Competition from China and South Korea put pressure on suppliers
The competitive pressure in the sector of large-scale plant construction has intensified considerably in the last three years. This is the estimate of the business consultants Management Engineers (ME) and the VDMA Large Industrial Plant Manufacturer‘s Group based on a survey among 180 top managers of German and European companies involved in large-scale plant construction: 93% of the managers surveyed stated that there has been growing pressure from the competition since 2008.
China is most aggressive
According to the survey, the Chinese large-scale plant manufacturers are the most conspicuous competitors in the world market at present. Their pricing policy is not only most aggressive but they are also willing to take risks with regard to the project planning and execution phases. Even more than suppliers from other countries, Chinese companies are currently trying to set new standards when it comes to project speed and efficiency. Therefore, this result of the survey is above all remarkable in view of the fact that the capability to execute projects was regarded as...
