Digital factory: Medium-sized companies do not yet pursue an integrated concept for Industry 4.0

Press releases   •   Mar 29, 2021 18:46 -12

  • Around two thirds of digitalization projects are only in the planning phase
  • Most applications have so far been standalone solutions and not part of an overarching digitalization strategy
  • The vast majority of companies want to increase investments in digitalization by 2023, despite Covid-19

Munich, March 2021: The fully digitalized factory is not yet a reality in German mid-sized manufacturing firms. Around two out of three projects in the field of Industry 4.0 have not yet progressed beyond the planning phase. In addition, companies tend to only have individual applications that are not optimally linked to the value chain. This is the finding of Roland Berger’s new study "NextGen production", for which managers and specialists at medium-sized companies from five industries were surveyed. The survey also shows that 70 percent of the respondents wish to increase their investments in the next two years – on average, 20 to 30 percent of the total investment budget is earmarked for digitalization.

"Although digitalization is high on most German companies’ agenda, the digital factory is still in its infancy," says Oliver Knapp, Partner and Head of the Next Generation Manufacturing innovation platform at Roland Berger. "In most cases, the existing applications are single-case solutions developed for very specific tasks. This shows a lack of clear prioritization and corresponding strategies. As a result, mid-sized companies are not utilizing the potential to optimize their processes and thus improve their international competitiveness."

40 percent of digital projects exist only as an idea
As the study shows, the majority of Industry 4.0 applications are still in the early stages of the implementation process: 40 percent of projects exist as an idea and 25 percent are in the planning stage. Above all, skepticism regarding profitability makes decision-makers shy away from concrete measures. Where new technologies are already being used, company representatives cite improving processes (64 percent) and reducing costs (44 percent) as the main drivers for digitalization, followed by increased quality (24 percent).

Medium-sized companies lack a clear digitalization vision
One quarter of digitalization applications used today fall into the category of Big Data and AI analytics. In the future, this share is expected to grow to 29 percent. The second highest number of use cases (23 percent) come under the area of advanced automation and robotics. Its forecasted share in the near future is also expected to be 29 percent.

"The most successful companies today are already those that integrate digitalization into their existing value creation and do not set it up as a parallel, separate process," says co-author of the study Marc Bayer from Roland Berger. "There is no doubt that Industry 4.0 will completely transform industrial production. If companies want to survive, their digitalization approach should cover all aspects, from production equipment to workforce skills to strategic research partnerships."

In the study, the authors develop a target image that conveys the path to the digital factory based on five dimensions – looking at both technology and organizational structure. This includes the development of a digital ecosystem that defines networks beyond one's own company, as well as the digitalization of production systems and central manufacturing processes.

Roland Berger, founded in 1967, is the only leading global consultancy of German heritage and European origin. With 2,400 employees working from 34 countries, we have successful operations in all major international markets. Our 50 offices are located in the key global business hubs. The consultancy is an independent partnership owned exclusively by 250 Partners.

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Private equity outlook 2021: Experts expect strong increase in M&A transactions with PE involvement

Press releases   •   Mar 24, 2021 19:42 -12

  • PE market in Germany expected to grow by approx. 5 percent, followed by Scandinavia and Benelux
  • Technology, media & software and pharma & healthcare are the most attractive sectors
  • Family businesses remain the most popular targets

Munich, March 2021: The private equity industry is optimistic about 2021: the vast majority of professionals (82 percent) expect an increase in M&A transactions involving private equity (PE) compared to the previous year. 37 percent estimate that the rate of increase will even be in the double digits. This was the finding of the new "European Private Equity Outlook 2021", for which Roland Berger surveyed around 2,500 PE experts across Europe.

"The confidence in the PE industry, despite the ongoing coronavirus pandemic, shows its resilience to economic changes," says Christof Huth, Partner at Roland Berger. "Looking at the overall economic situation, optimism prevails among PE experts – 85 percent expect positive economic development in 2021, with almost three quarters of our respondents assuming a U- or W-shaped recovery of the economy."

