Insights
Automotive Data Insights 2024 - in cooperation with Automobilwoche
In close cooperation with FTI-Andersch, Automobilwoche presents the latest report “Automotive Data Insights 2024”. This comprehensive report highlights the current challenges and opportunities facing the automotive industry. Based on concrete figures, the report shows these and other findings: 🚩 Market position of Chinese manufacturers: Chinese carmakers such as BYD and Geely are expanding worldwide and gaining market share, while German manufacturers are struggling with declining sales in many markets. The report uses concrete figures to support this. 🚩 Transformation and turnaround: The industry is on the verge of a profound transformation, driven by e-mobility, digitalization and autonomous driving. Many suppliers are being forced to adjust their strategies and invest in new technologies. In the short term, the main focus is on restructuring and (difficult) refinancing. 🚩 Location Germany: Despite high energy prices and a shortage of skilled labor, Germany remains an important production location. However, companies must adapt their structures to remain competitive. 🚩 E-mobility on the rise: The share of electric vehicles in global production is continuously increasing. China remains the leading market, but Europe is catching up. Read the full report here (German version only).
CFO Strategies: 2024 Global CFO Report
In the landscape of global finance, 2024 emerges as a pivotal year, marked by an intricate blend of innovation and opportunity. The role of the Chief Financial Officer (CFO) continues to be one of the more dynamic roles in the C-suite, encompassing far more than traditional financial oversight; it increasingly interweaves strategic leadership, technological adaptation, and a thoughtful understanding of global economic currents. The FTI Consulting 2024 Global CFO Survey endeavors to shed light on the key global trends for CFOs in 2024. Through in-depth analysis, expert insights, and forward-looking projections, we aim to equip financial leaders with the knowledge and perspective they need to navigate the year ahead with confidence in a time of promising potential and evolving uncertainty.
- Retail
Under pressure - Portfolio adjustment and massive discounts as the "New Normal"?
The number of items available in online shops (so-called stock keeping units or SKUs) increased by 126 % on average between 2020-23. In the same period, however, the average turnover grew by only 19 %. This results in high discounts and portfolio adjustments to reduce increased inventoryrelated costs. Smaller brands and the mid-price segment are particularly affected, with discounts often exceeding 20 %. A comprehensive portfolio analysis and adjustment is an effective means of securing liquidity and reducing complexity in the short term as well as realigning and increasing revenue in the long term, especially in the current economic situation. Find out more in our latest white paper "Under Pressure".
Automotive Data Insights 2024 - in cooperation with Automobilwoche
In close cooperation with FTI-Andersch, Automobilwoche presents the latest report “Automotive Data Insights 2024”. This comprehensive report highlights the current challenges and opportunities facing the automotive industry. Based on concrete figures, the report shows these and other findings: 🚩 Market position of Chinese manufacturers: Chinese carmakers such as BYD and Geely are expanding worldwide and gaining market share, while German manufacturers are struggling with declining sales in many markets. The report uses concrete figures to support this. 🚩 Transformation and turnaround: The industry is on the verge of a profound transformation, driven by e-mobility, digitalization and autonomous driving. Many suppliers are being forced to adjust their strategies and invest in new technologies. In the short term, the main focus is on restructuring and (difficult) refinancing. 🚩 Location Germany: Despite high energy prices and a shortage of skilled labor, Germany remains an important production location. However, companies must adapt their structures to remain competitive. 🚩 E-mobility on the rise: The share of electric vehicles in global production is continuously increasing. China remains the leading market, but Europe is catching up. Read the full report here (German version only).
CFO Strategies: 2024 Global CFO Report
In the landscape of global finance, 2024 emerges as a pivotal year, marked by an intricate blend of innovation and opportunity. The role of the Chief Financial Officer (CFO) continues to be one of the more dynamic roles in the C-suite, encompassing far more than traditional financial oversight; it increasingly interweaves strategic leadership, technological adaptation, and a thoughtful understanding of global economic currents. The FTI Consulting 2024 Global CFO Survey endeavors to shed light on the key global trends for CFOs in 2024. Through in-depth analysis, expert insights, and forward-looking projections, we aim to equip financial leaders with the knowledge and perspective they need to navigate the year ahead with confidence in a time of promising potential and evolving uncertainty.
