Major slowdown in Capex
Design consulting companies in the Chemicals, Pharma, and industrial sectors in India are struggling due to several interconnected challenges:
Stalling Global Demand: Weak demand in key export markets and global economic slowdowns have reduced project flows and investments, directly impacting consulting assignments linked to new capacity and expansions.
Increased Competition: Aggressive pricing and overcapacity from Chinese suppliers have eroded market share and pressured margins, making it harder for Indian firms to secure consulting projects at viable rates.
Rising Input and Compliance Costs: Higher costs for raw materials and stricter environmental and regulatory requirements have squeezed client budgets, leading to fewer new projects and a focus on cost-cutting over innovation or expansion.
Regulatory Complexity: The need to navigate evolving, stringent global and domestic compliance (such as cGMP, FDA, EMA) increases project complexity and risk, making consulting projects longer and more resource-intensive.
Skill and Infrastructure Gaps:
Shortages of highly skilled professionals and underinvestment in R&D and infrastructure limit the ability of consulting firms to offer advanced, value-added services, especially as clients demand more digital and sustainable solutions.
These factors collectively reduce demand for design consulting services and put pressure on consulting companies to adapt, innovate, and differentiate in a challenging market environment.
Design consulting struggles in India due to global slowdown | Saravjit Singh Kahlon posted on the topic | LinkedIn
[Body Paragraph 1: Analysis of the market/tech situation]
The global economic slowdown has significantly impacted the demand for new capacity and expansions in key export markets such as Chemicals and Pharmaceuticals. This has directly affected the availability of consulting assignments linked to these sectors. Additionally, the rise in competition from Chinese suppliers has led to increased pricing and overcapacity, which has eroded market share and pressured margins. Furthermore, rising input and compliance costs have squeezed client budgets, leading to fewer new projects and a focus on cost-cutting over innovation or expansion. Finally, the need to navigate evolving, stringent global and domestic compliance requirements has increased project complexity and risk, making consulting projects longer and more resource-intensive.
[Body Paragraph 2: The specific operational implication]
These factors collectively reduce demand for design consulting services in India, putting pressure on consulting firms to adapt, innovate, and differentiate in a challenging market environment. As a result, it is essential for firms to optimize their operations and strategies to remain competitive and sustainable in this rapidly changing landscape.
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Title: Design consulting struggles in India due to global slowdown | Saravjit Singh Kahlon posted on the topic | LinkedIn
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