Strong differences between European countries
Driven by economic development, the European PE market is likely to grow again this year – led by Germany with a forecast increase of around 5 percent compared to 2020. Scandinavia and the Benelux countries follow behind: in these regions, an increase in M&A transactions with PE involvement of around 3 per cent is expected. The PE experts are more pessimistic about the development in Great Britain, with growth of just one percent expected.

Technology and health remain the most attractive sectors
When asked about the most attractive target sectors for private equity, the picture remains constant: technology, media & software (89 percent), pharma & healthcare (83 percent) and business services & logistics (71 percent) continue to be the most popular sectors for M&A transactions with PE involvement. "Technology and healthcare remain very exciting sectors for private equity investors due to their growth characteristics and resilience, which they also demonstrated during the coronavirus crisis," says Thorsten Groth, Principal at Roland Berger.

Around two thirds of the experts (65 percent) expect targets available in 2021 to be more attractive than those available in the previous year. Majority shareholdings in family businesses remains the most important source of targets, according to 52 percent of respondents. In terms of transaction volumes, the mid-cap and small-cap segments are seen as the most promising with deals up to €250 million.

Focus on prolongation of existing funds and fundraising
The PE industry wants to focus on the prolongation of existing funds and fundraising this year. More than half of the respondents anticipate no change in the competition for fundraising. Nine out of ten PE professionals expect the holding period for portfolio companies to be extended due to the coronavirus pandemic.

"When it comes to portfolio management, the most important value creation measures for 2021 are increased digitalization, investments in Industry 4.0 applications and add-on acquisitions," says Christof Huth. "In terms of exit options, secondary buyouts are likely to remain predominant."

With regard to valuation multiples, 82 percent of the PE experts consider assets to be overvalued. The vast majority also assume that valuation multiples will remain stable or increase slightly in 2021.

Roland Berger, founded in 1967, is the only leading global consultancy of German heritage and European origin. With 2,400 employees working from 34 countries, we have successful operations in all major international markets. Our 50 offices are located in the key global business hubs. The consultancy is an independent partnership owned exclusively by 250 Partners.

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E-Mobility Index 2021: Electric vehicles in strong demand despite corona pandemic – especially in Europe

Press releases   •   Mar 22, 2021 20:14 -12

  • China leads in battery production and overall ranking
  • Germany and France move up to second and third place
  • Electric vehicle sales rise in Germany, France, Italy and South Korea

Munich, March 2021: Producing the largest number of electric vehicles and battery cells, China leads in the overall and the industry ranking of the "E-Mobility Index 2021". In the market category, Germany climbed from fifth place to the top spot – due to an increase in sales of electric vehicles of over 250 percent. South Korea takes over the lead in terms of technology, because of constantly improving vehicle performance.

The "E-Mobility Index 2021", the country comparison for China, Germany, France, Italy, Japan, South Korea and the USA, which was jointly developed by the management consultancy Roland Berger and fka GmbH Aachen, examines the three indicators of market, industry and technology.

"The trend toward e-mobility has once again gained significant momentum in recent months. While overall sales in the automotive industry are down because of the coronavirus pandemic, e-mobility is on the rise globally," says Wolfgang Bernhart, Partner at Roland Berger. "Momentum will remain high because the industry has recognized the need to adapt and accelerate the transition. In 2021 and 2022 alone, more than 20 new electric models from German, US and Chinese manufacturers each are expected to hit the market."

One in eight vehicles in Germany is electric
Germany ranks first in the market category, ahead of France and China. Almost 400,000 electric vehicles were sold in Germany last year, representing an increase of over 250 percent. In terms of units sold, this means that Germany is now the second largest market for electric vehicles in the world, behind China. The share of electric vehicles in Germany’s overall market rose to 12.6 percent, with government subsidies in the form of purchase premiums supporting the upward trend. In France, where the electric car share is 9.5 percent, as well as in Italy and South Korea, the sales figures for electric vehicles also rose significantly. Italy demonstrated the best progress in terms of fully electric vehicle market share, which is up 376 percent. The USA and China recorded only moderate sales growth. "The upward trend in Europe, helped by government subsidies, indicates that the gap with China can narrow in the long term," says Alexander Busse, Senior Consultant at fka GmbH Aachen.

