KPMG's Industrial Markets Line of Business comprises four sectors that represent the industrial backbone of manufacturing and reflect all the elements of the supply chain — from raw materials, to manufacturing, to delivery, to the end-user. These sectors are Energy & Natural Resources (includes the following industry segments: Forestry, Mining, Oil & Gas and Power & Utilities); Industrial & Automotive Products (includes the following industry segments: Automotive, Aerospace & Defense and Industrial Products); Chemicals, and Transportation. As a result, KPMG's Industrial Markets client base consists of many of the leading, well-known global market companies in these respective sectors.
KPMG's Industrial Markets Line of Business is the second largest within the firm and stands ready to serve our clients seamlessly, through the use of our active alignment of industry sector practitioners and audit tax and advisory professionals. As such, KPMG has developed a portfolio of Industrial Market services that have specific impact and have demonstrated relevant advantages in each of our sectors. Our ongoing research has identified a host of emerging industry sector forces. Our value involves combining this research with our industry knowledge and experience to meet the current and future performance, efficiency, and risks needs of our clients.
Industrial & Automotive Products
Automotive
The automotive products represents several industry sub segments and provides services for the following parts of the value chain: Original Equipment Manufacturers (OEMs), System Integrators, as well as Tier One and Tier Two/Three Suppliers. Today's automotive companies are facing many challenges due to growing consumer influence, bringing successful new products to the market, globalization, new technology, consolidation, energy supply concerns and a changing regulatory environment. As a result automotive companies are looking for innovative methods and processes to reduce costs and time-to-market.
KPMG's automotive practice brings the needed resources (global or national) to assist manufacturers and suppliers to achieve their objectives including maximizing revenue growth, identifying and managing risk, and building market share. We help our clients to achieve sustainable cost reduction and performance improvement programs, manage consolidation, ensure compliance, manage regulatory risks, etc.
Clients
Today KPMG LLP is proud to serve:
- KPMG provides fifty-four percent of the Fortune 1000 Motor Vehicles & Parts Manufacturers with Audit & Non-Audit Services. (15 of 28)*
Aerospace & Defense
KPMG's Aerospace and Defense (A&D) practice is dedicated to working with clients to help navigate the risks and impacts of changing industry conditions; globalization, new business models, outsourcing, regulatory pressures, changing government regulations, and intensifying competition are just a few of the challenges affecting today's aerospace and defense companies. To stay competitive and profitable, companies must be adept at creating a corporate strategy that balances emerging risks with speed and innovation. Managing these challenges has moved to a new level.
Our A&D group's level of direct industry experience complements KPMG LLP's capabilities and solutions to address the distinct challenges our clients face. KPMG responds to the client's complex business challenges with consistent methodologies and common tools developed specifically for the A&D industry sector.
KPMG is a provider of end-to-end A&D solutions delivered by professionals with extensive industry experience. We are well positioned to team with A&D manufacturers, government contractors, service providers, IT and MRO companies to provide audit, tax and advisory services. Our services include targeted capabilities in specific areas that serve the needs of the A&D customer throughout its lifecycle.
Clients
Today KPMG LLP is proud to serve:
- 14 of 16 Fortune 1000 Aerospace & Defense companies with audit and non-audit services*.
- The U.S. Firm provides audit, tax, or advisory services to of the Fortune Global 500 Aerospace & Defense companies located in the United States (7 of 7)**.
Industrial Products
The industrial products group represents several industry segments inclusive of Industrial Products, Industrial Electronics and Metals. Today's industrial products companies encounter emerging challenges -- from the impacts of globalization; capital intensive investments to maintain competitiveness through technology, increased market volatility, unstable raw material prices, to the changing composition and competency of the workforce.
Such an environment requires efficient and effective risk management. Increased regulatory requirements place higher scrutiny and transparency on business operations and corporate governance. Although these elements may not be new in scope, it is important to note that increased challenges now exist in the intensity and frequency of these distinct factors on business cycles. Companies that are able to identify, manage, and mitigate risk will have a significant advantage.
