Industry-specific consulting for
Construction and agricultural machinery
For over 30 years, TMG Consultants has been supporting industry-leading companies in strengthening their innovative power, optimizing structures and growing profitably – worldwide and along the entire value chain.
The construction and agricultural machinery sector not only stands for technological excellence, but also plays a central role in Germany’s industrial value creation. German manufacturers are among the international leaders in excavators, cranes and rollers as well as tractors, harvesters and forage technology. However, in view of the difficult market environment and complex requirements, the industry is facing major challenges. Manufacturers of construction and agricultural machinery must realign themselves strategically and operationally with a clear focus on technology, value creation, efficiency and differentiation.
Industry in transition
What are the current challenges in the construction and agricultural machinery industry?
The construction and agricultural machinery industry is currently facing a challenging environment. As a result of economic downturns, declining construction investments and rising financing costs, end customers’ investment budgets are shrinking. At the same time, cost pressure is increasing along the entire value chain. At the same time, new emissions regulations, automated assistance systems and increasing electrification are demanding a far-reaching technological transformation. In addition, there is a noticeable shortage of skilled workers in production, service and engineering. With an export share of 70% and global supply chains, the industry is particularly affected by the current geopolitical uncertainties.
Strategies for the future
What is the current need for adjustment and optimization?
In order to remain fit for the future, companies in the sector need to make consistent use of several levers:
- Push ahead with a technology offensive:
Integrating alternative drive technologies (e.g., hybrid or hydrogen solutions), smart sensor technology, and digital control systems is essential to meeting sustainability, automation, and efficiency requirements. - Refine the global market strategy:
Growth markets, such as those in South America, India, and Southeast Asia, are becoming increasingly important. Therefore, manufacturers must align their product portfolios regionally while creating more resilient structures through local value creation. - Increase production flexibility:
Fluctuating demand and individual customer requirements call for agile production systems, modular machine platforms and greater end-to-end digitalization – from order processing to delivery. - Review cost structures:
Indirect areas in particular, such as R&D, purchasing and administration, offer significant efficiency potential that can be leveraged through systematic benchmarking programmes and digitalization. - Expand aftermarket strategies:
Spare parts supply, predictive maintenance and remote support are increasingly becoming sales and margin drivers – especially in times of cyclical fluctuations in the new machine business.
Industry expertise
Selected reference customers for construction and agricultural machinery
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