- Retail
Under pressure - Portfolio adjustment and massive discounts as the "New Normal"?
The number of items available in online shops (so-called stock keeping units or SKUs) increased by 126 % on average between 2020-23. In the same period, however, the average turnover grew by only 19 %. This results in high discounts and portfolio adjustments to reduce increased inventoryrelated costs. Smaller brands and the mid-price segment are particularly affected, with discounts often exceeding 20 %. A comprehensive portfolio analysis and adjustment is an effective means of securing liquidity and reducing complexity in the short term as well as realigning and increasing revenue in the long term, especially in the current economic situation. Find out more in our latest white paper "Under Pressure".
- Automotive
Cost excellence for automotive suppliers in challenging times
Automotive suppliers face numerous challenges in the short, medium and long term. Get to know our proven Cost Excellence programme and learn from a selected project reference how we can support you in developing and implementing a successful turnaround.
- Automotive
Automotive Trends China – Selected Materials
Has the automotive market in China recovered faster from COVID-19 than in Europe? What is China's role in e-mobility? And how is the European strategy of Chinese companies developing? Find out more about the current automotive trends in China.
Navigating Global Dynamics: Threats and Opportunities for European Businesses
It has always been essential for businesses to understand critical trends that shape the global economy. Ever since 2020, this “obligatory exercise” seems to have turned from a quarterly routine into a daily requirement – with COVID-19 and the Ukraine war only being two of the most urgent factors. Looking closer at current economic developments, it becomes clear that several “tectonic shifts” will not manifest themselves favourably in Europe. By examining these trends and their implications, companies can gain insight to navigate the challenges and capitalise on emerging opportunities in the global economy. Find out more in our whitepaper Navigating Global Dynamics.
- Automotive
High-Impact Customer Negotiations in Times of Huge Cost Increases
Automotive suppliers are faced with considerable cost increases and significant volume reductions. Suppliers are forced to take tough cost-cutting measures, e.g. programmes to reduce material costs, cut capacity, relocate production and consolidate sites. In addition, suppliers have to negotiate with their customers. Negotiation results vary widely - some automotive suppliers are able to pass on cost increases almost entirely to customers. The right approach is the key to negotiation success - we will show you how our team can support you in preparing effective negotiations with top customers based on previous project experience.
- Automotive
- Mechanical Engineering
Corporate Debt Study 2023 (German)
The third crisis year in a row after a decade of loose monetary policy and generous government aid programmes during the COVID-19 pandemic is leaving its mark on European corporate balance sheets, the "zombie ratio" as a KPI of this development is at a new record high of over 6 %. Sectors that are particularly important for Germany, such as mechanical engineering and automotive suppliers, show a negative KPI development at the European level. Learn more in our Corporate Debt Study.
- Retail
From “out of stock” to “overstocked”? Effectively manage high inventory and limited liquidity
While sales have been stagnant at best since March 2022, many retailers are observing an increase in their inventories with concern. This is not only worsening their working capital on paper, but also limiting actual solvency – which, in many cases, is still be weakened by the brick-and-mortar lockdowns of previous years. And, while the situation will be tight this winter, the outlook for early 2023 doesn’t look very promising either. There are many reasons for this development: The economic downturn and inflation are curbing the propensity to buy, while the increased cost of living is limiting available household budgets. The expectation of further price increases is prompting many consumers to save. How should retailers and consumer goods verticals respond? Learn more in our whitepaper.
- Retail
Consumer goods & retail: Winter is coming
While consumers try to maintain their accustomed lifestyle with cheaper offers for everyday products, there are increasing signs of consumption delays and cuts, especially in the field of durable consumer goods. Furthermore, consumer goods are subject to compensatory effects, as purchases during the lockdowns were often brought forward (e.g. furniture, sports equipment), and consumers find it easier to do without these products now. Find out more in our current sector snapshot on consumer goods and retail companies.
