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
Resources
Resources
Future of Industrial Automation
Future of Employment
Future of Industrial Automation – Road to Success
The automation industry is facing a variety of global challenges. While the demand for automation products and solutions is constantly rising, more and more companies from North America and Europe are facing increasing competition from Asia. At first glance, primarily the customers are benefiting from lower prices for the desired products. Many companies in the automation industry are therefore asking themselves which strategic initiatives they should prioritize to be successful in the medium and long term. How can companies ensure their competitiveness? And how can they differentiate themselves from the competition in the automation industry? Which levers promise the most significant influence on revenue and profitability? Which regional markets are desirable for revenue growth and investments in new production facilities? Do companies see their unique selling point more in their products or services? Which role does Artificial Intelligence play in the future of the automation industry?
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Future of Employment
The use of generative artificial intelligence (GenAI) has the potential to counteract the shortage of skilled workers, make processes more efficient and thus save costs and improve planning and product quality.
The use of generative artificial intelligence (GenAI) has the potential to counteract the shortage of skilled workers, make processes more efficient and thus save costs and improve planning and product quality.
But how can GenAI be used in production-related functions, for example in the automotive industry? We examined this question in the study “Future of Employment in Operations”, for which we interviewed high-ranking experts from science, management, IT and consulting with a focus on AI. The result: production-related functions can be largely automated through the consistent use of generative AI – and this already until 2029.
According to AI experts, up to 80 percent of the tasks of indirect functions in the automotive industry that are characterized by cognitive activities will no longer be carried out by highly paid specialists in the next six years, but by AI technology.
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Nathaniel Kinsella