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INDUSTRIES SERVED

We work with physical product industries across B2B and B2C sectors 

Industries

We bring unique industry knowledge to our clients, leveraging hands-on experience within the industry, coupled with an external perspective from investors and analysts

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Our perspective on industry trends helps enable a market-back approach to product strategy and operations planning, helping clients identify the areas of emerging growth and risk

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Our dedication to physical product industries provides clients with teams that hit the group running, instead of generalists who need to be educated on how their business works 

B2B

Industrial Parts
Industrials
Electronic Circuit Board
Electronics
Aluminum Factory
Materials

B2C

Bicycle Equipment
Consumer
Products
Cosy Living Room
Home
Goods
Watch Store
Fashion

Industrials

Top trends impacting the industrials industry

Green transition

The societal push for green technology is driving a massive overhaul in product portfolios and manufacturing technologies. 

  • OEMs are faced with a surge in product development work as they migrate products to electrical-based power systems, shifting buying patterns down the supply chain. 

  • Green manufacturing technologies are pushing out legacy equipment at a faster rate, disturbing traditionally stable processes like capital planning and maintenance

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Supply chain resiliency

COVID created a reckoning on supply chain risk management, challenging the historical strategy of distributed supply networks seeking the lowest cost.  Companies are shifting strategies to near-shoring and campus-based supply chains, but the reality of implementation is bogging down meaningful progress

  • Sub-supplier networks run deep, and shifting one factory isn't enough, shifts need to be done to the entire network 

  • Teams supporting factories transfers and supplier development are woefully unprepared for the volume of shifts occurring

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Managing commodity volatility

Historically stable commodities like steel and energy have become massively volatile, which translates to gross margin erosion for companies that are not able to manage product pricing at the same pace as commodity swings.  Adapting to this new market reality requires better integration of commodity management and commercial teams

  • Real-time visibility into current costs and realized price is now a critical capability, breaking the historical quarterly reporting cadences and systems

  • Pass-through risk in contracting, common in the materials industry, will need to be adopted to control risk, which is a large change for commercial and sales teams

Industrial Parts
Electronic Circuit

Electronics

Top trends impacting the electronics industry

Semiconductor strategy

Between COVID-driven shortages, nationalistic incentive policies, and the continual pace of computing power, semiconductor strategy is paramount for any company in the electronics industry.  Companies should be looking at two different elements related to semi-conductors:

  • Chip design strategies are now corporate strategies, with companies testing out dual sourcing across chip providers, customer semi-conductors and distributed computing systems

  • National incentives are creating real​ changes in the supply chain as companies can take advantage of programs like CHIPS Act for major asset expansions beyond just semiconductor fabrication​

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Software-fueled business models

Tech companies have realized hardware is a critical part of software delivery and are entering the industry with vigor to control this part of the value chain.  Funded by VCs with deep pockets, they are making bets on selling hardware at cost to make it up with software later.  Even if that bet is wrong, and it often is, it effectively craters the industry as customers become used to a price point that is unsustainable for traditional device manufacturers.  This market dynamic is forcing both hardware and software companies to grow capabilities to match the other

  • Hardware companies need to have a software strategy, either internally development or external partnerships, to avoid being the one that is eaten when software eats the world

  • Software companies need to build better hardware capabilities, as a poor discipline in product cost control coupled with low device pricing creates a cash burn rate that future software sales can never recover

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Decoupling from China

The depth of dependency the electronics industry has on the Chinese supply ecosystem cannot be understated.  While many talk a big game about getting out of China, supply chain teams are struggling to deliver in a way that doesn't introduce higher risk from distributed supply chains that still tie back to China.  

  • The sequential walk back from the final assembly, PCBA to components is a logical approach, but this will come at a cost of component inventory

  • Technical skills development is a critical part of any migration, as decades of experience within a Chinese hub cannot appear overnight in Mexico 

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