FTI Resilience Barometer 2022: ESG Edition
Dealing with the climate crisis biggest ESG challenge / War in Ukraine highlights relevance of ESG criteria FTI Consulting surveyed 3,314 decision-makers from companies worldwide (most of whom have annual sales of 100 mn up to 3 bn US dollar) about current trends and risks for their own business.
- Automotive
Industry Update Automotive
Russia's attack on Ukraine is having a massive impact on the global economy, and the automotive industry is no exception. After the COVID-19 crisis and the still ongoing semiconductor shortage, further negative effects from the Ukraine war have already occurred and are still expected. In our industry snapshot, we highlight further challenges and initial options for action.
COO-Agenda 2022: New priorities (German)
The priorities for Chief Operating Officers (COOs) of German companies have shifted compared to the previous year. This is the result of our current survey 'COO Agenda 2023'. Although the most important priority remains the improvement of processes - two out of three of the respondents stated this (67%, previous year: 70%). However, the topics of sustainability and increasing sales (both an increase of 28% points each) and digital transformation (up 22% points) in particular have become significantly more relevant. Further insights can be found in our "COO Agenda 2022". [German version only]
How family businesses master the crisis (German)
German family businesses learned ’crisis skills’ throughout the COVID-19 pandemic German family businesses recognized the crisis signals at the beginning of the COVID-19 pandemic – but they did not act immediately. They have been on a steep learning curve, but weren’t able to transform their newly gained knowledge into new processes right away. These are the findings of a recent study by the Chair of Family Business at the WHU Otto Beisheim School of Management and the management consultancy FTI-Andersch.
Ukraine war (German): Implications for the food industry
Russia's attack on Ukraine has a massive impact on the availability and prices of agricultural products – both countries are major suppliers of food and fertilizers worldwide. Western food producers and traders in particular are feeling the effects and need to react in the short term. What are the consequences and what should be done? Our snapshot provides short-term recommendations for action.
Impact of COVID-19 on PE portfolio companies 2021 (German)
The pandemic has had a noticeable impact on PE fund exits The pandemic has had a discernible impact on exit decisions and holding periods of private equity funds in German-speaking countries. In the survey conducted by FTI-Andersch and the Center for Corporate Transactions and Private Equity (CCTPE) at HHL Leipzig Graduate School of Management, 56 percent of the PE funds surveyed said that COVID-19 had 'strongly' influenced their decision, with four percent even saying it had 'very strongly' influenced their decision. For the future, 68 percent of the respondents expect the holding period to be extended (nine percent: strongly extended). Further results can be downloaded here.
Resilience Barometer 2021 (September Update)
As the world’s financial, political and social landscapes continue to shift, businesses face an increasingly complex and interconnected range of strategic challenges to their security and growth. From technological transformation and regulatory investigations to financial crime and employee wellness, new threats continue to emerge across every area of business, and within every jurisdiction in which G20 companies operate. Learn more in the September edition of the 2021 FTI Resilience Barometer.
- Retail
The competitive city of the future
German cities will be competing with these global urban development projects in the future Digitization, decentralization, changing mobility, sustainability and recovery, greater mixing of sectors and users, and developing a city brand – these are the key challenges all cities worldwide are facing. To conclude our 'Future Cities' study series, we present existing and promising projects for the city of the future based on these macro trends.
- Real Estate
Effects of COVID-19 on selected real estate markets
Ongoing travel and contact restrictions, starting in the spring of 2020, have hit retailers, restaurants, hotels and office providers hard – and thus owners and landlords of these spaces. Recovery does not appear to be in sight over the short term, and the outlook for individual sectors varies widely. In the non-food retail sector, most forecasts assume that space will decline – and will therefore have to be reallocated in the medium term. In the hotel segment, opportunities are opening up for investors with strong liquidity and hotel chains to take over shares of the market now at favorable prices. While offices are less in demand but tend to remain stable in terms of price due to advance contracts, co-working spaces, as lockdown losers from the change in the working world, could now become profiteers: with flexible rental times, office sizes and additional bookable services, they make an interesting offer for the hybrid working world. A detailed quantitative market analysis and interpretation of the market trends can be found in our study.