KPMG's Industrial Products practice helps executives understand the emerging risk environment and can help develop the tools, methodologies, and approaches to effectively manage risk, whether operational, financial, market-oriented, or business-related.
Clients
Today KPMG LLP is proud to serve:
- Over 70 percent of the top Industrial Products companies in the Fortune 500® with audit and non-audit services (14 of 19)*
- 53 percent of Fortune 1000® Industrial Products companies with non-audit services*.
Transportation
The transportation practice focuses on five major sectors: airline, trucking, rail, maritime, and logistics services. The transportation sector today is very diverse and facing many challenges including: consolidation, rising costs (especially fuel and insurance), overcapacity, lack of pricing power, the need for yield improvement, labor concerns, etc. KPMG's Transportation Practice helps industry executives understand and manage risks to assist them in achieving their business goals. We accomplish this by providing our clients not only with a high level understanding of complex issues the industry is facing, but also comprehensive solutions to help them manage their businesses.
Clients
Today KPMG LLP is proud to serve:
- Audit services to 25 percent (6 of 24) 500® top transportation companies
- More than 57 percent of Fortune 1000® transportation companies with audit and non-audit based services (27 of 47)*
Energy & Natural Resources
The Energy & Natural Resources and Sector is composed of multiple industry segments inclusive of Oil & Gas and Power & Utilities.
Industry Sectors within Energy and Natural Resources:
- Forestry
- Mining
- Oil & Gas
- Power & Utilities
Oil & Gas
The Oil & Gas industry is divided into three major components: upstream, midstream and downstream.
- The upstream industry finds and produces crude oil and natural gas. The upstream is known as the exploration and production (E&P) sector.
- The midstream industry processes, stores, markets and transports commodities such as crude oil, natural gas, natural gas liquids (NGLs, mainly ethane, propane and butane) and sulphur.
- The downstream industry includes oil refineries, petrochemical plants, petroleum products distributors, retail outlets and natural gas distribution companies. The downstream industry touches consumers through thousands of products such as gasoline, diesel, jet fuel, heating oil, asphalt, lubricants, synthetic rubber, plastics, fertilizers, antifreeze, pesticides, pharmaceuticals, natural gas and propane.
KPMG's oil and gas practice has thrived on meeting the needs of our clients. Our clients have requirements that have become ever more exacting and complex against a background of unprecedented commercial, economic, and regulatory change throughout the worldwide industry. Consolidation will influence the future of the oil and gas industry as large U.S. corporations continue to purchase independent companies. Demand for oil and gas continues to rise, making the search for new resource locations critical to the growth of the industry. These new resource locations are often remote or in formidable environments.
We help our oil and gas clients deal with the challenges that change brings, both in terms of how their existing business is impacted, and the way they wish to shape their operations in the future. We provide this help by applying the skill and ingenuity of our people, the understanding and insights that come from our knowledge of the industry, and the dedication and commitment shared by everyone in the oil and gas practice.
Clients
Today KPMG LLP is proud to serve:
- KPMG International's member firms provide professional services to over 60 percent of the world's leading Oil & Gas companies (Source: Global 1200*)
- KPMG firms have a leading Oil & Gas audit client base, with European-based global majors, North American-based independents, refining and service companies, as well as national oil companies across many regions.
- KPMG provides audit, tax, and advisory services to 8 of the Top 10 Fortune 1000 crude-oil production companies (Source: Fortune, April 2007**)
- KPMG provides audit, tax and advisory services to 8 of the Top 10 Fortune 1000 oil and gas equipment services companies. (Source: Fortune, April 2007**)
- KPMG provides audit, tax and advisory services to 9 of the Top 10 Fortune 1000 petroleum refining companies (Source: Fortune, April 2007**)
Power & Utilities
The Power & Utilities industry is comprised of electric utilities, independent power producers, pipelines and local distribution companies.