China still dominates production volumes
In terms of units produced, China continues to dominate both electric vehicles and battery cells. According to the authors' forecast, worldwide production of fully electric vehicles and plug-in hybrids will increase by 13 percent in the period from 2018 to 2023, compared to the previous period. China is also stepping up production activities in the field of batteries: domestic cell production capacity created in this period is expected to account for over 70 percent of global capacity.

"China is well ahead in cell production, yet Europe is on the right path. But the backlog in cell production can only be reduced with high investment and continuous optimization of technology, such as cell chemistry," says Wolfgang Bernhart.

Vehicle performance and diversity on the rise
South Korea takes the lead in the technology category. Overall, the average vehicle performance has improved and yet they still offer a very good price-performance ratio. While South Korean OEMs continue to enhance the technology in existing models, rather than introducing new models, in the other markets the following trend can be seen: Manufacturers are increasingly focusing on the production of new fully electric vehicles. In 2021 and 2022, Germany, the USA and China each plan to launch more than 20 new electric models. "Consumers now have a choice. They benefit from an ever-increasing variety of electric vehicles across all classes," said Alexander Busse, co-author of the study.

Roland Berger

Roland Berger, founded in 1967, is the only leading global consultancy of German heritage and European origin. With 2,400 employees working from 34 countries, we have successful operations in all major international markets. Our 50 offices are located in the key global business hubs. The consultancy is an independent partnership owned exclusively by 250 Partners.


fka GmbH Aachen

As a partner to the automotive industry, fka GmbH Aachen offers innovative vehicle technology solutions and strategic consulting. Starting from the complete vehicle, fka develops concepts and strategies on the key topics of sustainability, safety and mobility experience.

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Roland Berger underscores growth ambition and strengthens global operations with twelve new Partners

Press releases   •   Feb 07, 2021 21:17 -12

  • The consultancy adds eleven new members to its partnership in Germany, Canada, France, Portugal and the UK; one Senior Partner joins the firm
  • Six Partners are promoted to Senior Partner in China, Germany and the United States

Munich, February 2021: Roland Berger is expanding its partnership with twelve new members internationally, underscoring its growth ambition for 2021. The consultancy elevated five employees to Partner level and brought six new Partners in from outside the firm. In addition, Patrick Müller-Sarmiento, the former CEO of retail chain Real, rejoined Roland Berger as a Senior Partner at the beginning of the year. Six other consultants who were already Partners were promoted to Senior Partner.

"We have posted strong growth in recent months in spite of the adverse circumstances. The consultants we have promoted and brought onboard will help us continue to drive the positive development of our company going forward. I congratulate them all and look forward to a working with them for business success," said Stefan Schaible, Global Managing Partner Roland Berger. "The entire economy is facing transformation on a massive scale and it is time for resolute action to address this – the coronavirus crisis has ramped up the pressure on businesses all round. Companies will need to fundamentally review and reposition their business models, and some will find themselves doing so with tighter financial margins. Our consulting expertise is in demand as companies tackle this challenge and we want to stand shoulder to shoulder with our clients. It is our Partners' entrepreneurial thinking, sound expertise and outstanding commitment that enables us to do so."

Twelve new Roland Berger Partners globally

A total of five Roland Berger consultants have been promoted to Partner: Lennart Bösch and Marc Hesse in Germany, Eric Esperance and Olivier Hanoulle in France and Olga Talanova in the UK. The consultancy's lateral hires are Dennis Bücker, Maximilian Dressler (both in Germany), Siobhán Géhin, Stephanie Mills (both in the UK), Oona Stock (Canada) and João Hrotko (Portugal). The new intake is complemented by Patrick Müller-Sarmiento, who rejoins Roland Berger as a Senior Partner in 2021.

Six Roland Berger Partners have also been elevated to Senior Partner level: Thomas Fang in China, Per Breuer, Matthias Holzamer, Peter Magunia and Matthias Rückriegel in Germany and Frederic Choumert in the United States.