- Retail
Shopping & eating habits post COVID-19 drive shift in consumer markets
Grocery & food service: these trends Corona helped break through Snackification, ghost kitchens, instant delivery - forced changes in eating and shopping habits during the lockdowns have seen food retailers and restaurants dream up and immediately implement new business models in a matter of months. Peter Lammers, expert for nutrition and agriculture at the consultancy FTI-Andersch, names the five most important trends that will shape the industry in the future.
- Automotive
Transforming the automotive industry
Whether due to new mobility concepts or effects from digitalization and electrification – the automotive industry is undergoing fundamental change. The resulting strategic issues, coupled with operational challenges, e.g. from pandemics, raw material prices and supply chain stability, require decision-makers to act in a forward-looking and structured manner. In our publication, we address key discussion points – learn more.
- Retail
Business model transformation in stationary retail
How companies around the world have succeeded in turning their brick-and-mortar stores into places of experience The summer months of 2021 will once again boost stationary retail. However, one structural problem remains: too often, retail still acts as a "warehouse" with an immediate takeaway option. In the long term, this means that local stores will not be able to compete with online retailers and branded companies that market their own products. The opportunity: stationary stores must become a place of experience in order to make physical visits relevant again. We have gathered successful examples from around the world to illustrate how this can look in very practical terms. Essentially, we see six major thrusts for turning stores into places of experience – learn more.
Project business: Introduction of a group-wide project dashboard
In the project business, the challenge in corporate management is regularly to master the complexity inherent in the large number of individual projects, to identify specific risks and to initiate the right measures at an early stage. The management of liquidity flows at project level and professionalized claims management play a central role here. In practice, it can regularly be observed that companies often only have an ineffective infrastructure in place for sound decision support. However, on the basis of a project dashboard that functions as a "single point of truth", targeted and addressee-oriented communication can be achieved within the company. Project managers, financiers and management can make structured and well-founded decisions. The addressees have a reliable tool at their disposal, which has been developed according to their information needs and integrates known data sources. Learn more in our article published in the e-book "GMBH-GESCHÄFTSFÜHRUNG 2021" by euroforum. [German version only]
- Retail
Future store concepts – new opportunities for stationary retail
Retail in crisis: these seven challenges stationary retailers must tackle now in order to create a long-term perspective Long months of lockdown have increasingly threatened the existence of many retailers. Yet they have only reinforced a trend that was already visible before the Corona crisis: brick-and-mortar retail has been losing relevance for years. The share of sales accounted for by online retail is growing steadily. Mike Zöller and Dorothée Fritsch, retail experts at the consultancy FTI-Andersch, describe seven challenges that retailers must now address – and what they can do concretely to avoid disappearing in the long term.
- Mobility
European car rental market
Main sales drivers of the car rental market are airport stations. European car rental demand was hit hard by COVID-19 effects such as stay-at-home orders and shift to remote working. The sales decline of the leading car rental companies averaged 48% in 2020. Mid-term growth perspectives are positive but require a transformed market approach. Learn more in our sector update.
impact Knowledge Center
Are you faced with the challenge of having to initiate and implement a comprehensive program of projects or measures? impact supports you with targeted functions in establishing a successful implementation management, in which you always maintain an overview and control of structures, schedules, budgets and progress. impact´s central database ("single-point of truth") enables you to efficiently drive forward the implementation of your measures together as a team, in real time and with full transparency – no need to waste time searching for, preparing and sending countless action lists, potential determinations and Status Reports. With impact you are always up to date and able to implement your programs sustainably and successfully!
