The Manufacturing Agenda
Growth and investment
Running a manufacturing business is not solely about responding to external events. Boards also make strategic decisions intended to build long-term resilience and support sustainable growth. So, what does our research tell us about the proactive decisions that manufacturers are making? When asked about the major decisions taken in the past year, the most common response was investment in growth, with 29% of businesses committing capital to new plant, technology or R&D. This type of decision making and investment is fundamental to improving productivity, efficiency and competitiveness, and the survey results suggest that the impact has been significant. Just over a quarter of respondents (26%) described the effect of their investment as transformational, while a further 43% said it had delivered a material improvement in performance or operations. Other strategic decisions were focused on strengthening resilience. These included restructuring or cost-reduction programmes (28%), refinancing or recapitalisation (24%) and leadership or succession changes (23%). Many boards also pursued M&A opportunities, both on the sell side (21%) and the buy side (14%), reflecting continued movement in ownership structures and a desire to enhance current, or secure complementary, capabilities. And boards are nothing if not ambitious; 29% said their decision making was transformational in scale, with a significant shift in business model or direction, and 40% said their decisions were designed to have a material impact on performance or operations. Despite this ambition, outcomes have been mixed. Only 28% of respondents said their strategic decisions fully delivered the intended results. A similar proportion reported partial success, while 26% said their decisions did not deliver. For 18%, it was too early to judge. Strategic investment and long-term planning
26% Said investment was transformational 43% Reported material improvement 29% Invested in plant, technology or R&D
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Resilience measures
24% Refinanced or recapitalised 28% Restructured or reduced costs
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23% Made leadership or succession changes
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