Roland Berger, founded in 1967, is the only leading global consultancy of German heritage and European origin. With 2,400 employees working from 34 countries, we have successful operations in all major international markets. Our 50 offices are located in the key global business hubs. The consultancy is an independent partnership owned exclusively by 250 Partners.

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Roland Berger commits to net zero emissions by 2028 and sets its sights on consulting for sustainable management

Press releases   •   Feb 03, 2021 19:41 -12

Munich, February 2021: After Roland Berger achieved climate neutrality in 2020, the company is setting itself further ambitious goals and is aiming for net zero emissions by 2028. In order to ensure transparency around reduction targets, Roland Berger has committed to the Science Based Targets Initiative (SBTi). To start this journey and get a full picture of the company's emissions, Roland Berger conducted a full accounting process in line with the GHG protocol to understand its carbon footprint. This was recently calculated in cooperation with South Pole – a leading project developer and provider of global climate action services. As a non-manufacturing company, so-called Scope 3 emissions, such as travel, account for a large part of Roland Berger's footprint.

Measures to achieve net zero emissions by 2028

Roland Berger will take a number of measures to reduce its CO2 footprint, including reviewing its existing company car policy, sourcing renewable energy, increasing the use of teleworking and reducing travel emissions. Any unavoidable carbon footprint will be offset via a certified portfolio of high-quality climate protection projects in the areas of reforestation, prevention of deforestation, energy efficiency and renewable energies. In addition, by continuously increasing its offsets, Roland Berger will not only reach net zero emissions by 2028 but will also aim to remove more carbon from the atmosphere than it emits.

Stefan Schaible, Global Managing Partner: "We are convinced that the world needs a new sustainable paradigm that takes the entire value cycle into account. The reduction of emissions, innovations in the use of resources, the reorganization of supply chains, and new production methods are becoming decisive competitive factors. As a global consultancy, we are also fully aware of the impact of our business on the climate. Not only do we want to lead by example in our industry, but we also want to demonstrate effective ways of doing business sustainably to our clients."

Consultancy approach with a focus on sustainable management

With a new strategy, which was adopted by its 250 Partners, Roland Berger is also placing solutions for sustainable management at the center of its consulting approach. As part of this strategy, the consultancy has identified four innovative areas in which it has bundled its competencies globally: Sustainability and Climate Action, Smart Mobility, Robust Organizations, and Next-Generation Manufacturing. Roland Berger has built teams in each of these fields to support clients in a wide range of projects, from supply chain reorganization and technology strategies to sustainable financing issues. The teams will also lend their expertise to Roland Berger's organizational units, each of which focuses on consulting services in a specific industry or functional area. 

Roland Berger, founded in 1967, is the only leading global consultancy of German heritage and European origin. With 2,400 employees working from 34 countries, we have successful operations in all major international markets. Our 50 offices are located in the key global business hubs. The consultancy is an independent partnership owned exclusively by 250 Partners.

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Patrick Müller-Sarmiento joins Roland Berger as head of the global consumer goods practice

Press releases   •   Dec 22, 2020 21:54 -12

Munich, December 2020: Patrick Müller-Sarmiento is rejoining Roland Berger as a Senior Partner. From January 2021, he will be heading the global Consumer Goods & Retail practice and joining the extended global management team as the member for Health & Consumer. With a seat on the Innovation Board, Müller-Sarmiento will also be helping the consultancy develop its future business portfolio. This will include highly innovative strategies and services that support companies in the process of digitalizing their business models while also taking the necessary steps towards a sustainable economy.

Patrick Müller-Sarmiento had left to join retail chain Real in 2012, initially as a member of the management board. He then became CEO in 2016, a role which he brought to a conclusion with the sale of the corporation to an investor. His responsibilities encompassed all food and non-food procurement, quality management, as well as the retailer's marketing and online/new business activities. Müller-Sarmiento drove the establishment of digital platforms and also redesigned the brick-and-mortar store outlets. He had previously spent ten years working for Roland Berger from 2002 onwards, latterly as Senior Partner.

