Growth and development of pharmaceutical MNCs propel growth of Contract Research Organizations (CROs) in Singapore and China

The combination of patent expiration of main revenue generating drugs, competition from generic versions of branded drugs, and increasing research and development costs are forcing pharmaceutical companies to look for strategies to cut costs and speed up the R&D processes. In order to boost productivity, companies are now contracting out more parts of their businesses while they restructure. This includes outsourcing of both clinical services and research, both of which are a majority part of CRO’s work.

A report conducted by Business Insights states that the global CRO market is expected to grow 14% per year during the next two years, making contract research a USD $35 billion industry by 2013 while Frost and Sullivan[i] estimates the CRO market to be approximately USD $40 billion by 2014.

Worldwide Big Pharmas Outsourcing Deals to CROs[ii]

Covance has made a 10-year agreement with Eli Lilly in 2008, its first such deal, a landmark $1.6 billion contract that has set it in charge of much of Eli Lilly service facilities in Indianapolis.

Sanofi-Aventis has also chosen the same route in Sept 2010, for $2.2 billion, with Covance who now has the next ten years to improve Sanofi’s Porcheville, France and Alnwick, UK R&D productivity sites.

In Oct 2010, GlaxoSmithKline has also taken up the trend to contract parts of their work to CROs. It has moved 14 researchers and several patent rights to Convergence Pharmaceuticals, in exchange for an 18% equity stake.

Singapore attracts CROs[iii]

            Attractive location for CROs

Being ranked as the “World’s Easiest Place to Do Business” (World Bank, 2009), not only does Singapore has a strong legal system, stable political system, world-class infrastructure and reliable public utilities, it also has an excellent connectivity and access to talents.

            Accelerator of drug discovery and development in Asia

The integrated countrywide research network coupled with advanced infrastructure linking research institutions, hospitals and universities have propelled the discovery of many innovative solutions to address current pressing medical needs. Moreover, Singapore ranks no. 1 in the world for intellectual property (IP) protection (World Economic Forum Global Competitiveness Report 2009-2010) and has a regulatory framework that facilitates innovation. In October 2009, Singapore was accepted into OECD’s Mutual Acceptance of Data framework that enables pre-clinical trials data from many of Singapore’s GLP-compliant facilities to be accepted by 30 OECD and non-OECD members that include the U.S., EU and Japan. This facilitates drug and/or device registration in the corresponding countries.

            Choice of CRO headquarter location

Due to the above, there is also a trend that the large CROs (Quintiles and Takeda) are moving their headquarters there. Some of the other large, well-known CROs present in Singapore includes Quintiles, Covance, Pharmaceutical Product Development (PPD), ICON Plc, Parexel and Lundbeck.

Shifting CRO work to China

However, the roses are not always red for the CROs operating in Singapore. Due to the small population size of approximately 4 million, there are many practical limitations for the possible extent of work. Labor cost is comparatively more expensive.  Although Singapore is a multi-cultural society, the genetic diversity is not superior to other developing countries in the region.  Also, it is difficult to achieve enrolment numbers for later-phase clinical trials that require large patient populations.

            CROs in China [iv]

CROs started operating in China in the mid-1990s when several of the world’s leading CROs (Quintiles Transnational, Covance and Kendle) established a presence in Beijing. Contract research has experienced explosive growth since then, and today China is home to more than 300 CROs of all sizes. The growth has been fuelled by demographic changes and economic trends, as well as recognition of the opportunities associated with a market whose potential has been estimated at up to $1 billion (8 billion RMB).

In 2005, Shanghai Biopharmaceutical R&D CRO Service Base and Shanghai Pudong Biopharmaceutical R&D CRO Service Center formally opened in the Shanghai Zhangjiang Hi-tech Park. The Center operates under U.S. GLP standards and was planned to be Asia’s largest CRO facility.