- Retail
Pulse Survey: Fashion 2021
Pulse Survey on the development of the fashion market: retailers, manufacturers and financiers disagree on their outlook Within the next 24 months, stationary fashion sales will return to pre-Corona levels. Only 53% of fashion manufacturers and 21% of financiers and trade credit insurers expect this. The assessment of fashion retailers is different: here, 72% are optimistic that this target will be achieved again. More than one in three (35%) fashion manufacturers see the pre-Corona level never coming back. On the financiers' side, more than half (53%) assess it that way. This is one of the results of our Pulse Survey 'Fashion 2021'.
- Retail
Fashion 2021 – What drives the apparel and footwear industry?
What drives the apparel and footwear industry in 2021? Where does it stand after several lockdowns, and what are the prospects? How can it meet current challenges such as full warehouses and empty city centers? We discussed this as part of our webinar "Fashion 2021". You can find a summary of our contributions here.
- Mechanical Engineering
- Retail
- Transport logistics
What added value does Blockchain technology bring for your company?
So far, Blockchain technologies have been used by only 3% of medium-sized (family-owned) companies. This is the result of a survey of 1,444 German companies commissioned by the management consultancy FTI-Andersch. The reason: lack of knowledge, complex implementation and lack of existing solutions. Professor Gilbert Fridgen, holder of the PayPal Chair at the University of Luxembourg as well as founder of the Fraunhofer Blockchain Lab, and Dorothée Fritsch, Blockchain expert at FTI-Andersch, provide an assessment for relevant key industries: Logistics, Consumer Goods, Automotive, Engineering and Energy. Where does Germany stand - and what opportunities are there today?
- Mechanical Engineering
The 7 big challenges for the German mechanical engineering industry
The medium-sized German mechanical engineering sector appears to be struggling – even before the pandemic. The reason: Due to the good order situation in the past decade, many important trends were noted but not implemented. And so today there is a lack of know-how at the same time as increasing price pressure. In cooperation with Professor Dr.-Ing. Gisela Lanza, Head of the Production Systems Department at the wbk Institute of Production Engineering at the Karlsruhe Institute of Technology (KIT), we describe the most important trends in industry from today's perspective – and show what machine builders must do now to make up for strategic deficits.
Resilience Barometer 2021 - COVID REPORT
COVID-19 has tested businesses on all fronts – it has transformed the way we work, learn, consume, communicate and much more. And despite the unprecedented government stimulus packages supporting economies across the globe, our global economy remains in distress – from negative GDP growth to rising unemployment rates and unparalleled levels of government debt. The Resilience Barometer COVID Report examines the impact these trends and others have had on large businesses in G20 nations within the context of the pandemic, and the actions they are driving across their enterprise to plan for what is next and position their businesses to emerge even stronger.
- Retail
Impact of the COVID-19 pandemic on German inner cities
COVID-19 effects pose acute challenges for (German) city centers, they reinforce the structural change of recent years. How robust are the 52 largest German cities with regard to COVID-19 effects incl. effects on tourists, students, trade fair visitors, etc.?
COVID-19: A quick and effective, cost-efficient 'German Scheme' (ICR)
In the ICR (International Corporate Rescue) article our colleague Tammo Andersch and Ursula Schlegel (German lawyer and English solicitor) propose solutions for the imminent ‘German Scheme’ (driven by the EU Directive on Insolvency and Restructuring’) against the background of the aftermath of COVID-19 challenges. Ursula and Tammo suggest that the ‘German Scheme’s’ milestones, i.e. likelihood of insolvency, drafting and negotiation of the restructuring plan and the prospects of the restructuring plan to prevent insolvency should build into a modular system to be time and cost efficient; with the court, when confirming the restructuring plan, using the expert reviews underpinning these modules. It is also proposed for the expert providing such reviews to be appointed as PIFOR. The article crosses with the draft law on the same subject published by the German Ministry of Justice (BMJV), a draft law proposing – inter alia – a modular system for the imminent German preventive restructuring framework. Representatives of the German insolvency/restructuring industry are invited to comment on the draft law by 2 October 2020. (The ICR article was based on a German article published by Ursula and Tammo in German magazine INDat Report on 29 April 2020)
- Real Estate
Real estate industry – the end of a success story?