Stefan Schaible, Global Managing Partner: "Patrick Müller-Sarmiento's leadership experience and his flair for innovation in consumer goods and retail will further enrich Roland Berger's consulting expertise. We are delighted to be able to welcome him back into the Roland Berger family."

Patrick Müller-Sarmiento: "The pandemic has caused a further heightening of the global pressure for transformation across the business landscape. I am very excited to be tackling the daunting challenges facing the consumer goods industry with our clients and our teams. There is a lot to do."

Roland Berger, founded in 1967, is the only leading global consultancy of German heritage and European origin. With 2,400 employees working from 35 countries, we have successful operations in all major international markets. Our 52 offices are located in the key global business hubs. The consultancy is an independent partnership owned exclusively by 250 Partners.

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Pandemic intensifies margin pressure on automotive suppliers – sales expected to decline globally by 15 to 20 percent in 2020

Press releases   •   Nov 25, 2020 19:55 -12

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  • EBIT margins fell to a historic low of 1.7 percent in the first half of 2020
  • Car sales in North America and Europe expected to reach pre-crisis levels only after 2026
  • Suppliers must balance restructuring and strategic realignment

Munich/Frankfurt, November 2020: Electromobility, autonomous driving and digital transformation of cars: Technological change continues to put pressure on margins of automotive suppliers. The Covid-19 pandemic has further intensified this trend. As a result, this year's global sales are expected to slump by an average of 15 to 20 percent compared to 2019. Suppliers’ average EBIT margin fell to 1.7 percent in the first half of 2020. The pandemic’s effect on automotive suppliers is revealed in the "Global Automotive Supplier Study 2020" from Roland Berger and Lazard. The study analyzes performance indicators of approximately 600 suppliers around the globeto assess the current state of the industry, as well as trends and challenges.

"Despite difficult underlying data, a brighter year-end is emerging. Automotive suppliers are able to stabilize financially, mainly thanks to the rapid recovery process in China," says Felix Mogge, Partner at Roland Berger. "However, many suppliers lack the capital for the necessary technological transformation following the slump.”

Poor key figures affect creditworthiness

Overall, the coronavirus shock will affect the automotive industry for a long time to come. The peak volume of global vehicle sales that was reached in 2017 (94.3 million) is not expected to be met again until 2026. In Europe and North America, it will take even longer while China and South America will recover more quickly, according to the report.

Together with poor key financial indicators, these forecasts may have a negative impact on the creditworthiness of automotive suppliers. "In 2019 we already observed banks becoming more restrictive in their credit financing," says Christof Söndermann, Managing Director at Lazard. "In recent months, many suppliers were confronted with rating downgrades. This increased financial pressure further."

Lessons from the post financial crisis era 2008/09

The current situation can be compared to the global financial crisis in 2008 and 2009. In the period that followed, some automotive suppliers benefited more than the average. "We identified four general characteristics that were crucial to success after the financial crisis," says Felix Mogge. "Suppliers can use these to orient themselves and gain a better position in the market based on clear strategic guidelines."

One characteristic that will distinguish the winners from the losers of the coronavirus crisis in coming years is consistent market and technology leadership in every business area. Another is strategic coherence, which includes having a coherent product portfolio that allows for the realization of synergies. The third characteristic is the achievement of a critical company size to ensure sufficient access to the capital markets. Finally, winners will demonstrate consistent implementation of their strategic decisions and a performance-driven corporate culture.

Balancing act between restructuring and strategic realignment

Technological change and the effects of the Covid-19 pandemic will continue to impact the margin performance of automotive suppliers for the foreseeable future. "The challenges of the coming years will structurally overwhelm many suppliers," predicts Felix Mogge. "As a consequence, we will see greater consolidation in the industry." In order to be among the winners in this environment, automotive suppliers must strategically develop their business and at the same time significantly reduce costs.

