2017 Look Ahead: Industrials

by Jamie Ricketts

UK industrials firms are “Jacks in the land of Giants”, in the words of a leading research analyst.  What does that mean?  The US and mainland Europe has dominant manufacturing conglomerates, like Siemens and Emerson.  The UK doesn’t – it has focused, “key enablers” who tend to have those major conglomerates as well as SMEs, governments as customers. Does the weak pound mean they are vulnerable to bid interest in 2017? – writes Jamie Ricketts.

Weak sterling, Trump, Brexit and a challenging macro backdrop all point to greater interest in UK manufacturers from larger conglomerates and private equity.

There are broader ramifications too.

We are seeing a de-coupling in the sector.  Resilience on the one hand; profit warnings, stretched balance sheets and non-core disposals on the other hand … All pointing to a busy 2017.

How do we tell this story?

It is critical to get across how your business and strategy can capture growth, both for 2017 and the medium term – both to internal and external audiences.

The key here is laying out the market growth drivers and USPs, and from a broader perspective, what the identity and relevance of the business is.

This is easier said than done – and reflects how well the companies have diversified, invested for growth (IP, R&D, technology, talent, etc) and followed a clear and structured growth plan in recent years.

MHP is well placed to help you develop the right messages, audiences and timings in 2017.

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