An Electric Utility is a company (often a public utility) that engages in the generation, transmission, and distribution of electricity for sale generally in either an unregulated or regulated market. Electric utilities include investor owned, publicly owned, and cooperatives entities. They may be engaged in all or only some aspects of the industry. Power marketers are also considered electric utilities--these entities buy and sell electricity, acting as brokers, but usually do not own or operate generation, transmission, or distribution facilities. Utilities are regulated by local and national authorities.
Independent Power Producers (IPPs) are non-utility generators and exempt wholesale generators that develop and operate power generation projects.
Pipelines can be characterized as interstate or intrastate. Interstate pipelines carry natural gas across state boundaries, in some cases clear across the country. Intrastate pipelines, on the other hand, transport natural gas within a particular state. There are about 160 pipeline companies in the United States, operating over 285,000 miles of pipe. Of this, 180,000 miles consist of interstate pipelines.
Local Distribution Companies (LDCs) are companies involved in the delivery of natural gas to consumers within a specific geographic area. There are two basic types of local distribution companies: those owned by investors, and public gas systems owned by local governments. There are over 1,200 natural gas distribution companies in the U.S., with ownership of over 833,000 miles of distribution pipe.
Today's power and utility companies face unprecedented challenges-from increasing demand for electric power to deregulation, consolidation, regulatory compliance, and greater risk in all areas of operation. Such an environment requires efficient and effective risk management. Increased regulatory requirements around corporate governance and intense scrutiny by legislators, regulators, and energy consumers present utilities and their executives with formidable issues. Companies that are able to identify, manage, and mitigate risk will have a significant advantage.
KPMG's Power & Utilities practice helps executives understand the emerging risk environment and can help develop the tools, methodologies, and approaches to effectively manage risk, whether operational, market-oriented, or business-related.
Clients
Today KPMG LLP is proud to serve:
- KPMG International's member firms provide professional services to over 60 percent of the world's leading Power & Utilities Companies (Source: Global 1200*)
- KPMG provides audit, tax, and advisory services to 93 percent of the Top 15 Fortune 1000 utilities: gas and electric (Source: Fortune, April 2007**)
- KPMG provides audit, tax and advisory services to 78 percent of the Top 8 Fortune 1000 pipeline companies (Source: Fortune, April 2007**)
- KPMG provides audit, tax and advisory services to 90 percent of the Top 10 Fortune 1000 energy companies (Source: Fortune, April 2007**)
Chemicals
The chemical industry includes petrochemicals, agrochemicals, polymers, paints, and oleochemicals. Chemical processes are used, including chemical reactions to form new substances, separations based on properties such as solubility or ionic charge, and distillations, in addition to transformations by heating and other methods.
Chemical industries are involved in the processing of raw materials obtained by mining, and agriculture among other supply sources, into materials and substances and chemical compounds that are end products, or are used in other industries.
Rising costs, together with continuing pressure to improve performance, have led chemicals companies to focus aggressively on efficiency and restructuring. These trends, coupled with the need to manage risk, create real challenges. Companies must continue to look outward for growth and focus on customer service as well as tackling changes to businesses, processes, and systems.
KPMG is one of the leading professional services firms serving market leaders within the chemicals industry. Our chemicals practice serves companies that represent the full range of commodity, specialty/performance, and fine chemical products, and we are intimately familiar with the unique complexities of each of these segments. Our long-term industry experience helps our team understand our client's business priorities, as well as the strategic issues facing the industry.
Clients
Today KPMG LLP is proud to serve:
- KPMG International's global network audits more than 30 percent of the global chemicals companies with revenues in excess of $1 billion. (Source: Chemical Week, September 2006*). We audit eight of the top 20 global chemical companies.
- KPMG provides professional services to 18 out of the top 20 Chemical Billion Dollar Club companies as listed in Chemical Week on September 2006.
- KPMG International's global network provides services to over 84 percent of the listed Chemicals companies on the Global 1200** listing.
- KPMG provides Audit Services to 28 percent of the Global 1200** listed Chemicals companies.
- KPMG provides audit and/or tax services to approximately 68 percent of the chemical companies in the Fortune 1000. (Source: Fortune 1000, April 2007***)
|
