Challenges and solutions in mechanical engineering

After years of strong growth this industry has to deal with the impacts of the financial and economic crisis now. Order income in the traditionally strong range of high-end machines recover significantly and at the same time the competitors from the emerging markets (BRIC-states) gain rapidly ground within the mean performance segment.

The challenges of the next years in mechanical engineering can be described as following:

(1) ) Corporate Innovation must be strengthened, in order to extend or at least retain the still significant technology and performance lead. In this context only those innovations are relevant that generate a considerable customer’s benefit. Thus application know-how (for the customer’s processes) is demanded as well as the ability to convert this know-how into real solutions.
-> Innovation under control

(2) Higher profitability in core business: This means strict product value optimization, manufacturing cost reduction, extended use of standard components for product configuration and a better control of product complexity.
-> Efficient customer order processing

(3) Professionality and efficiency in the development of customer specific products (special machinery) will be one of the most effective tools for strengthening customer loyality in the near future. We mean the complete chain from order initiation up to customer approval, strictly adhering to delivery dates, complying to performance, availability and quality promises as well as a professional change management.
-> Efficient customer order processing

(4) Flexibility to adapt quickly to new business models: The trend of enlarged services and operating models up to “life cycle support” for machines will intensify and pro-rata push back conventional product selling. This requires new calculation models based on a Life Cycle Costing approach taking into consideration cost and environmental aspects.
-> Profitable products

(5) The growing competition from Far East et al. can only be met with innovative and qualitatively strong products. But how to “overpower” the purchaser of the potential customer who’s primary focus is costs? Transferring quality into cost advantages means to consider capital costs and operating expenses, low failure rate, reduced service and energy costs in one view. Encourage your sales force with a life cycle oriented cost calculation!