Even the historically buoyant and growing high tech industry suffered during the current economic decline – high tech firms generating nearly half of industry revenue now face at least some risk of financial distress. As a result, many high tech firms have turned their attention to reducing costs and re-evaluating their prospects for growth. This change in focus is driven by a number of factors:
- Ever-shorter technology life cycles
- Increasingly segmented markets that limit volume opportunities
- Declining rates of value-adding innovation
- Greater competition from companies with operations in low-cost regions
- Rising material costs and, in some cases, raw material scarcity
- Stagnant productivity of SG&A spend
AlixPartners—For when it really matters
AlixPartners is the right firm to help you drive immediate and tangible results to your bottom line. We have proven experience across the entire high tech industry value chain and major functional service lines. We’ve worked with a broad array of technology manufacturers and service providers on a host of business performance issues, including:
- Revitalizing top-line growth
- Profitability-based portfolio and complexity reduction
- Supply chain management
- Technical cost reduction
- Strategic sourcing of raw materials and services
- Manufacturing and distribution footprint rationalization
- Turnaround and financial management