If there is one constant in the Infrastructure, Energy & Materials industry, it is the onward march of change. Increasing competition globally is seeing many companies innovating faster to deliver new and differentiated products to their customers, while others are diversifying their portfolios into new business areas. As this is happening, the growing focus on sustainability is seeing them push to become ever more efficient in how they engineer, construct and operate.
Key trends driving change in Infrastructure, Energy & Materials businesses include:
- Companies want faster, more agile innovation so they can react faster to changes in market demand, and they want deeper visibility into what their business customers are doing.
- Integrated oil and gas companies are looking to increase the added value of the crude oil they sell by making sure it’s used to produce chemicals.
- Chemical companies are moving towards selling materials and formulation properties and become “specialty-as-a-service” providers.
- Large corporations are facing innovation from smaller, niche companies, that are moving away from the traditional transactional EPC business models to offer new all-encompassing, differentiated customer experiences.
- From the end-product standpoint, companies main danger is being relegated as a commodity supplier with production costs as the only lever to improve company performance.
- For conservative companies, waiting to see what happens can bring opportunities to learn from the failures of others. The danger is that when the company wants to transform it will be too late.