‘Titanium Economy’ Auto Suppliers May Want To Take A Page From Tesla



the authors of a new book on successful “industrial technology” manufacturers have found three things that were markers or actions that titanium-economy companies took. They said that they sought to create a “segment of one” and not as a technology company, not an auto company. By “industrial technology,” the authors mean manufacturing, robotics and hardware production that are “highly specialized and focused” in about 90 of what the current and former McKinsey consultants call “microverticals”. Tesla is an example


成功した「産業技術」メーカーに関する新しい本の著者は、チタン経済企業が取ったマーカーまたは行動である3つのことを発見しました。彼らは、自動車会社ではなく、テクノロジー企業としてではなく、「1つのセグメント」を作成しようとしたと言いました。「Industrial Technology」とは、著者は、現在および元マッキンゼーのコンサルタントが「マイクロティカル」と呼ぶものの約90で「高度に専門的で集中」する製造、ロボット工学、ハードウェアの生産を意味します。テスラは一例です


The new book on successful “industrial technology” manufacturers.


They may be mostly Tier 2 or Tier 3 or even Tier 4 suppliers to automakers or to Tier 1 suppliers, but many U.S. automotive suppliers also are bits of the “titanium economy” that is responsible not only for outsized prosperity in the present but also for the hope they can shatter the myth that U.S. manufacturing is collapsing.


And they can draw their inspiration for gaining market share and more long-term traction from none other than one of the creators of the renaissance in American manufacturing, Elon Musk.


That’s the view, anyway, of the authors of the new book, The Titanium Economy: How Industrial Technology Can Create a Better, Faster, Stronger America. By “industrial technology,” the authors mean manufacturing, robotics and hardware production that are “highly specialized and focused” in about 90 of what the current and former McKinsey consultants call “microverticals.” “We found three things that were markers or actions that titanium-economy companies took,” co-author Gaurav Batra, former co-leader of McKinsey’s industrial practice in North America, told me. “One was how they operate — how effective their operations are, how they are leveraging technology and day-to-day efficiency, not just doing things in a good way cost-wise but trying to serve customers better. Tesla is a good example of that.

とにかく、それが新しい本「The Titanium Economy:The Titanium Economy:Industrial Technologyがより良い、より速く、より強力なアメリカを生み出す方法」の見解です。「産業技術」とは、著者は、現在および元マッキンゼーのコンサルタントが「マイクロティカルズ」と呼ぶものの約90で「高度に専門的で集中」する製造、ロボット工学、ハードウェアの生産を意味します。「私たちは、チタン経済企業がとったマーカーまたは行動である3つのことを見つけました」と、北米のマッキンゼーの産業実践の元共著者であるガウラフ・バトラは私に語った。「1つは、彼らがどのように運営されているか、彼らの運用がどれほど効果的であるか、彼らがどのようにテクノロジーと日々の効率を活用しているか、コスト的に良い方法で物事を行うだけでなく、顧客にもっと良いサービスを提供しようとしています。テスラはその良い例です。

“Second was how they explain and develop their business model for the investor base, what we call a coefficient of investment. That means who’s backing you today? Are they short-term or long-term folks, and do they believe in your message? That comes back to telling your message very clearly. Tesla talks about itself not as a technology company, not an auto company, and the investor base values them as a tech company.” And the third marker of a titanium-economy company, Batra said, is that they’re seeking to create a “segment of one.” Tesla, he said, “has owned its full experience from hardware to software and batteries, and they’ve got full control of the value chain.” Co-author Asutosh Padhi, who is a managing partner for McKinsey North America, told me the term “titanium economy” describes such companies because “they are durable; they’ve been around a long time.” Notwithstanding Tesla, “The reason you don’t see them is these aren’t the companies that get profiled on popular TV channels, but they’re real and important and under-appreciated. They aren’t the companies that run Super Bowl ads, but in many cases they are the real backbone of the U.S. economy. So how can we recommit to them and change the narrative and focus on them?” Specifically, the book examines, amplifies and praises about 700 publicly traded U.S. companies that compete in the emerging “titanium economy” as well as about 3,500 more companies in the private sector. About 80% of them are small to mid-cap, with sales ranging from $1 billion to $10 billion, each employing about 2,000 to about 20,000 people. The top 380 private industrial companies among them posted a compound annual revenue growth rate of 4.2% from 2013 to 2018, outpacing revenue growth of S&P 500 companies, which came in at an average of 2.9%, the authors found.

「2番目は、投資家ベースのビジネスモデルをどのように説明し、開発するかということでした。これは、投資係数と呼ばれるものです。つまり、今日は誰があなたを支援しているのですか?彼らは短期的または長期的な人々ですか、そして彼らはあなたのメッセージを信じていますか?それはあなたのメッセージを非常に明確に伝えることに戻ってきます。テスラは、自動車会社ではなく、テクノロジー企業としてではなく、投資家の基地がハイテク企業として大切にしていると語っています。」また、チタン経済会社の3番目のマーカーは、「1つのセグメント」を作成しようとしているということです。テスラは、「ハードウェアからソフトウェアやバッテリーに至るまでの完全なエクスペリエンスを所有しており、バリューチェーンを完全に制御しています。」 McKinsey North Americaのマネージングパートナーである共著者Asutosh Padhiは、「チタン経済」という用語は、「耐久性があるため、そのような企業について説明しています。彼らは長い間行ってきました。」テスラにもかかわらず、「あなたがそれらを見ない理由は、これらが人気のあるテレビチャンネルでプロファイルされる企業ではないということですが、それらは現実的で重要であり、過小評価されています。彼らはスーパーボウルの広告を運営している企業ではありませんが、多くの場合、彼らは米国経済の本当のバックボーンです。それでは、どうすれば彼らに推薦し、物語を変えて彼らに焦点を合わせることができますか?」具体的には、この本は、新たな「チタン経済」で競う700の公開された米国企業と、民間部門の約3,500の企業を調べ、増幅し、称賛しています。それらの約80%は小規模から中間のキャップであり、売上は10億ドルから100億ドルの範囲で、それぞれが約2,000人から約20,000人を雇用しています。その中の上位380の民間企業は、2013年から2018年にかけて4.2%の複合年間収益成長率を記録し、S&P 500企業の収益成長率を上回り、平均2.9%で到着しました。

“What differentiates this core of companies,” Padhi explained, “is that innovation is the core of what they do. They have a playbook around developing deep expertise, serving customers extraordinarily well, both B2B and B2C. They serve customers in an economical manner with high levels of service and quality, and reliability better than anyone else.” Many auto suppliers pepper the ranks of the titanium economy, and it’s a particularly competitive space in American industry. Batra said they can still distinguish themselves using industrial technology such as by finding ways to create recurring revenues for themselves beyond simply supplying commodity widgets to automakers or top suppliers.


“ If you’re involved in manufacturing something for steering systems, for instance, it may be a matter of sitting down with the automotive customer and figuring out which parts of the process are related to quality and compatibility and final performance,” Batra said. “Maybe there are things you could do around product features that you could monetize or add it as a service.


“The amount of electronic components in cars are increasing day by day, of course, and with that comes the opportunity to leverage all electronic pieces to come up with a better product, in the form of better features for end customers and for auto manufacturers.” I have broad interests and experience as a journalist, covering the auto… Read More I have broad interests and experience as a journalist, covering the auto