"An automotive supplier’s CEO and management team have to walk a fine line: On the one hand, they have to consistently restructure or exit their commodity activities, while on the other hand, they must take risks with intelligent capital spending to develop new areas for future profitable growth," says Christof Söndermann. "We therefore expect to increasingly see strategic cooperations in order to achieve relevant scale or to get access to new technology more quickly."

Roland Berger

Roland Berger, founded in 1967, is the only leading global consultancy of German heritage and European origin. With 2,400 employees working from 35 countries, we have successful operations in all major international markets. Our 52 offices are located in the key global business hubs. The consultancy is an independent partnership owned exclusively by 250 Partners.

Lazard

Lazard, one of the world's preeminent financial advisory and asset management firms, operates from more than 40 cities across 25 countries in North America, Europe, Asia, Australia, Central and South America. With origins dating to 1848, the firm provides advice on mergers and acquisitions, strategic matters, restructuring and capital structure, capital raising and corporate finance, as well as asset management services to corporations, partnerships, institutions, governments and individuals. For more information on Lazard, please visit www.lazard.com. Follow Lazard at @Lazard.

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The traffic of the future is taking off: Air taxis open up huge market potential

Press releases   •   Nov 09, 2020 20:19 -12

  • Market volume of USD 90 billion a year and 160,000 air taxis expected by 2050
  • Investments increase more than twenty-fold in the first half of 2020 compared to 2016 – despite corona crisis
  • More than 110 cities around the world are working on Urban Air Mobility solutions

Munich, November 2020: In the coming years, air taxis will supplement private transport in urban areas. The first cities are already testing and planning this future: Demo flights have been conducted in Guangzhou, China, since 2018; the first aircraft are scheduled to transport people around the Olympic games in Paris, France, in 2024; and test flights are soon to be performed in Dallas, USA. The segment of manned Urban Air Mobility (UAM), or the expansion of urban transport systems into the airspace, is expected to reach an annual market potential of USD 90 billion by 2050. This is shown by Roland Berger in their latest study "Urban Air Mobility - USD 90 billion of potential: How to capture a share of the air taxi market”.

"We estimate that there will be about 160,000 commercial air taxis in the air by 2050," predicts Manfred Hader, Partner at Roland Berger. "Companies that produce cars, planes or helicopters today, as well as newcomers, can tap into a large market if they position themselves accordingly in the coming years.” Roland Berger's experts expect dynamic growth, especially between 2030 and 2050.


M
ore than 110 cities worldwide are pursuing Urban Air Mobility projects

There are already more than 110 passenger UAM projects in cities around the world. Half of these are from Europe. Startups and established companies (manufacturers of aircraft, helicopters and vehicles) are developing air taxis and services for various sectors.

Even the corona pandemic, which has shocked large parts of the global economy and the traditional aviation industry in recent months, could not ultimately harm the rise of UAM: In the first half of 2020, investments in startups in this sector totaled USD 907 million – significantly more than in the whole of 2016 (approximately USD 40 million).

Currently two developments are giving the industry a boost. "Public acceptance of the technology is growing with every test flight and the regulatory authorities in Europe and the US are now dealing with the issue so seriously that legal hurdles can be overcome in the foreseeable future," says Dr. Stephan Baur, Principal at Roland Berger.

Looking to a promising future

In order to generate valid figures on future development, the authors of the study collected data from 1,200 major cities and cumulated them into four business model archetypes. They conclude that three different areas of application can be identified for the future: City Taxis with a range of 15 to 50 kilometers, Airport Shuttles with the same range and Inter City flights that can cover distances of up to 250 kilometers. The industry is therefore likely to specialize in roughly equal parts in the production of three different types (36% City Taxi, 35% Airport Shuttle, 29% Inter City).

However, the margins that can be achieved with these respective air taxis differ significantly: "By 2050, Airport Shuttle and Inter City services together will take the lion's share, about 90% of revenues," says Manfred Hader. As early as around 2025 the first providers will enter the market and offer these services. "As a result, we expect a transition to a premium model of public transport in which UAM services will become increasingly similar to today's taxi services".

