Asset-Intensive Sectors Have Positive Spending Plans For 2020

Published 29 October 2019 by David Metcalfe &

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Executive Summary

This report provides an industry-level breakdown of spending plans for 2020 operational excellence programmes based on interviews with 284 managers in operations, reliability and maintenance roles. A majority of firms in the survey (52%) expect to increase nominal spend on operational excellence by 5% or more in 2020 compared to 2019. Just 1% of the respondents anticipate a budget cut in 2020. The outlook for operational excellence spending is therefore a positive one. At the industry level, expectations of double-digit increases range from 9% to 24% of respondents which should shape the strategies of technology vendors. Only three industries have a quarter or more of firms anticipating no increase or a reduction. Tech providers and service providers with a focus on chemicals and general manufacturing should do more due diligence on their prospects in 2020 as these sectors have the least promising spending plans. Only a minority of firms in these sectors will buy into big new propositions such as digital twin simulations and enterprise-scale APM software.

Table of contents

Healthy Increases Expected For 2020 Operational Excellence Budgets
Tech Vendors And Services Firms Should Capitalize On A Positive 2020 Budget Outlook

Table of figures

Figure 1. Budget Expectations For 2020 Operational Excellence Programmes

About the author

David Metcalfe


David is the CEO of Verdantix and co-founded the firm in 2008. Based on his 20 years of experience in technology strategy and research roles he provides guidance on digital strategies to C-level executives at technology providers, partners at private equity firms and function heads at large corporations. His current focus is on helping clients understand their market opportunity tied to ESG investment trends and their impact on corporate sustainability strategies. During his 12 years running Verdantix – including 4 leading the New York office – he has helped dozens of clients grow their businesses through fund raising, acquisitions and international growth. David was previously SVP Research at Forrester and Head of Analysis & Forecasting at BT. He holds a PhD from Cambridge University and also worked as a Research Associate at the Harvard Business School.

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