aPriori CEO State of the PCM Market Address

Rick Burke


Stephanie Feraday, President & CEO of aPriori

NA STARS Kickoff Presentation, Feb 7

The world is more connected than ever making it very challenging to assess how events impact our businesses. A great example is the recent slowdown in the Chinese economy. It impacted many companies and economies around the globe – both positively and negatively.

Oil and other commodity fluctuations have had a similar impact. At our STARS conference two years ago, when oil was hovering around $100 per barrel, who could have guessed that today it would be around $30 a barrel?

While those trends are clear, off-shoring/on-shoring continues to be a conundrum. Recently AT Kearney research highlighted that for the fourth consecutive year, re-shoring had once again failed to keep up with off-shoring. Contrary to that study, Boston Consulting Group’s survey indicated that the share of companies actively re-shoring increased by about 250% since 2012. Talk about a confusing message.

On a related note there is no question that the trends in LCC labor rates continue to change dramatically. Labor rates in China alone have more than doubled over the past 8 years.

And then to add more complexity – regulatory requirements in many countries continue to change.

To be competitive today, we are seeing companies laser focused on 3 areas:

  1. Accelerating Time to Market – the drive to bid AND win more business and the drive for greater competitive advantage is forcing companies to reduce product lifecycles. Some of the automotive companies we are working with are attempting to shorten product lifecycles by almost 30% to bring more new features and design elements to market faster.
  2. Continue to Increase Product Value – it’s no longer just about quality, but how to deliver the maximum feature set at an established target cost that is acceptable by the market.
  3. Greater Margin Control – with this economic turmoil and continuous global change, companies want to be sure they have that rainy day fund or have cash to fund new product initiatives.

With these 3 goals front and center at many companies we visit, having cost data at your fingertips has become a necessity across the product lifecycle. Whether it is a fast quote for a customer or a quick should cost during the design stage, we know you need cost data faster than ever before to help achieve your goals.

To hear the complete presentation…

Want to Join our European STARS Conference?

Our next big STARS conference will take place from June 27 to 30 at the magnificent ICS Messe in Stuttgart, Germany.  Learn more and register here.


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