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Industrial manufacturing
Industrial manufacturing is about the purchasing, production and selling of physical goods, with inventory involved throughout the process. We can advise on the various considerations in the manufacturing process, including:
- Production demand
- Inventory characteristics
- Production capacity, levels, trends (material requirements planning)
- Production technology, trends and conditions
- Labour market characteristics, conditions and trends
- Manufacturing characteristics.
We can also help your business with the challenges - and opportunities - currently facing the industrial manufacturing sector, such as
- Emerging markets
- Re-emergence of deals
- Simplifying and improving efficiencies
- Recruiting, developing and retaining resources
- Environmental regulations.
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How we can add value
- Tax issue
- Sustainability issue
- Digital Operations
- Cost and profitability pressure
- Changing consumer behaviour
Tax issue
There are a number of tax allowances and incentives available to businesses that operate in the industrial manufacturing sector. We can assist in applying for and implementing the following:
- Accelerated allowances
- Industrial policy project
- Employment tax incentive
- Learnership allowances
- Research and development
- Energy efficiency savings
Sustainability issue
Net-zero agenda has finally crystallised climate change as a strategic issue for industrial manufacturing businesses
- By January 2020, almost 200 global companies committed to achieve “net-zero” (by 2050) emissions across their operations, value chains and services; a movement that has doubled in size since it began in September 2019 and achieving the pledges will need radical enterprise and supply chain transformation, including identifying and scaling nascent technologies and disruptive business models.
- We see the industrial manufacturing companies’ response to net-zero being underpinned by a number of imperatives, with digital transformation embedded as the enabler for much of the systemic changes that will occur.
- We assist our clients in navigating these elements over the short, medium and long term while maintaining profitability and market share through:
- Focusing on transformation: move away from sustainability as a niche offering and embed net zero into everything we do.
- Creating blended teams: bring together relevant skills like strategy, technology, supply chain, industry experts and the like to be distinctive in the market.
- Delivering through assets: leverage best-in-class, proprietary assets (e.g. digitally-enabled analytics) and harness existing frameworks (e.g.Fit For Growth; Industry 4.0).
Digital Operations
Digitisation is revolutionising the way we work, the skillsets we need and the way we structure our organisations.
PwC can help companies navigate pressing questions surrounding 4IR.
For a broad archive of PwC’s research and insights into 4IR, please visit our 4IReady microsite.
Cost and profitability pressure
Manufacturing companies have become accustomed to repeated cost-cutting efforts to stabilise profits, address shareholders, and invest for the future. But cost reduction alone can stifle growth. The pressure for a new level of performance is high, along with the need to create a swifter path to growth and profitability.
Making fast, smart decisions hinges on focus. Aligning cost with strategy means transforming how businesses operate, weeding out operational inefficiencies and creating the capacity to invest in important growth priorities.The result: a stronger, leaner, more focused organisation primed for growth.
We help businesses transform to be strategically aligned with their priorities. We help create a “fit-for-growth” strategy, freeing up opportunities that support the company’s unique culture, capabilities and ambitions. We bring firsthand regional perspectives to help shape local or global operations strategies, including talent, tax, technology and regulations.
Changing consumer behaviour
Industrial manufacturing companies are facing a number of headwinds, including a continued slowdown in growth, DTC brands, and increased pressure on margins. On top of that, the Fourth Industrial Revolution (4IR) has finally come of age. 4IR is the era of artificial intelligence, genome editing, biometrics, 3D printing, IoT, renewable energy, and autonomous vehicles.
Against the backdrop of all this uncertainty and disruption, industrial manufacturing companies are addressing a growing set of challenges. Organisations must capitalise on changing trends and prepare their commercial organisations for growth and digitisation.
Powered by the Salesforce Consumer Goods Cloud, PwC’s Connected Digital Front Office solution provides an integrated suite of solutions that accelerate growth and productivity across retail execution, sales, service, commerce, trade promotion management, analytics, and more.
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Contact us
Pieter Theron
Industrial Manufacturing and Forest, Paper and Packaging Leader, PwC South Africa
Tel: +27 (0) 11 287 0501
