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KPMG: Czech manufacturers are in a good position to recover from the crisis

Date: 05.03.2010

Company: KPMG Česká republika, s.r.o.

According to a KPMG survey, Czech manufacturers should be able to overcome the crisis, despite the fact that they have been hit harder than the rest of the CEE region.

Redefining Business Models: Colliding, Surviving or Thriving? is a research among 100 manufacturing companies in 10 countries within the CEE region during a six-month period in 2009. The main findings of the study regarding the Czech Republic are as follows:

Czech manufacturers, traditionally seen as strong exporters into Western Europe, have recorded the most significant decrease in revenue, employees and labor productivity of all CEE countries.
However, this is influenced by the fact that – apart from the economies still viewed as emerging – the more mature Czech manufacturing sector has already passed the initial ramp-up phase of its development.
Thanks to very high labor productivity the Czech companies boasted before the crisis, their position now enables them to overcome it. In order to do so, they should concentrate on labor productivity in more detail and seek new opportunities for cost reduction and revenue growth.
While in other regions Lean Manufacturing and Six Sigma are popular best practice methods, in CEE they are not so widely implemented. In the Czech Republic, ISO 9000, labour productivity and continuous improvement are the most appreciated. This is partly due to the complexity of Lean Manufacturing/Six Sigma implementation; however, if implemented successfully, these methods bring the greatest benefits.

To download the study, click here