CVA BIC Spotlight 2024-06 Merchant Profitable Growth
The sectors of Construction, Materials and Systems are under profound changes, driven by an evolving basis of competition (de-commoditization, internationalization…), resource and margin squeeze (energy, input costs…) and differentiated end-market growths (volatility, uncertainty, complexity…). In B2B Distribution, EVA margins have been a lot higher in North America than in Europe, with consolidation having accelerated – trend to continue.
Please find attached our latest thought piece on Securing sustainable and profitable growth for B2B distributors in Building Materials & Systems - a perspective combining the expertise of three of our platforms: BIC (Building, Infrastructure & Construction), NSM (New Service Models) and ECT (Energy & Circular Transition).
This paper offers a view on how to
get prepared for the structural changes in the sector (digitalization, servitization & circular transition)
compare the merchanting economic performance dynamics across regional markets (North America vs Europe) and businesses (BIC generalist/specialist vs multi-industry distributors)
provide growth and profitability levers for both core businesses (with M&A as a table-sake, but to complete at a ‘fair’ price), and adjacencies (such as digital services and circular solutions).
If these lines have managed to catch your attention, do not hesitate to contact our team, in order to arrange a meeting, to present our experience and discuss your specific challenges.
The CVA BIC platform has assisted blue chips on the following topics at corporate and country levels:
manage actively the portfolio via M&A to gain synergies & scale (local, national…),
realize full client/market value potentials (incl. pricing) through deeper category understanding,
reach the next level of digital customer experience and seamless operations (end-to-end),
configure value-add service offerings (incl. circular such as end-of-life product management),
recreate compelling corporate story (vision / “polar star”) for all stakeholders incl. talents,
while making sure all those engaged initiatives are deployed in a coherent and efficient way.
