UPS Sees Service Opportunities for Manufacturers
UPS Inc. said 78% of small or midsize manufacturers believe customers’ service expectations are rising, but just 12% view their after-sales service as a key advantage.
The package company that ranks No. 1 on the Transport Topics Top 100 list of for-hire carriers in the United States and Canada based those findings on research by International Data Corp. Manufacturing Insights.
UPS, which backed the study, said earlier this month that while manufacturers focus on developing and deploying new machinery, the buyers of industrial machines are increasingly seeking after-sales support to maintain the complex machinery for optimal productivity.
“Industrial machinery manufacturers are in a challenging situation,” said Brian Littlefield, UPS director of industrial manufacturing and distribution. "Their pipeline depends on developing new products, yet over one-third say that 50% to 75% of their profitability comes from after-sales service. For many, enhancing service after the sale could be a way to differentiate from the competition and offer potential for revenue growth.”
A majority (56%) of surveyed companies do after-sales service in house, but 44% either outsource that function or plan to do so.
The results are based on a March 2015 survey of industrial machinery providers headquartered in the United States with a global customer base and between $10 million and $50 million in annual revenue.
More than half of surveyed companies’ business were in North America, with the rest spread around Europe and other continents.
Atlanta-based UPS’ survey was the latest in a series of market analyses released by the company, which also has assessed health care and consumer buying habits.
