The car market in the US is back on track. For 2011, experts expect about 13 million new cars to be sold. In doing so, the economic development and state subsidies can be vital. This is why Ford and General Motors have a good chance for a comeback, says Dr. Andreas Gissler, Director of the Automotive Practice at Arthur D. Little. The German carmakers will also profit as thrifty vehicles will be in stronger demand.
Nuclear power projects are booming. Globally, there are currently 170 projects with 560 reactors either planned or under construction. They comprise a volume of 2.2 trillion Euro. Although nuclear power is rather unpopular in Germany, many companies thrive on it. Siemens and other small and medium sized companies export their knowledge to almost everywhere in the world – but not in Germany. “Companies with special expertise on cooling towers are not only capable of building them for coal-fired power plants but also for nuclear power plants“, says Michael Kruse, one of the authors of the recent Arthur D. Little study. “And usually those firms don’t let this business opportunity go down the drain,” he continues.
Huge rebates are back up in car sales outlets and prices for new cars are soaring again. Car manufacturers are using this additional turnover for new models and cleaner techniques. The trend to equip cars with more and more IT technologies is expensive. Dr. Andreas Gissler, Arthur D. Little director, estimates that “Offers for infotainment will result in higher prices by all manufacturers in 2011“. He goes on to say “Nowadays, even small cars are equipped with technology that the customer has to bear.”
Emirates demonstrates how it has been unharmed by the global economic crisis by extending its fleet from 155 to 400 long distance airplanes, increasing the pressure on Lufthansa, Air France and British Airways. Another advantage of the carrier is that Emirates’ cost structure is a third lower than those of European carriers, according to a recent Arthur D. Little study. Emirates does not operate a short distance network and their airplanes are utilized about 18 hours per day giving it further competitive advantages.
Employment in the pharmaceutical industry was still in decline in 2010 but the R&D changes reinvigorate the market. This situation was analysed in an Arthur D Little study for the LEEM in 2007.
The younger gulf airlines order approximately three times more planes than their European competitors. Due to these investments, they will soon work with the largest fleets in the aviation industry. Moreover, their operating expenditures are 30% below those of their competitors, according to a recent Arthur D. Little study. These savings can be realized through smaller fees for airports and air traffic control, but also through lower costs for staff.
Siemens and Nokia plan to sell a significant share of their joint venture Nokia Siemens Networks (NSN) to an investor. The objective is to go public with the network supplier. But it needs several clearances for this. “New Values will only be generated at NSN, if the shareholders do not get in the way of the necessary restructuring-measures,” says Klaus von den Hoff, global director at Arthur D. Little.
The French Pharmaceutical Companies Association’s (LEEM) December measurement indicator revealed a new drop in jobs in the pharmaceutical industry in 2010. Laboratories have continued their restructuring plans since 2009.
In a study conducted by Arthur D. Little in 2007 for the LEEM, Francois Deneux and Frederic Thomas, both from the consultancy’s Healthcare Practice, had already explored the situation.
The new big players in the sky are Emirates, Ethiad und Qatar Airways. In recent years the Gulf-carriers developed to become the severest threat for the European aviation industry due to their competitive cost structures. Since the Gulf-state airlines are also closer to the world’s growth-centers in India and China, they will continue to take away further market share from the European carriers. This is the result of a recent study of Arthur D. Little in cooperation with Germany’s national economic newspaper Wirtschaftswoche. "Unless the European airlines do not alter and restructure their business models, they will never recapture the leadership again", comments Ralf Baron from Arthur D. Little.
In a large piece on China’s news nuclear plants, the reporter looks at whether this is a long-term opportunity or otherwise. Following a face-to-face briefing with Michael Kruse, Michael is quoted – discussing how the Chinese are ready to spend billions in investment and how the market is being driven by the construction of new reactors.