Service sector profitability thought leadership blog post copywriting, IFS. Offering aftermarket services can provide a valuable continuous revenue stream, especially for manufacturers of durable goods. This blog captures the thoughts and revenue opportunities as briefed by the Service Industry VP.
- COPY: Ian Castle, Freelance Copywriter
- CLIENT: IFS
Service sector thought leadership blog copy sample, IFS (US English)
[Excerpt]:
TREND 1: ECONOMIC HEADWINDS PUT SERVICE IN THE SPOTLIGHT
Battling global upheaval across the macroeconomic environment, Manufacturing is especially susceptible. The lingering aftermath of the pandemic, production disruption in China and the geopolitical conflict in Ukraine have severely impacted global supply chains.
Automotive production, for example, has fallen victim to a global shortage of vital semiconductor chips. According to the Society of Motor Manufacturers and Traders (SMMT), UK car production fell 10% in 2022, the biggest fall for 66 years.
Yet in sharp contrast to the cyclical nature of manufacturing, at the mercy of a booming or contracting economy, the service sector remains resilient and consistent, whatever the climate. When times are tough, companies have less appetite for major capital expenditure, looking to sweat their existing assets and maximize returns from their current fleet. For manufacturers, a move to diversify into service, maintenance and parts provision offers a potential profit powerhouse in challenging times: regular, high margin revenues during periods of diminished market demand and production.
Selling profitable upgrades or multi-level SLA contracts creates long-term business growth. Moreover, OEMs who fail to secure service contract renewals can expect to see their customer base erode as third-party providers steal a march. Service agreements also equate to operational and fiscal predictability for customers, essential in sectors such as construction, where project margins are increasingly tight.