Big changes are likely to result from reductions in the size of workforces and changes to the way we work, which means staffing companies and corporate outsourcing businesses will need to think about future service provision and greater use of technology to reduce costs. Climate change and urbanization may have significant implications for pest control businesses, and companies such as Aggreko will need to invest in new technology such as renewables. Distributors will be impacted by artificial intelligence and rising levels of ecommerce and will need to invest heavily as technology develops.
Company specific thoughts:
Rentokil is well-positioned in pest control globally and has joined forces with technology partners such as Google Cloud Solutions to develop next-generation services that will offer proactive risk management. GFS, the world’s largest security business, has strong technology and an emerging cyber security business. FERM/ECM are distributors with strong scale and a very good customer proposition and ecommerce capability. HSV is setting the pace in marketing membership insurance services and home experts in a market where ecommerce is certain to expand. ADEN/RAND/HAS/PAGE all face losing market share if they don’t embrace digitalization and change work practices. Commodity outsourcers such as SRP, MTO, and SECUB could be affected if technology replaces people.
Industrials: Up close
The future will be determined by those who are willing to reinvest, adapt and turn future threats into opportunities.