Competitiveness, innovation, service transformation: the industrial equipment sector is facing a number of challenges in a complex, highly cyclical market 

The players in this sector design, manufacture, and market machine tools, robots, and equipment that are integrated into industrial production systems. There are two critical requirements: to maximize the competitiveness of this equipment by taking the needs of the industrial customer-integrator into account, and at the same time reconciling them with the margins imposed by tier 2 and tier 3 suppliers. We use all the Design-to-Cost tools: Value analysis, Benchmarking competitors, Reverse Costing of competitive products, simultaneous engineering including suppliers, low-cost sourcing… With more than 15 years of experience, Avencore’s track-record and multi-industry benchmarks guarantee our clients practical, effective solutions in this area. 

To get ahead of the game, industrial equipment manufacturers need to integrate the levers of “the factory of the future” (Internet of Things, augmented reality, Big Data, e-maintenance…) into their innovation process, to offer smart, interconnected products. Avencore offers industrial equipment manufacturers the benefits of its knowledge of the best technological solutions, from component suppliers and its insight into the expectations of industrial users, who are also their clients. 

In a landscape of heightened competition and shrinking margins, servitization is emerging as a major diversification lever for companies in the sector. This phenomenon translates into a transition from a model centered on selling products to an approach that integrates added-value services. As a result, manufacturers are positioning themselves as strategic partners, offering global solutions that go beyond the simple status of product suppliers. However, to take full advantage of this new business model and rise to the rank of service provider, an internal transformation of the company is essential: designing equipment to accommodate more connectivity, internal organization to process the data collected, training sales teams, etc.