The energy market is never static, but the pace of change in recent years has been exceptional. Factors such as erratic demand, increased competition, regulatory changes and volatile prices have presented significant challenges — and exciting opportunities — to market participants. Within the energy industry, Enite clients include International Oil Companies (IOCs), National Oil Companies (NOCs), Refiners, Independent Merchants and Trading Organizations.
SOME CURRENT INDUSTRY TRENDS AND ISSUES OUR ENERGY CLIENTS ARE FACING:
GLOBALIZATION
Energy companies have begun transitioning from regional to global organizational structures. In doing so, they must integrate or develop policies, processes and system capabilities across their international business units.
CHALLENGES AND OPPORTUNITIES
- Evaluation of new global market opportunities (e.g., Liquefied Natural Gas (LNG))
- Global risk policy development across all energy commodities traded
- Global reorganization of a commodities trading groups
CARBON REGULATIONS
New legislation focusing on carbon emissions have encouraged energy companies to better understand the impacts of such legislation and planning their operational response.
CHALLENGES AND OPPORTUNITIES
- Evaluation of, or development of, systems for managing a cap-and-trade strategy
- Development of emissions strategies
NEW BUSINESS DEVELOPMENT
Energy companies are regularly responding to a dynamic marketplace and examining new growth opportunities to remain competitive (e.g., creation of new strategies, policies, processes, and organizational design)
CHALLENGES AND OPPORTUNITIES
- Evaluation of organizational capabilities needed for entering a new market or establishing a new business line
- Selection of trading and risk management systems to meet new market or business line requirements
Within the utilities sector, Enite serves Water Utilities, Power Generation, Gas & Power Transmission and Gas & Power Retail participants. Clients operating in this sector include Investor-Owned Utilities, Public Utilities, Energy Merchants, and Retail Providers.
SOME CURRENT INDUSTRY TRENDS AND ISSUES OUR UTILITIES CLIENTS ARE FACING:
RATE CASE RECOVERY OPTIMIZATION
Few activities are more critical to the financial and operational success of investor-owned, public or other regulated utilities than a positive outcome from a Rate Case hearing by the governing PUC or other regulatory body. Yet, it is not uncommon for up to 10-30% of requested revenues in the form of rate adjustments to be delayed, questioned or denied in such hearings. Enite has conducted extensive studies to determine the cause of these problems and have developed and implemented processes to resolve them, resulting in more favorable outcomes and higher levels of trust and credibility with the PUC.
CHALLENGES AND OPPORTUNITIES
- Customer-sponsored rate campaign can yield very large savings; savings which continue for the life of the portfolio
RELIABILITY-CENTERED MAINTENANCE (RCM)
Asset Management is one of the key responsibilities of all utilities. An approach to Maintenance Excellence that delivers extremely high levels of uptime and reliability as well as high quality system performance at a reasonable cost will allow utilities to generate required ROE while avoiding unnecessary downtime and extending the useful life of assets. Enite’s method of implementing RCM utilizes demonstrated best practices and a data-driven approach to maintenance management that has been tested and proven in diverse environments such as pipelines, gas plants, refineries, chemical plants, pumping stations and many others.
CHALLENGES AND OPPORTUNITIES
- Driven to eliminate the sources of loss rather than focusing on how to repair equipment, focus limited economic resources in greatest return for managing asset
- Rigorous programs deliver data management programs that utilize operational data to predict the future rather than reporting on the past
OPERATIONS EFFICIENCY
Market changes and business strategy adjustments drive utilities to continuously improve their capabilities or efficiency by adjusting the organization, processes and/or technology. Enite provides a level of operations expertise unique among general management consulting firms. Enite’s definition of operations includes process development, supply chain, maintenance, procurement and sourcing, distribution, finance, accounting and human resources strategy. Combining deep functional skills with service-industry experience, our improvement levers can include process redesign and automation, consolidation and new sourcing strategies such as outsourcing and offshoring which focus on corporate-centered value.
Enite helps clients build competitive and differentiating operational capabilities that deliver value by improving profitability that allows for investment in future needs. Enite has achieved excellent results by leveraging experienced Lean Six Sigma (LSS) Black Belts and developing LSS programs within your organization to ensure a self-sustaining culture of continuous improvement.
CHALLENGES AND OPPORTUNITIES
- Achieve a competitive advantage through the prudent use of operational optimization, which can improve quality and productivity, power innovation, provide new sources of revenue, open up new markets, and deliver a sustainable cost benefit
The manufacturing industry consists of companies in three sectors: chemicals, industrial products, and machinery & components. The companies in these sectors continually face an economic environment that requires them to explore key strategic questions. Enite helps clients choose the main levers to optimize operations. These include, among others, asset productivity, strategic sourcing, industrial footprint, risk, and complexity management.
We help clients take advantage of new technologies, pursue growth opportunities, and improve their operations in technically-complex design and manufacturing environments. We have deep functional expertise across the value chain, including product development, manufacturing, purchasing, and supply, as well as branding, distribution, and retailing.
SOME CURRENT INDUSTRY TRENDS AND ISSUES THAT MANUFACTURING CLIENTS ARE FACING:
SPECIALTY CHEMICALS
Demand is growing in emerging markets, but growth in mature markets has stalled. International players are continuing to consolidate, while local incumbents are investing outside of their home markets.
CHALLENGES AND OPPORTUNITIES
- Reduce unnecessary complexity, develop needed purchasing strategies, create low-cost global building blocks
- Redesign supply chains for optimal flexibility and the strategic advantage gained by being able to deliver the right product—at the right time
PETROCHEMICALS
The competitive dynamics of the global petrochemical industry—the chemical industry’s largest sub-sector—are changing. To make the right strategic decisions, companies must understand the industry’s shifting market forces, as well as overall trends in demand growth and sources of cost advantage.
CHALLENGES AND OPPORTUNITIES
- Analyze margins and determine pricing optimization
- Design and implement long term market expansion strategies
INDUSTRIAL PRODUCTS
Industrial product manufacturing is changing in North America. Demand is growing in emerging markets, but growth in mature markets has stagnated. Individual micro-markets within larger regions are developing in vastly divergent ways, generating a need for granular analysis and insights.
CHALLENGES AND OPPORTUNITIES
- Develop capital management and allocation programs
- Provide reliability centered maintenance and facility optimization
The private-equity (PE) industry is undergoing an unprecedented competitive landscape after decades of record investment and returns. Now, funds are faced with steep valuations further increasing the demand for immediate operational and performance improvements.
Within the private equity industry, Enite services a broad range of industrial clients and pre- Mergers & Acquisitions (M&A) due diligence and post acquisition rapid results implementation.
SOME CURRENT INDUSTRY TRENDS AND ISSUES THAT PRIVATE EQUITY CLIENTS ARE FACING:
OPERATIONAL CHANGE AND IMPROVEMENT
Market changes and business strategy adjustments drive energy-focused private equity firms to continuously improve and/or adjust organization, processes, and technology.
CHALLENGES AND OPPORTUNITIES
- Develop hedge strategies to improve efficiency of refining operation
- Create strategies to meet growing demands of power in North America, which will require conventional power solutions to meet estimated needs of 2025
INVESTMENT OPPORTUNITIES / DUE DILIGENCE
Private Equity firms are constantly looking for new investment opportunities, often in industries where they lack expertise. They need external help to quickly gain a deep understanding of the market so that they can develop a viable presence.
CHALLENGES AND OPPORTUNITIES
- Invest in credible onshore drilling and emerging exploration technologies
- Value opportunities to purchase RECs
- Assess opportunities to acquire green power companies and/or assets