But not only air taxi manufacturers will get a piece of the 90-billion-dollar pie. An entire ecosystem is growing around UAM. As a result, the market will become more disparate and lead to a number of different business models in various sectors. "It goes far beyond the pure air taxi – the market is growing alongside the infrastructure, which includes airfields, services, flight operations, ticket brokerage and repairs," says Dr. Stephan Baur. "At the moment we assume that air taxi manufacturers – similar to the automotive industry – will initially dominate the market. In any case, companies must clearly position themselves in this new ecosystem".

Roland Berger, founded in 1967, is the only leading global consultancy of German heritage and European origin. With 2,400 employees working from 35 countries, we have successful operations in all major international markets. Our 52 offices are located in the key global business hubs. The consultancy is an independent partnership owned exclusively by 250 Partners.

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Roland Berger boosts its ranks with eight new Partners in China, Germany, France, Middle East, Austria and Switzerland

Press releases   •   Nov 08, 2020 20:04 -12

Munich, November 2020: The Roland Berger partnership has strengthened its ranks internationally. With the appointments of Alexander Eppler(Hamburg), Niko Herborg (Frankfurt), Daniel Hirsch (Stuttgart), Romain Lucazeau (Paris), Faris Momani (Zurich), Gundula Pally (Vienna), Feroz Sanaulla (Dubai) and Jun Ye (Shanghai), the consultancy is sending a clear growth signal even as the global pandemic continues.

Alexander Eppler, Niko Herborg and Romain Lucazeau are already with Roland Berger and their promotion to Partner takes them to the next stage in their career progression. The other individuals are joining the consultancy upon their appointment. Gundula Pally will assume an extended management role in Austria as Managing Partner, taking the helm of the Vienna office alongside Roland Falb. All of the new Partners specialize in different areas of expertise and will bring their experience to bear for the benefit of the Automotive, Civil Economics & Infrastructure, Consumer Goods & Retail, Financial Services, and Restructuring, Performance, Transformation & Transaction Competence Centers.

"With these newly appointed Partners, our partnership gaining a group of people who are successful entrepreneurs as well as highly competent and seasoned experts in their field. Each of them will contribute to the success of Roland Berger worldwide. I congratulate all of them and I am delighted to welcome them into the partnership," says Stefan Schaible, Global Managing Partner Roland Berger. "In these times of Covid-19, as the pandemic pushes society and the economy to the limits, we strive to be by our clients' side with help and support. Because what businesses and institutions need right now is good advice in the form of creative solutions that add measurable value. We are already extremely well placed to provide this, and our new colleagues will help us strengthen the strong foundations on which we stand."

Images of the new Partners are available here: https://rolandberger.mynewsdesk.com/latest_media

Roland Berger, founded in 1967, is the only leading global consultancy of German heritage and European origin. With 2,400 employees working from 35 countries, we have successful operations in all major international markets. Our 52 offices are located in the key global business hubs. The consultancy is an independent partnership owned exclusively by 250 Partners.

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Global rail market grows despite COVID-19

Press releases   •   Oct 01, 2020 18:21 -12

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  • World market for rail technology reaches a new record high of EUR 177 billion in 2019
  • COVID-19 pandemic leads to losses in 2020 (-8%) but stable growth is expected again by 2025
  • Trade restrictions and lack of market access pose risks to European suppliers

Brussels/Munich, October 2020: The global market for rail technology has survived the COVID-19 pandemic relatively unscathed and will emerge from the crisis stronger in the medium term – despite an 8% slump in 2020. This is the assessment of the "World Rail Market Study: Forecast 2020 to 2025", which Roland Berger conducted on behalf of UNIFE, the Association of the European Rail Supply Industry.

"The rail transport market has been hit by the pandemic, which has temporarily interrupted the strong growth that we were experiencing. Nevertheless, after a challenging 2020 we are confident that the various stimulus plans together with the increasing demand for sustainable mobility solutions will lead to a solid market recovery, translating into a 2.3% compound annual growth rate between the periods 2017-19 and 2023-2025," said Henri Poupart-Lafarge, Chairman of UNIFE, and Chairman and CEO of Alstom.

