2007 Manufacturing Study:
Leading Through Growth

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  • 2007 Manufacturing Study
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Manufacturers Say They’re No Longer 'World Class'

To Grow in a Competitive Market, Companies Seek More Resources, Customer Insight, Survey Finds

After decades as the undisputed leader, U.S. manufacturing is losing ground to its global counterparts.  In the same nation where assembly lines brought the automobile to the masses, manufacturing executives now doubt their place in the worldwide marketplace.

"Leading through Growth" a Capgemini survey of nearly 300 leading manufacturing executives, finds that just two out of every five manufacturers today consider their companies to be "world class" in such mission-critical, revenue-generating areas as product innovation, operational excellence and customer retention.

Confidence Waning

Less than half – 39.9 percent – of the surveyed executives are very confident that they’ll meet their own growth goals over the next three years.  A lack of key resources is holding them back, the respondents said.

Falling Short of Top Notch

Very small percentages of the surveyed executives believe their companies are "world class" in several mission-critical, revenue-generating areas.  Specifically, only 18 percent of the respondents believe they are world class in product innovation, 14 percent in operational excellence and 21 percent in customer retention.

Customer Insight Needed

An overwhelming majority of the surveyed executives believe they greatly improve their strengths in product innovation, operational excellence and customer retention by knowing more about their customers.  And while they understand the importance of improving customer relationships, most admit they need to know their customers and their needs better.

Learning the Hard Way

As the survey clearly demonstrates, manufacturers today want to improve their customer relationships because they understand the importance customer insights play in such things as product innovation, lifecycle management and time to market. But the plain fact is that it’s easier said than done, and many companies are learning that the hard way as they attempt to solve the problem on their own. 

Partnerships Needed

To establish "world class" relationships with customers and gain the resources that will enable them to meet their short- and long-term business goals,  manufacturers do not – and should not – have to do it alone.  Instead, they should seek out a partner with whom they can collaborate to find a way to gain the type of crucial customer insights that will enable them to decide how and where they can be "world class."

Finding the Way Back to "World Class"

As the survey shows, manufacturers are considering multiple and complex strategies to meet their revenue targets and growth goals, but for many companies, the real solution can be much more straightforward. In fact, using a single strategy – partnering with a company with deep industry knowledge and world-class resources – can enable manufacturers to address all the resource challenges they’ve identified. Indeed, an experienced and trusted third-party can help manufacturers meet the people management challenges unique to their industries, but will also provide the types of resources they need to meet their revenue targets and achieve sustained business growth.

Capgemini is Exactly that Partner.

If you’d like to discuss how we can help your company achieve better, faster more sustainable results through outsourcing, technology or consulting services, please contact us.