Plant Engineering Company Transforms to Stay Competitive

A global player in plant construction and mechanical engineering transforms its operations to address changes in the competitive landscape.

An international plant construction and mechanical engineering firm experienced a ten-year period of strong growth, followed in recent years by a significant slowdown. The business volume had decreased, and price pressures and global competition had risen.

As a result, executives realized they needed to reshape and reorganize the company to adapt to the changes in market conditions.

BCG helped the company develop a detailed roadmap that defined measures to reduce the target business volume yet at the same time increase competitiveness and profitability. By employing external benchmarks and best practices, cost reduction levers and measures were identified and structural changes were made in order to help the company adjust to changes in plant engineering. The transformation process has helped the company embrace the necessary cultural changes needed to win, and it is quickly moving toward its goal of sustainable profitability.

BCG helped the company make the journey from cost reduction support to fundamental transformation. The journey progressed through three major steps:

  • Ignoring Reality. BCG was hired to support implementation of measures already identified. The client organization didn't expect major structural changes to happen, but in reality, drastic measures were required.
  • Moment of Truth.  BCG provided a wealth of external benchmarks and best practices. The company owner and board declared that nothing is unthinkable. Long-established taboos were removed, and the organization started to move.
  • Reinventing. The company launched a comprehensive transformation initiative that got rid of inefficient parallel structures. The firm went global, making its supply chain and sales setup truly international.
Engineered Products & Infrastructure