Industrial Products/Manufacturing
The Industrial Products sector is large and diverse in the Middle East, but most sector players face similar challenges. Increased costs for oil, natural gas, steel, copper and plastics are squeezing margins, unless offset by pricing and surcharge increases. There is significant pressure as competition increases, particularly from low-cost manufacturing centres such as China.
Large falls in new orders from downstream customers as a result of weak consumer spending are having a major impact on manufacturers, who have cut back production and are instead running down inventories. Exports have also weakened.
Once inventories are under control, companies will be better placed to respond to demand conditions. What will remain a concern is the intense global competition for local and export markets, combined with the impact of high oil prices on consumer spending.
Companies need to look internally at their production techniques and how they can be improved and made more cost efficient in the long term, as well as reinvesting in technology and innovation, together with lean manufacturing and supply chain initiatives to improve productivity for the next decade.
How PwC can help you
For industrial products companies across the Middle East, PricewaterhouseCoopers offers a strong and reliable network of dedicated industry experts.
Our mission is to help clients extract value from their multinational operations, to develop a competitive advantage across the value chain, and to ensure that all corporate stakeholder expectations are recognised and met. Improving production techniques and identifying greater efficiencies in areas such as waste minimisation, production processes and the use of capital is the focus of our practice.
