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Research Report

TSIA Industrial Equipment 40, Q4 2018

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The TSIA Industrial Equipment 40 Index aggregates and analyzes the financial outcomes of 40 industrial manufacturers quarter to quarter, with an emphasis on trends in the performance of their services lines of business. This Dataview looks at Q4 2018.

The IE 40 Index is exhibiting a number of warning signs that signal an impending business model shift:

  • The long-term trend shows that growing revenues does not lead to an increase in the profitability of services.
  • Industrial equipment is not immune to the commoditization of features and functionalities.
  • New services decoupled from the initial product need to create additional revenue streams and higher margins.
TSIA recommends developing your services along TSIA’s Remote Services Continuum and to embrace the Digital Value Chain.

Authored By:

Harald Kopp

Director, Industrial Services Research, TSIA

Publish Date: March 3, 2019

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