A minus of 25 to 30% in the textile retail trade – the Corona year 2020 threatens to become a disaster not only for the fashion industry but also for the landlords of the business units. Even the top locations will not be spared the expected increase in insolvencies. Suppliers must now prepare themselves for this - and act. The industry update provides an up-to-date overview of the entire market situation of the real estate industry during and after the Corona crisis.
Agricultural, food and timber industries between drought and COVID-19
Drought, pests, new regulatory requirements and changing consumer behavior: these are just some of the reasons why the number of insolvencies in the agricultural, food and forestry industries has been rising for years. In 2019 alone, a quarter more companies in Germany had to declare insolvency than in the previous year. We look at what farmers and foresters have to do now to make their businesses fit for the future.
- Mobility
Airport ecosystem in prolonged turbulence
The rising numbers of infections in the Corona pandemic threaten to paralyze travel once again after the summer vacations. Particularly affected: German regional airports, which have already had difficulties generating operating profits before. Recovery is not expected before 2024. What can airports and other companies in their ecosystem do now to position themselves more competitively for this phase in the long term?
Preventive restructuring
In the cover story of the latest INDat Report, our colleague Tammo Andersch and lawyer Ursula Schlegel present pragmatic approaches to achieving a time- and cost-efficient preventive restructuring framework, e.g. through a modular, step-by-step structure of the restructuring documentation geared towards usability by the court or a "personal union" of the restructuring expert and EU-Directive’s "professional in the field of restructuring”. [German version only]
Cash Protection: Gain transparency of your current liquidity situation
A thorough understanding of the current liquidity situation enables the management to assess the scope of action, implement suitable liquidity measures and make sound strategic decisions. We have many years of expertise, proven processes, and employ tailor-made software solutions. We provide transparency on the liquidity situation of your company in a time and resource-efficient manner. Key elements of active cash management include: (1) daily reports on the group-wide liquidity status; (2) a reliable short-term liquidity forecast and (3) active control of working capital. In order to establish an understanding of liquidity, a weekly Cash Desk shall be introduced to discuss and gradually optimise these elements.
COVID-19 – Individual impacts on key German industries
Our snapshot highlights direct and indirect impacts on 16 key German industries, as well as the outlook for the remainder of 2020.
Digital transformation in medium-sized and family businesses (German)
Only a minority of German family-owned companies are already using future technologies - only a small majority use basic IT 55% of German family-owned companies feel prepared for the challenges of the digital transformation. But only a minority of them already uses technologies such as cloud computing (38%), Big Data (19%) or applications for artificial intelligence (5%). These are the findings of a study conducted by the WHU Otto Beisheim School of Management, that examined which digital and IT technologies German family-owned companies are already using. The study, sponsored by Andersch, divides the technologies into four different categories: Basic IT, advanced IT, modern IT and future technology. "It is frightening that even in the use of basic IT, only a small majority of people are actually using these applications," says Professor Nadine Kammerlander, Head of the Chair of Family Businesses at WHU, who accompanied the content of the study. For example, 66% of companies use an ERP system to control business processes and suppliers, 55% send invoices electronically, 52% use social networks and 50% have introduced a digital system for managing customer relationships. Companies know about the potential, but have problems with investment, expertise and actual implementation "50% of the companies have told us that they already know about the application possibilities and performance potential of modern information technology," says Nadine Kammerlander. "However, a major hurdle mentioned was that the lack of technological interfaces between existing applications and new technologies in particular would limit the possible applications in practice. Further difficulties included acquisition and implementation costs as well as lack of know-how. Strategic partnerships and collaborations can help to develop a culture of innovation Nadine Kammerlander says: "In summary, it can be said that all that appears almost omnipresent in public discourse today, German family-owned companies only operate in a - sometimes single-digit percentage - minority. Pioneering technologies such as Blockchain or AI are even isolated cases. Many family-owned companies act according to their DNA: only when they are completely convinced of the use of a technology