McKinsey Study: What Concerns Execs?
The McKinsey Global Survey on the economy, conducted May 4 to May 8, finds that respondents in automotive and assembly are less concerned by supply chain reductions occurring during the next 12 months than the four other industries charted (pharma and medical products; chemical; retail; consumer and packaged goods).
That’s right: supply chain is not as big a threat to company growth in auto: 29% answered that it is, whereas for the other four segments the number is 40% in pharma and medical products; 38% chemical; 33% retail; and 33% consumer and packaged goods.
Pent-Up Demand. . .?
And although there seems to be a whole lot of discussion about pent-up demand for vehicles, the McKinsey survey finds that of the five threats, for auto and assembly the number-one concern is weakening customer demand, which, at 52% is higher than any other of the industry segments (retail comes in second at 48%).
To fill out the other three threats and how it is rated by the industry:
- Coronavirus outbreak (remember: this is going forward, not where we’re at right now): 41%
- Changing customer needs and/or expectations: 30%
- Policy and/or regulatory changes: 15%
Demand is a huge concern. And of the other four, supply chain is second from last on the concern meter.