Record volume of EUR 177 billion
A record market volume of EUR 177 billion was reached at the end of 2019, proving the appeal of rail transport in all of its forms, ranging from urban metro to commercial freight. The sector has grown by 3.6% annually since 2017. The strongest driver was the rolling stock segment (up 6.8%), followed by rail control solutions (up 4.1%) and the infrastructure market (up 2.3%). By comparison, growth in the services market was rather moderate at 0.9%.

The "installed base" (i.e. the number of vehicles in operation and the existing route network) has also seen steady growth. Since the last assessment (2018), the global rail network has been extended by 23,300 kilometers and the number of vehicles has increased by 20,000 units.

Looking at the global distribution of growth, it becomes clear that, "the Asia-Pacific region and Western Europe made the largest contribution to the positive development of the entire market with 5.3% and 3.8% respectively," as Andreas Schwilling, Partner at Roland Berger, explained. Compared to the last study, only the Africa/Middle East market showed a slight decline (-1.2%), while all other markets grew.

Positive medium-term outlook
The experts estimate that the market will develop positively in the medium and long term, with an average annual growth rate of 2.3% until 2025 despite an 8% decline in 2020 caused by the COVID-19 crisis. The total market volume is expected to reach EUR 204 billion by 2025. This assumption is based on a rapid recovery of the market, which the authors consider probable under the so-called V-case scenario.

Different global developments are likely to continue to fuel rail market growth in the future. "Megatrends such as urbanization, global population growth and growing environmental awareness will lead to higher passenger numbers, while digitalization and automation will make the rail sector more attractive," said Andreas Schwilling. He added that the increasing environmental awareness shown by political programs such as the European Green Deal, the planned shift of traffic to railways and the inevitable expansion of public transport in major cities would also guarantee the positive development of rail. However, public funding will need to be ensured and sustained to achieve that progress.

International trade barriers as a threat to growth
International trade barriers, such as shrinking accessibility in Asian markets, have developed into serious impediments to rail sector growth, the study warns.

As a result, the share of the world market for railroad technology that remains accessible to European companies has shrunk slightly from 63% to 62% since the 2018 study. A market volume of EUR 67.1 billion remains unattainable for European companies and this could be worsened by the current economic downturn.

"The market should be equally open to all rail suppliers, whether domestic or foreign," stated Philippe Citroën, Director General of UNIFE. "A level playing field is crucial for efficient rail systems, and we call on institutions to ensure that competition is fair as a means of preventing any further decline in market accessibility."

Roland Berger, founded in 1967, is the only leading global consultancy of German heritage and European origin. With 2,400 employees working from 35 countries, we have successful operations in all major international markets. Our 52 offices are located in the key global business hubs. The consultancy is an independent partnership owned exclusively by 250 Partners.

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About Roland Berger

Roland Berger

Roland Berger, founded in 1967, is the only leading global consultancy with German heritage and of European origin. With 2,400 employees working in 34 countries, we have successful operations in all major international markets. Our 50 offices are located in the key global business hubs.
Roland Berger advises major international industry and service companies as well as public institutions. Our services cover the entire range of management consulting from strategic advice to successful implementation: e.g. new leadership and business models; innovative processes and services; M&A, private equity and restructuring; and management support on large infrastructure projects.

Our firm is owned solely by a group of 250 Partners. We share the conviction that the firm's independence provides the basis for unbiased advice to our clients.

All employees at Roland Berger are committed to our three core values
Entrepreneurship – We follow an entrepreneurial approach and provide creative and pragmatic solutions.
Excellence – We achieve excellent results and develop global best practices to ensure measurable and sustainable success.
Empathy – We are insightful and responsible advisors and we contribute to the greater good.

At Roland Berger, we combine sound analyses with creative strategies that generate real and sustainable value for the client. We develop and consolidate our expertise in global Competence Centers that focus on specific industries and functional issues. We handpick interdisciplinary teams from these Competence Centers to develop the best solutions.

Address

  • Roland Berger
  • Sederanger 1
  • 80538 München
  • Deutschland