Industry snapshot:
Want to learn more about the 18th Annual Global
CEO Survey findings?
Power & utilities
Explore the data at www.pwc.com/ceosurvey
Seeking growth amidst global disruption
New rivals from unrelated industries
Power & utilities (P&U) CEOs are cautious about
the financial outlook: only 29% think the economy
will improve this year. And they’re less confident of
increasing revenues in the short or mid term than
CEOs in other sectors.
More than half of all P&U CEOs expect greater
competition from other industries – mainly
technology and financial services – in the next
three years. Yet the biggest threats may actually lie
elsewhere: 30% of engineering & construction
CEOs, and 28% of forest, paper and packaging
CEOs, expressed interest in entering the energy,
utilities & mining industry. The latter are moving
into energy production as a way of utilising wood
residues.
Dealing with disruptive megatrends
68%
of P&U CEOs are
confident of generating
higher revenues in the
coming 12 months –
significantly less than
the overall average
of 84%
Cautious about prospects
62%
of P&U CEOs think
changes in the way
customers behave will
be a major disruptive
factor
What accounts for this wariness? P&U CEOs are
acutely conscious of how global megatrends are
disrupting the entire business landscape, with
profound implications for their industry. They’re
steeling themselves for shifts in the way customers
behave, competition from new entrants as well as
traditional rivals and changes in their core
production technologies. But it’s the prospect of
regulatory upheavals that worries them most: 89%
are nervous on this score, compared to just 66%
overall.
The fact that P&U CEOs are so actively
restructuring their operations is also revealing. The
percentages planning to in-source previously
outsourced processes or functions and to exit
major businesses or markets this year is noticeably
higher than it is the total sample – a clear sign that
they’re preparing for turbulence.
Of course, attack is often the best form of defence –
and 48% of P&U CEOs have already entered into a
new industry or considered doing so. They’re
mainly targeting the professional and business
services and technology sectors, as well as related
energy, utilities & mining sectors.
Questions to ponder
•
How are you preparing to cope with converging
and highly disruptive megatrends?
•
Who are your real rivals? Have you considered
which sectors represent the biggest risks?
18th Annual Global CEO Survey 2015
Industry snapshot:
Want to learn more about the 18th Annual Global
CEO Survey findings?
Power & utilities
Explore the data at www.pwc.com/ceosurvey
Competing with new tools and partners
Creating value with new technologies
Dynamic alliances with new partners
P&U CEOs – like CEOs in other industries – are also
exploring the opportunities to create additional
value by capitalising on new technologies. They’re
focusing on battery and power technologies,
cybersecurity and data analytics, in particular.
They’re somewhat less concerned with mobile
technologies for customer engagement, the area
that most interests the majority of CEOs in other
sectors. But 52% are anxious about the pace at
which technology is advancing – up from 32% last
year.
The percentage of P&U CEOs planning to form new
alliances has leapt from 39% to 52% this year.
Most hope to join forces with suppliers,
governments or customers, but 60% of all P&U
CEOs are even working with competitors, or would
be willing to do so. Their main motives for
collaborating are to get access to new technologies,
to share risks and to strengthen their innovation
capabilities.
Those P&U CEOs who have already invested in
new digital technologies report that the benefits
are considerable. They’ve achieved significant
operational improvements, make much better use
of the data they collect and have enhanced their
company’s ability to innovate. But they stress that
maximising the value of such investments isn’t
easy. It takes a clear vision of the competitive
advantages to be gained, a robust plan and a CEO
who personally champions the use of digital
technologies.
81%
of P&U CEOs think new
battery and power
technologies could
transform their industry
in the future
Conversely, the percentage of P&U CEOs planning
to hire more people has remained flat, at 36%.
Moreover, although 70% are concerned about the
availability of key skills, only 47% actively search
for talent in different countries, industries or
demographic segments.
Questions to ponder
•
Do you have a proper plan, with clear measures of
success, for investing in new technologies?
•
What are you doing to make your organisation an
attractive potential partner?
Get in touch with us!
Norbert Schwieters
Global power & utilities leader
+ 49 211 981 2153
norbert.schwieters@de.pwc.com
© 2015 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.
This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
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