Industries
The world of manufacturing is facing many of the same challenges regardless of the region they are located in. Although there are similarities in the general challenges, there are differences in the specifics. In the US, the constant threat of tariffs adds additional strain on an already challenged industry. Global tensions, trade regulations and war in some regions put additional pressure on the supply chain.
Up to 15 %
productivity increase
Up to 20%
operational efficiency increase
Up to 30%
cost savings
Overview
Overview
There are five key areas that the Manufacturing industry is currently faced with addressing as they build their corporate strategies and put them into action.
People :
The workforce is aging, experienced workers are retiring creating gaps that aren’t adequately being filled due to lack of younger workers’ ability to step in. There appears to be a mismatch between the skills required by the industry and the skills that are available in the market.
Demand :
Consumer demand behavior can be erratic with quick shifts to new technologies and trends (e.g. electronics, automotive, etc.). Companies need to invest heavily to keep up with changing demands. The demand for tailored products is also increasing, which is in direct conflict with high volume production models.
Operations :
Geopolitical tensions are creating instability in supply chains and impacting access to materials and components. Logistics bottlenecks (trucking, rail and ports) result in additional delays and unpredictability.
Technology :
Companies struggle to keep up with the pace of digital transformation and introducing Industry 4.0 technologies such as Internet of Things (IoT), Artificial Intelligence (AI) or Digital Twins. Legacy systems and infrastructure are expensive to maintain and don’t integrate with modern systems.
Competition :
Competition from low-cost countries such as China, India, Vietnam, but also Mexico, are putting pressure on pricing. The current US administration’s introduction of significant tariffs is looking to address this challenge, but this is likely to result in many new challenges (e.g. protectionism, boycott of US products, reciprocal tariffs) further exacerbating the situation.
Why Horváth
Why Horváth
Horváth combines deep industrial expertise with strategic and operational consulting to help manufacturers across sectors - from automotive and machinery to electronics and industrial goods - navigate disruption, drive efficiency and secure long-term competitiveness. Consultants bring hands-on experience in both manufacturing environments and transformation programs, enabling us to support clients at every stage of their value chain.
In a market defined by global supply pressures, digital transformation and sustainability demands, clients need support to:
- Align business and operating models to evolving customer needs, technological advancements and cost structures
- Optimize production networks, supply chains and sourcing strategies for resilience, efficiency and ESG compliance
- Leverage Industry 4.0 technologies, such as IoT, automation and advanced analytics, to enhance productivity and innovation
- Implement lean operations and process excellence to reduce waste, increase throughput and improve quality
- Restructure organizational design and capability models to foster agility, digital readiness and cross-functional performance
Case studies
Case studies/testimonials
Technology acceleration
Finance excellence
Business Strategy
WHO
Global technology leader in optics and optoelectronics, renowned for precision lenses, imaging systems and scientific instruments.
WHAT
The company set the goal to migrate from SAP ECC to SAP S/4 HANA due to systems limitations to address market requirements.
HOW
The project was initiated with comprehensive project scoping and project management setup. Areas supported throughout the project were business model, steering model, master data management, IT configuration and proof of concept.
WHO
Leading international manufacturer of pumps, valves and related systems for water, wastewater, energy and industrial applications.
WHAT
Insufficient tracking and reporting of comprehensive business transformation. Demand for information for top management decision-making.
HOW
Company-wide standardized project reporting in BI frontend. Effective project controlling processes were modelled around complex structures.
WHO
Large international manufacturing company.
WHAT
The challenge was to redefine the corporate strategy of a manufacturing company in light of emerging technological advancements, particularly in the field of artificial intelligence (AI). This involved identifying relevant use cases, assessing strategic impact and integrating these insights into a forward-looking strategy. A key part of the challenge was to translate the revised strategy into a practical, KPI-driven management concept that could be effectively implemented across the organization.
HOW
A series of structured top management interviews and facilitating strategy workshops were conducted to ensure alignment across leadership. Together, we defined a clear strategic direction and translated it into a consistent management concept, underpinned by measurable KPIs to drive execution and accountability.
Solutions expertise
Solutions expertise
Operations Performance
Technology Acceleration
Business Strategy
Finance Excellence
Connect with Horváth
Your Contact
Nathaniel Kinsella