Euromoney (February Issue)
Asia “is seen as the growth engine for private banks, but it is not without its trials.” As regulation increases, costs rise and competition heats up, industry “consolidation among private banks in the region is inevitable.”
Tags: Asia, Banks, Competition, Consolidation, Costs, Growth engine, Industry, Private banks, Regulation
Euromoney (February Issue)
In Mexico, “cheaper electricity will lower manufacturing costs across the board, and the country could become a competitor in energy-intensive industries such as aluminum and steel production.” President Enrique Peña Nieto introduced sweeping reforms to liberalize the electricity and oil and gas sectors, prompting analysts to add “an extra 1.5% to future GDP growth rates as a direct consequence of the scope of these reforms and many say the risks are on the upside. Suppliers, contractors and a whole host of other industries will benefit.”
Tags: Aluminum, Analysts, Competitor, Contractors, Costs, Electricity, Enrique Peña Nieto, Gas, GDP, Manufacturing, Mexico, Oil, Reforms, Risks, Steel, Suppliers, Upside
Industry Week (April 20)
Changing economics are starting to favor manufacturing in the U.S. A study by the Boston Consulting Group (BCG) found that over “a third of U.S.-based manufacturing executives at companies with sales greater than $1 billion are planning to bring back production to the United States from China or are considering it.” Larger companies with revenues of at least $10 billion are even more enthusiastic, with 48% considering reshoring. Considerations driving this new trend include labor costs, product quality, ease of doing business, and proximity to customers.
Tags: Boston Consulting Group, China, Costs, Manufacturing, Quality, Reshoring, U.S.
Business Green (April 18)
A new report from McKinsey “predicts solar power will be cost competitive with fossil fuels in hot countries within two to three years.” Capacity is likely to double within five years. The consulting firm’s report also predicts that costs will decrease 10% annually through 2020 when “costs could decline to $1 per watt peak (Wp) for a fully installed residential system.”
Tags: Capacity, Costs, Fossil fuels, McKinsey, Solar
CFO.com (March 13)
“While any good finance executive will focus first on the costs and revenue opportunities in proposed energy-saving plants, the risks and benefits to company employees and external society will be squarely on his or her radar, because they potentially affect the company’s brand reputation.” Chief Financial Officers (CFOs) will also have their eyes open for sweet spots, “where what’s good for the planet melds seamlessly with what’s good for the bottom line. For example, Costco found that changing its energy consumption helped cut its costs.” The problem is that most environmentally based metrics aren’t linked to financial metrics. For example, when a company reduces its carbon footprint, CFOs want to see the link with “an income statement, balance sheet, or cash-flow statement.” Does the smaller footprint reduce costs, increase sales or reduce liabilities such as lawsuits? “The challenge of sustainability at the corporate level is to find a way to answer that question in hard, numeric, provable ways that take into account the self-interest so basic to our free-enterprise system.”
Tags: Benefits, CFOs, Costs, Environment, Finance, Metrics, Risks, Sustainability
The Economist (November 12)
A recent survey of top leaders at 300 major global companies showed that 83% want “a legally binding multilateral deal…to update the ailing Kyoto protocol and help to put a price on carbon emissions.” However, less than 20% think that world leaders will accomplish this when they meet in Durban. Companies aren’t, however, waiting for the politicians. Since 2008, 88% have either increased or maintained corporate spending on sustainability, which is increasingly viewed as a core strategy to increase competitiveness by decreasing costs, combating resource scarcity and countering the impact of global warming.
Tags: Corporate strategy, Costs, Durban, Emissions, Scarcity, Sustainability