and believe that it pays off do they invest. This is a perfectly legitimate strategy. However, at the same time it also means that they cannot gain experience with the new trends and technologies outside of lectures and press coverage. The minority that is already using and trying out new technologies today will in future be more likely to be able to bring about necessary changes more quickly, in a more targeted and efficient manner. In the worst case, the majority of family businesses could, in the worst case, give up the possible competitive advantages of the future today". Mike Zöller, partner at Andersch, is very sympathetic to the problems of family businesses. "Companies with which we work often lack the necessary expertise and openness to innovation to deal with new technologies - sometimes in a playful and exploratory way," says Zöller. "Not every new technology will directly increase sales or profits. It is much more a question of investing today in order to remain competitive. Those who cannot or do not want to build up their expertise completely on their own should look for strategic partners and collaborations. These make it possible, even with limited resources, to try out new digital applications, analyze them and test them for their usability. At the same time, such an opening can be the first step towards a new culture of innovation". - - - - - - - - - - - About The study 'Digital Transformation in Medium-Sized and Family Enterprises' was conducted at the Chair of Family Enterprises at WHU Otto Beisheim School of Management lead by Prof. Dr. Nadine Kammerlander and with the support of Andersch. The study examines the question of how the current status of digital transformation in this business segment is to be assessed today. To this end, 1,727 top decision-makers from 1,444 companies were surveyed, 689 of which are majority-owned by families and 755 of which are non-family owned. 94% of the respondents are executives, 53% of whom are members of the management/board of directors and 34% are the respective chairmen of this body.
Resilience Barometer 2020
Companies across the G20 are facing increasingly complex risks arising from technology transformation, geopolitical tensions and the polarisation of the political landscape. As businesses confront cybersecurity threats, fight financial crime and prepare for more changes in legislation and regulation in 2020, the FTI survey reveals that many executives remain unprepared for a new wave of risks and crises. Upcoming elections in the United States, Brexit and the increase in cyber attacks and regulatory actions, globally, are just a few examples of the complexities driving new threats. The survey found that failure to fully understand and prepare for the impact of external threats could decrease revenue by as much as five percent, highlighting the imperative of resilience for businesses today. Encouragingly, in the face of such a dramatic increase in risk, the survey did point to a small improvement in resilience scores, suggesting that some organisations are managing to contain and manage emerging threats through better preparedness. 84% of business leaders surveyed were anticipating a crisis in 2020, with many stepping up their adoption of new technologies. Artificial intelligence, blockchain and machine learning are playing a particularly significant role both in transforming business models and combating global financial crime and cyber attacks. Learn more.
Temporary employment – a sector with many challenges
Germany: One seventh of the temporary staff is missing... The number of temporary workers in 2019 was 748,400, about 10% lower than in 2018, and a full 14% lower than in 2017, the industry's all-time high. As early as 2018, 10 of the 25 largest temporary employment agencies recorded their first revenue declines. The fact that industry revenues were nevertheless in a sideways movement overall is mainly due to a price effect (collective wage increases). However, due to the parallel increase in wage costs, the growth in sales did not lead to a significant increase in margins. Temporary employment is currently facing various challenges – the economic situation is only one of them. Learn more in our current industry snapshot:
- Industry
Wildfire in the steel industry?
After 31 years, DAX veteran Thyssen-Krupp descends from Germany's leading index, world market leader ArcelorMittal cuts back production at several locations, Salzgitter and Voestalpine suffer slumps in profits, Schmolz Bickenbach repeatedly collects its profit forecast and Klöckner & Co. is in the midst of restructuring. It is easy to see that the steel industry is in crisis. European demand for steel fell by 7.7% year-on-year in the second quarter of 2019. But it is not only the economy that is weighing on the industry: it is undergoing structural change, because even in peak phases steel consumption is growing only moderately. Steel is increasingly being replaced by alternatives. Added to this are rising energy and CO2 emission costs, which are impairing competitiveness in the global market. Our current industry snapshot highlights the current causes of the crisis and the prospects for the German steel industry.
