Following is an abridged press release. For the full press release, please visit: http://www.deloitte.com/us/serviceandpartssurvey
In manufacturing companies around the world, service businesses now account for a significant 46 percent of profits, according to the preliminary findings of a Global Benchmark Study on Service and Parts Management by Deloitte Touche Tohmatsu ("Deloitte"). Even more significant, the average profitability of service operations is 75 percent higher than the overall manufacturing operations, the Deloitte research shows.
The service operations reviewed by Deloitte include aftermarket sales of parts and accessories and field services such as repairs and maintenance. For many companies surveyed, profits would be significantly lower without the service business.
"It is evident that companies should no longer treat the service business as an afterthought," says Jeff Glueck, Principal with Deloitte Consulting LLP. "Instead, it should be managed effectively as a growth business and integrated into the manufacturer's core business strategy."
For the full press release, visit http://www.deloitte.com/us/serviceandpartssurvey
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