
In this episode, Akshi Goel, EY Global Advanced Manufacturing & Mobility Analyst, shares her insights on the top themes discussed by mobility leaders during the 4Q20 public earnings calls. The mobility industry continues to witness recovery in consumer demand as the pandemic acted as a catalyst for shifts in consumption patterns toward e-commerce and sustainability. However, demand recovery across sectors could further intensify raw material shortages. And, while the mobility sector did manage challenges posed by the pandemic through agility in decision-making, resiliency in operations, accelerated digitization and leaner cost structure, companies still need to prepare for rising uncertainty associated with geopolitical risks. Key takeaways: Developments in end markets: automotive peers are witnessing a strong recovery in consumer demand; however, the impact of disruption continues to reflect on performance. Logistics peers are witnessing sustained growth arising from e-commerce activity. Competitive positioning: achieving the optimum product price and customer mix remains a top priority with mobility peers. Original equipment manufacturers (OEMs) have set up a strong product pipeline with a focus on sustainability and connected vehicles. Business reorganization: several peers are reporting performance improvements due to lean cost structure and rationalization of product portfolios toward high margin segments.
Apr 1, 2021
11 min

In this episode, EY global analysts Julie Rosenthal and Mohit Ahuja share their insights on shifts in the advanced manufacturing landscape. During the 4Q20 quarterly public earnings calls, leaders of advanced manufacturing (AM) companies discussed some of the poignant changes occurring in the industry. One very prominent theme that stood out in these discussions was digital transformation in manufacturing and how COVID-19 had accelerated its adoption in the industry. The arrival of the digital era shaped decisions made by aerospace and defense (A&D), industrial products (IP) and chemical companies during 4Q20. Key takeaways: Changes in financial outlook: capex-driven sectors are witnessing positive demands, whereas commercial aerospace remains subdued. Meanwhile, defense and space are observing robust demand. Business reorganization or restructuring: companies continued to consolidate manufacturing facilities and office footprints, and lower headcount. Many firms witnessed cost improvements through structural changes and material cost savings through supply chain programs. Product design and innovation: manufacturers are undertaking digitization of existing products and launching connected offerings. Many are connecting their large installed base to internet of things (IoT) platforms, and supporting the launch of 5G and modern networking technologies for space equipment.
Apr 1, 2021
14 min

In this episode, Randall Miller, EY Global Advanced Manufacturing & Mobility Leader, and participants from the Women’s Network share insights on the program and challenges women face during their careers. International Women’s Day (IWD) is an important global celebration of women’s achievements and is an opportunity to highlight what needs to be done to close the gender gap. At EY, we believe that gender equality is the key to unlocking business growth and helping societies to thrive. To underpin EY ambition to inspire and accelerate gender equality and social equity in the working world, the EY Advanced Manufacturing & Mobility (AM&M) Industry Market has established the AM&M Women’s Network. The main goal of this network is to support top female talent on their path to achieving their career goals, as well as learning about and removing any barriers that prevent them from having equal opportunities in the firm. Key takeaways: Increasing the number of women in leadership roles is a top priority for the EY AM&M Industry Market. To contribute to the collective effort toward impactful change on gender equality, organizations should promote women’s achievements, challenge gender stereotypes and biases, introduce policies that support women’s careers and advocate for equal pay. Now is the time to go further and faster in accelerating gender equality and making sure #SheBelongs.
Mar 8, 2021
17 min

In this episode, Steve Patton, EY Americas Mobility Sector Leader, and guests from Clemson University International Center for Automotive Research share their insights on Deep Orange, a vehicle prototype program. Ernst & Young LLP has collaborated with Clemson University and its Deep Orange program to advance autonomous vehicle (AV) technology. Deep Orange, currently in its 12th year, is an educational framework within the Department of Automotive Engineering at Clemson University. Every year, as part of the program, students are given new challenges. This year, the challenge is to build an autonomous racecar that could race at 200 miles an hour at the Indianapolis Motor Speedway. The challenge has been designed to lead the students through a process that an automotive original equipment manufacturer (OEM) or supplier might go through while they're developing a vehicle. It is a unique way to educate students in the systems integration of vehicles. Key takeaways: Ernst & Young LLP has collaborated with Clemson University and its Deep Orange 12 program to advance autonomous vehicle (AV) technology to be used by 30 global teams from 39 universities in the Indy Autonomous Challenge. Through the program, Clemson graduate students are designing the competition base vehicle and have tackled industry challenges such as integrating sensors with computer hardware, analyzing constraints in perception sensors, and addressing safety concerns. Deep Orange helps students develop a systems perspective, giving them the opportunity to work with technologies and overcome challenges that have real-world implications – and as a result, accelerating the future of mobility.
Feb 12, 2021
22 min

In this episode, Akshi Goel, EY Global Advanced Manufacturing & Mobility Analyst, shares her insights about the key themes discussed by mobility sector leaders during the third quarter earnings calls. In the second quarter, mobility companies were grappling with the impact of the COVID-19 pandemic on supply chains, trying to ascertain its longer-term ramifications. Now in the third quarter public earnings calls, mobility companies have come to the realization that to stay relevant into the future, they must be equally bold about the depth and pace of their transformation. Key takeaways: Business reorganization: companies are restructuring core processes to suit digitalization initiatives, and leveraging digital to drive cost reductions and increase efficiency for long-term success. Competitive positioning: mobility peers are planning to enhance their competitive advantage in a recovering market as they strengthen their product mix going forward. Change in financial outlooks: despite a gradual recovery in major markets across the globe with more relaxed regulations and economic activity restarting, automotive peers are expecting low sales in 2020.
Jan 4, 2021
10 min

