utilize, and share knowledge throughout the organization.
Germany Provides an Excellent Example of the Economic Impact of the Digital Revolution, Growth of About 1 Percent GDP and Labor Increases of About 6 Percent Are Possible in Ten Years, According to a New BCG Report
The Industrial Internet is here: smart, connected machines generating prodigious amounts of data that can be analyzed to improve operations. Inexpensive sensors, ubiquitous connectivity, the ever-declining cost of microprocessors and storage, and the emergence of cloud-based storage and software have made this shift possible. Traditional capital-equipment suppliers—which have historically focused on mechanical- and electrical-engineering disciplines—will need to rethink their business models and respond with new data- and software-enabled services. Implemented correctly, these new business models will allow suppliers to strengthen their ties to the customer and create new revenue sources.
Across almost all sectors and regions, companies face unprecedented disruption. The competitive advantages that once gave companies a defensible position—their product lineup, scale, or legacy position—are no longer as secure as they were. Some upstart with a newer and more agile operating model will start taking market share—if it hasn’t already.
The rise of robotics is gaining traction much faster than most executives realize and will have a major impact on the competitiveness of companies and countries alike, according to new research by The Boston Consulting Group (BCG).
Spending on robots worldwide is expected to more than quadruple from just over $15 billion four years ago to about $67 billion by 2025—a 10.4 percent compound annual growth rate since 2010—according to BCG’s study. The findings appear in a new article, “The Rise of Robotics,” published on bcgperspectives.com.
New Report by The Boston Consulting Group Finds That Improved Cost Competitiveness Since 2004 Is Leading to New Factory Investment in Countries Such as the UK and Mexico, Where Productivity Has Largely Offset Wage Hikes.
