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Sweden should follow Germany´s approach to boost production

Johan Saks


2 March 2015


To read the full article in Swedish, click here.

PA industry specialist, Johan Saks, has had a byline article published in NyTeknik outlining how Sweden should follow Germany’s example of coping with competition and high labour costs.

Johan highlights how Germany is a high-cost country but remains stable due to its ability to combine technological innovation with cost effective solutions – in turn reducing production costs.

He writes: “This is most noticeable in the automotive and electronics industries. New models with better performance and increased features are now launched at a lower price than their predecessors.”

For Swedish companies to remain as competitive as their German counterparts, Johan says they need to: 

 • undertake a systematic cost analysis of all new and existing products

• establish cross-functional teams where the purchase and development department   
  shares processes, targets and incentive systems

• purchase strategies that prioritise partnerships, multi-year contracts and profit sharing

• establish a commercial culture with a good understanding of cost drivers within the 

• recruit more experts with extensive expertise in cost management and cost analysis.

Johan concludes: “Given that many Swedish industrial companies have been around for more than a century, the interest in maintaining its leading role should be obvious. With a more targeted approach the industry could help to secure the future of Sweden – and offer more jobs.”

Johan Saks is an 
industry specialist at PA Consulting Group

To read more about PA's technology and innovation heritage click here  or contact us.

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