FOOD & BEVERAGE
GLOBAL FOOD & BEVERAGE MANUFACTURERS LOOK TO SMART FINANCE TO MEET PANDEMIC INVESTMENT CHALLENGE
• The urgent challenges of the Covid-19 pandemic have required Food & Beverage manufacturers to rapidly adapt to changed circumstances and patterns of consumption, and will continue to impact processes as businesses and consumers embrace ‘the new normal’.
• Companies that invest in agile technologies including automation, digitalisation and retrofit projects are best placed to react to shifting market demands with optimum flexibility and resilience. The size of the investment required is, however, considerable.
• New research from Siemens Financial Services (SFS) estimates that the global investment challenge for Food & Beverage industry for digital transformation alone is over $566 billion over the next five years.
• Smart manufacturers are deploying new financing models, mainly from manufacturing-specialist financiers, to provide commercially sustainable ways of maintaining the momentum of technology and equipment investment.
S
iemens Financial Services (SFS) has released a new whitepaper entitled Rising to the New Challenge: The role of Smart Financing in helping the Global Food & Beverage Sector navigate the economic ‘new normal’. This is the second in a series of insight papers on the automation, retrofit and digital transformation investment challenges faced by manufacturers.
The pandemic crisis and its economic aftermath make the importance of investing in agile technologies even more critical. Historic evidence shows that companies that continued to invest in previous crises emerged ahead of their competitors. Such investments typically enable manufacturers to achieve levels of operating flexibility that can cope with uncertain and volatile markets – a flexibility that is becoming an increasingly important competitive advantage as patterns of supply and demand, as well as working
and labour practices, are likely to fundamentally change as the crisis recedes and businesses and consumers embrace ‘the new normal’. The size of the investment challenge is, however, considerable. SFS has developed a model which conservatively estimates the size of the investment challenge faced by the Global Food and Beverage manufacturing industry as it seeks to implement smart factory technology during the five-year period 2020-2024.
THE INVESTMENT
CHALLENGE FOR DIGITAL TRANSFORMATION IN THE FOOD & BEVERAGE INDUSTRY 2020-2024
Country Investment Challenge - billions of USD Brazil China
8.8 343.1 22 SEPTEMBER 2020 | FACTORY&HANDLINGSOLUTIONS France
Germany India Italy
Japan Poland Russia
Scandinavia Spain
Turkey
United Kingdom United States
Rest of the world Global Total
7.7 9.2 8.0 8.3
20.1 3.8 5.3 4.8 9.7 4.8 4.4
36.8 91.9
566.7
Expert commentators are advising companies to diversify their financing sources, nurture existing lines of relationship credit, and harness alternative
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