Industry Perspectives for 2012

Throughout 2011, our thought leadership focused on the importance of identifying and building a system of differentiating capabilities — the three or four things that a company does exceptionally well that set it apart from its competitors — and we will continue to develop these ideas in 2012 and beyond.

Our industry perspectives, written by the leadership of Booz & Company’s industry practices, examine industry-wide trends, identify key decisions leaders need to make in 2012, and discuss the capabilities that companies need to build in order to be successful in this challenging global economic environment.

Aerospace & Defense

The global aerospace and defense industry is undergoing dramatic change. In defense, the deepening downturn has many companies evaluating moves into adjacent markets, while in the growing commercial aerospace market, suppliers are strengthening their position with airframe manufacturers.read more >

Automotive

For U.S. automakers and suppliers, 2011 can best be described as 12 months of mixed results, leaving unanswered questions about the future direction of the industry and what is required for manufacturers and suppliers to thrive.read more >

Chemicals

Not long ago, the center of the global chemical industry seemed destined to be moving to the Middle East from North America and Europe, propelled by the ready availability in the Arab world of relatively inexpensive oil as a feedstock. That idea has now been turned on its head.read more >

Consumer
Packaged Goods

Although merger and acquisition activity has not yet returned to the peak levels of the mid-2000s, the restructuring of assets is still one of the industry’s most notable trends and expansion in emerging markets remains a major driving force.read more >

Financial Services –
Capital Markets

As the economic recovery takes a fragile hold, we see several powerful market trends significantly altering the economics of the financial services industry. In response to these trends and to remain competitive, many companies will need to reassess their business models, operations, and technology infrastructure.read more >

Financial Services –
Retail Banking

Since the financial crisis, many in the retail banking industry have assumed or just hoped that revenue challenges would be a cyclical phenomenon. But is not the case; a structural, secular shift is under way; the industry is transitioning from a high-margin business to a lower-margin one.read more >

Financial Services –
Wealth & Asset Management

If being an investor in the current economic climate is challenging, so is operating a wealth management firm. As grim as this picture is, wealth management firms should resist the temptation to batten down the hatches and wait for the storm to blow over.read more >

Healthcare –
Payor/Provider

This year’s healthcare industry news wasn’t entirely bad, although it offered little resolution to a long list of ongoing challenges and dilemmas, specifically, there's more questions than answers about the future of the U.S. health system. The uncertainty won’t go away soon — or all at once.read more >

Healthcare –
Pharmaceutical

Pharmaceutical companies confront patent challenges at a time when growth in the overall industry is slowing and demand is shifting to generic segments and emerging markets. We expect these trends to continue in 2012.
read more >

Industrials

The future for industrial companies is a somewhat confusing blend of results; though industrial revenues (unadjusted for inflation) in the first nine months of 2011 topped levels last seen in the peak year of 2008, consumers and companies are still hesitant to spend their money.read more >

Oil & Gas

Never has the old adage that “the only certainty is uncertainty” been truer for the energy sector. In 2011, the strong emphasis on green energy evaporated as country after country withdrew support for renewables, while natural gas took center stage. Japan’s Fukushima earthquake tainted the prospects for nuclear energy, and oil remains extremely sensitive to ongoing price volatility and supply uncertainty.read more >

Retail

In 2011, fears of a double-dip recession caused consumer confidence to sink again. Our annual consumer survey found that spending was most constrained among low-income shoppers, who continued to feel recessionary pressures. As one might expect, shoppers at the higher end felt less squeezed.read more >

Technology

The technology industry has long been characterized by change, but 2011 stands out as a year of shocks and surprises — and we expect more in 2012. Former industry leaders have been stumbling in the face of missed trends, while others have made enormous gains in creating new value.read more >

Telecommunications

In 2011, the telecom industry has finally managed to come to terms with two major global shocks: the global economic downturn that continues to adversely affect the performance of operators in markets around the world, and the disruption caused by digitization.read more >

Utilities

Another tumultuous year for the utilities industry has ended, and the sector again finds itself wondering whether unpredictability is simply a hallmark of its future. From our perspective, the most successful companies in this industry will be those that are adept at dealing strategically with this ambiguity—and can build the capabilities they need to enable superior performance in the future.read more >