In this episode, Julia Rosenthal, EY Global Analyst for Advanced Manufacturing, shares her insights about the key themes discussed by leaders during the third quarter public earnings calls. The COVID-19 crisis and related concerns still remain a major challenge for advanced manufacturing (AM), especially automotive, aerospace, and oil and gas companies. Among the top themes discussed by leaders of AM sector companies during the third quarter public earnings calls are: developments in end markets, business reorganization or restructuring, and competitive positioning. Key takeaways: Business reorganization or restructuring: cost reduction drove streamlining activities at many companies. Divestitures allowed companies to better focus resources on key growth markets while acquisitions were held to make cost savings targets stringent. Competitive positioning: product and service quality are gaining importance as manufacturers hold onto market share. Outcome-based pricing models are being offered more frequently. Acquisitions and joint ventures are enabling companies to bring differentiated products and services to market more quickly. Customer acquisition and connectivity: manufacturers are prepared to invest in understanding their customers better. Sales teams are being expanded in growth markets, enabled by new technologies.
Dec 22, 2020
12 min

In this episode, our speakers share insights into the shift the automotive dealership and original equipment manufacturers have had to make to engage a new digital native customer. The COVID-19 pandemic became an opportunity to fast track the digitization of the automotive sector. Manufacturers and dealers have had to shift their way of operating to encompass the new digital native consumer and a “digical” – digital and physical – way by which automotive cars are purchased by consumers. Key takeaways: Dealership model changes: a shift to online customer purchase behavior accelerated due to COVID-19; customers can interact and receive an online experience for purchase of both new and used cars. Collaboration for OEM (original equipment manufacturers) and dealers; a fast evolution of the end-to-end transaction has shifted online, including payments, and deliver. Future forecasting: what kind of purchase models are consumers likely to encounter in the new digitized dealership world and how will they receive the best service?
Dec 14, 2020
11 min

In this episode, Akshi Goel, EY Global Advanced Manufacturing & Mobility Analyst, shares her insights about the key themes discussed by mobility sector leaders during the second quarter earnings calls. The COVID-19 pandemic quickly became a global threat in the first quarter of 2020 and mobility companies found themselves facing complex decisions, as several production sites worldwide closed down and supply chains were disrupted. There were no surprises in the second quarter as well. Mobility companies are in a dire situation as the crisis has intensified supply chain issues in an already complex ecosystem. Key takeaways: Operating costs: targets for cost management programs were increased by many companies. The crisis has led to widespread cost-restructuring programs and austerity measures, including layoffs and furloughs. Financial initiatives: mobility companies are working on their capital management strategies to secure financial stability. Also, discretionary spending and capital expenditures are delayed or suspended, and companies are actively using credit and debt financing strategies to achieve a strong liquidity position. Product and service innovation: original equipment manufacturers (OEMs) are struggling to support their internal combustion engine legacy businesses, and simultaneously investing in the transition to electric vehicles.
Nov 6, 2020
11 min

In this episode, Julia Rosenthal, EY Global Analyst for Advanced Manufacturing, shares her insights about the key themes discussed by leaders during the second quarter public earnings calls. As COVID-19 became a global threat in the first quarter of 2020, manufacturers had to make some very complex decisions. For advanced manufacturing companies, the second quarter proved to be just as difficult as the first one. This was the quarter in which some of the most widespread lockdown activities were taking place around the world. Companies reduced costs and shifted their focus to long-term growth, as COVID-19 caused many of their customers to shut down operations. Key takeaways: On financial initiatives — some manufacturers said that they would remain committed to their R&D investments while others pulled back as part of cost-reduction strategies. Share buyback and dividend activities have picked up. Operating costs — many companies raised the targets in their cost management programs. Leaders talked about restructuring programs, more offshoring of operations and new automation efforts. Culture and talent — overall, there has been a greater focus on enterprise-level cost savings from reduced headcount.
Oct 30, 2020
12 min

Over the years, companies have committed to cost-effective, just-in-time supply chains. This lean and linear approach has been a successful strategy for limiting inventory and minimizing working capital. But as the erratic demand and unprecedented disruption from the COVID-19 pandemic take their toll, the lack of resiliency of modern supply chains is coming into greater focus. Granted, the current pandemic is one of the more extreme examples of disruption in recent history, it certainly isn’t the first and is unlikely to be the last. How can manufacturers reinvent supply chains that can flex under pressure without a total loss of cost-effectiveness? Further, how can they gain greater visibility to better anticipate and plan for the next disruptive event? Key takeaways: Most traditional and modern supply chains do not have the capability to be very resilient or flex with a major disruption due to their linear nature. To build supply chain resiliency, manufactures should think through all the scenarios that can happen, review business continuity plans, look at just-in-time models, perform stress tests, and conduct an annual risk mitigation plan and review. Digital process mining and digital twins are powerful technology tools that can visualize the effects of disruptive events such as the COVID-19 pandemic, and therefore help companies come up with contingency plans and achieve business continuity.
Sep 25, 2020
11 min
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