Aiming higher - How manufacturers are adding value to their business

By:Economist Intelligence Unit

As manufacturers nurse their wounds after the worst recession since the 1930s, many are taking a long, hard look at their business models and making some changes. For many companies, this has meant increasing the proportion of revenue generated by non-traditional activities such as service provision. For others, the soul searching has prompted a move from high-volume goods to high-value products.

Although some of this was going on before the global financial crisis hit, the downturn has forced manufacturers to step up their flight to value. With orders shrinking and the crisis threatening the security of supply chains, many companies had to rein in their ambitions and focus more narrowly. At the same time, cost-conscious industrial customers started to demand better value for money, such as including post-purchase maintenance servicing as part of the deal.

Whether prompted by a fight for survival or a desire to get ahead of the competition, high-value or value-added manufacturing is proving an increasingly popular business...