German family businesses – more innovative than expected?! (German)
Internal corporate venturing (ICV) in family businesses How family businesses systematically develop innovation German family businesses and medium-sized businesses ("German Mittelstand") are often accused of lacking innovation and digitization capabilities. However, many traditional companies have already established innovation centres and their own units that develop new products and business models in a targeted manner. There are fundamental differences to both start-ups and corporations. Our study in cooperation with the WHU Otto Beisheim School of Management provides quantitative and qualitative insights. [German version only]
- Energy
- Mechanical Engineering
- Transport logistics
The (changing) business climate: (Credit) risks due to heat waves
Even though the early summer of 2019 was a long time in coming – the German Weather Service warned weeks ago that last year's heat wave could be repeated in 2019 and possibly even surpassed. This would have some dramatic effects in various sectors. Our current brief study illustrates the immediate consequences, in particular the significant impairment of the ability to service debt, using the sectors of trade, agriculture, industry and energy as examples.
Cash Protection – Legal Security and Liquidity Optimization
-Article published in the E-Book for GmbH Managing Directors 2019, EUROFORUM- Active cash management improves internal financing, enables optimal resource allocation, facilitates stakeholder management and, last but not least, creates legal certainty for corporate bodies. Even against the backdrop of rising global uncertainty and increasing downside risks in the eurozone, misjudgements of one's own liquidity budget should be avoided.
Shaping a digital future
Digital transformation must not be neglected, even in challenging situations, because it affects all industries and corporate divisions. Particularly in a restructuring context – when it comes to developing sustainable, resilient concepts for the future – the effects of digitization and the resulting demands on the company must be clearly worked out. How do we deal with this? Find out more about our tried-and-tested approach here.
- Retail
Sector update: Fashion industry
The number of companies in the fashion industry has consolidated from 396 (2008) to <250 (2018). Restructurings and insolvencies have increased in recent months. A trend that will continue in 2019 – for a number of reasons which we highlight in our latest sector update. Is an "orderly retreat" the only solution for this industry? Or are there concepts and innovations that open up opportunities and offer shopping incentives? Learn more in our latest sector update.
- Retail
Sector update: Furniture industry
For furniture manufacturers, the online sales channel is both a challenge and an opportunity: For many manufacturers, having an online presence is turning into a question of existential importance. This also offers the potential, however, of opening a door to direct sales. Rising challenges because of imports, changed distribution structures and consumer behaviour intensify current challenges and need for action. Learn more in our current industry sector update.
Sector update: Agri-food industry
The Agriculture and Food Industry has suffered huge economic upheaval caused by the heat wave in summer 2018. According to the German Farmers’ Association (DBV), it was the “worst harvest of the century”. The government has provided financial support to farmers whilst prices for agricultural products have increased significantly. What is the impact of these actions and the next steps? Find out more in our industry update.
- Energy
Sector Update: Wind Industry (German)
There are a number of warning signals in the wind industry, e.g. declining sales and earnings at Nordex or Vestas. The reasons include the difficult international environment (political risks, price pressure, USD exchange rate, Asian competitors). In Germany, the reformed energy law (EEG 2017) has made the tendering procedure for determining the feed-in tariff for all wind power systems binding. This system is intended to encourage the industry to achieve greater cost efficiency and prevent oligopolisation of the market, but also confronts the industry with major challenges. Learn more in our industry profile.
The influence of digitalization on traditional companies (German)
The 'fourth industrial revolution' ('Industry 4.0') brings fundamental upheavals and leads to the emergence of new business models, competitors, products and substitutes. This study analyzes the challenges and potentials arising for the furniture industry and the logistics sector and contrasts them with digital platform models. The publication is part of our study series "Industries in Structural Change". [German version only]
- Mechanical Engineering
Paradigm shift in the German Engineering Sector (German)
The 'fourth industrial revolution' ('Industry 4.0') is bringing fundamental upheavals for industrially based companies and leading to the emergence of new business models, competitors, products and substitutes. This study analyzes the challenges and potentials arising for the German mechanical and plant engineering industry and derives possible solutions for maintaining international competitiveness. This publication is part of our study series "Industries in Structural Change". [German version only]