Overview of the drilling rig manufacturing space
Over the past few years, the drilling rig market has started moving from a manufacturing-based business model to a more service-oriented business model. As a result, prominent players in the drilling rig market are redefining their business models to improve their production capabilities. However, drilling rig companies have started experiencing setbacks in terms of losses faced and low return on investments. Consequently, firms operating in this industry space have begun adopting new technologies to identify potential value opportunities. The growth prospects of the drilling rig manufacturing industry are spurred by the increasing mining and oil and gas extraction activities around the globe.
Although the drilling rig manufacturing industry is expected to display substantial growth in the coming years, a few factors are expected to influence the growth prospects of the industry. Some of the elements include:
- Shortage of raw materials: With the exponential growth in mining and oil and gas activities over the last few years, there are supply shortages for the products among the end-users of this industry. As a result, firms are forced to maintain supply consistency in their products offered.
- Innovations: Several drilling rig companies are in the early stage of growth and are heavily relying on obsolete techniques to meet the end-user requirements. Nevertheless, companies have started using innovations in their production capabilities due to the advances in technology. As a result, it becomes essential for players in this industry to efficiently meet the business requirements.
Such factors are compelling firms in the drilling rig manufacturing space to leverage the use of supply chain analysis solutions. Supply chain analysis solutions help companies to capture the competitive advantage and increase overall profit. These solutions also help firms to map out specific activities within the generic value chain activities and look for ways to create efficiencies.
The Business Challenge and Journey
Client background: A UK-based manufacturer of the drilling rig equipment. The company recognized that there was no defined fallback position from which support could be maintained at appropriate levels at all time.
Client issue: The company was not able to provide an appropriate level of support to offshore facilities which could potentially jeopardize their objective to safely, efficiently and effectively deliver drilling rig products and services to customers.
The supply chain analysis experts at SpendEdge conducted a comprehensive research and carried out discussions with prominent stakeholders in the oil and gas industry space to help the drilling rig manufacturer overcome their predicaments.
Client journey: The client recognized the value in engaging with our experts to carry out the business continuity planning and support the identification of appropriate strategies with their IT provider and support their offshore facilities.
Key questions answered in this supply chain analysis engagement
SpendEdge’s supply chain analysis engagement helped the drilling rig manufacturer to plan and put strategies in place that would help meet future needs of the organization.
To know more about our supply chain analysis