Dr. Ge Li, president of Wuxi Pharma Tech, China’s largest pharma CRO, is very optimistic about the contract research industry in China. Since the establishment of his firm in 2001, it has become China’s largest pharmaceutical R&D service firm and the world’s fastest growing pharma services company. Its revenues expanded nearly seven-fold, reaching $21 million in 2004, within three years. It has also been profiled as a case study by Harvard Business School.

            CROs’ opportunities in China

An obvious reason for the increased presence of CROs to China is the lower costs. The cost of drug development in China is 20% of that of in the U.S. and many other countries.[v] Cost comparison between China and US-based CRO’s shows that study savings of between 35–50% are achievable and that these savings are likely to continue through 2012.[vi]

Other reasons fuelling this shift includes: genetic diversity with more than 50 ethnic representations, large pool of potential trial participants with a population of 1.3 billion, entry into the World Trade Organization (WTO) and establishment of China’s State Drug Administration (SDA, now called the SFDA). Also driving this growth are the hai gui, Chinese nationals who return to China after gaining professional experience in Western biopharmaceutical companies.

            China’s changing regulatory frameworks – good or bad for CROs’ business

Following China’s entry into the WTO in 2001, pharmaceutical regulations were put in place and Good Clinical Practice (GCP) standards were issued in September 2003. This critical milestone clearly defined CRO and stipulated for the first time that CROs in China could conduct clinical trials on behalf of their clients. It provides a gateway and guide for CROs to carry out activities in China.

McClurg, vice president and CSO at MDS Pharma Services says, “As China improves its regulatory structure, the environment will become more normalized and more reliable. People there are recognizing the importance of playing by the regulatory and business rules [of other countries].” McClurg believes that more people will begin to consider Chinese firms as potential partners.

However, rules and regulations are constantly changed, as in the foreigners’ tax, in China and enforcement is also unevenly distributed. Hence, much delft is required to navigate the changing landscape.

            Challenges for CROs to operate in China

“However, it would be a mistake to go there with the primary reason of saving money,” McClurg cautions. “The decision should be made based on the importance of the domestic opportunity. Your expense profile will be different, but not substantially less. Reduced personnel costs will be offset by increased real estate costs, increased travel, management, training, and start-up time and expenses. Establishing personnel policies and finding the right partners is a long-term process that takes a real commitment.”

Pharmaceutical companies have been and are still expanding their R&D efforts in China. In Oct 2011, Danish pharmaceutical company Lundbeck opened its first research and development (R&D) centre to strengthen its footprint in the Chinese research environment and enables it to perform tasks that were previously outsourced to Chinese contract research organisations.

Hence, not only do the CROs face external challenges of China’s dynamic landscape, they also face competition from within the pharmaceutical industry who is also their clients.

In summary, CROs are moving to Singapore and China with many similar and different needs specific to the environments and industry requirements. However, it is no doubt that CROs will continue to facilitate the development of international pharmaceutical and biopharmaceutical industries. The next 5 to 10 years will be an important period for the expansion of contract research in both geographies.

Despite going without 3G connectivity, Thailand mobile services sector is a highly competitive and mature market with only 3 major players capturing more than 90% of the overall subscriber base. The kingdom is among countries with the highest mobile penetration rate in the region, surpassing Japan and Korea. At the end of 2010, according to Thai regulator, the National Telecommunication Commission (NTC), there are over 70 million mobile subscribers, reflecting 107.1% mobile penetration rate.

Source: BMI, 2011

Mobile services market will continue to out-perform the country economic growth. The industry performance is forecasted to be positive, with 5.1% CAGR from 2011-2015 in subscriber base. Still, number of 3G phone subscribers in 2010 only accounted for 0.1% of the overall number of subscribers. But with the modernization of the network, the number of 3G subscribers is expected to account  for 10.9% of the overall market with more than 82.3% CAGR from 2011-2015 in 3G customer base.

Source: BMI, 2011

Faster connectivity and higher bandwidth from utilization of new spectrums will open doors for various telephony services and encourage more development in mobile content and other value-added services (VAS). This will bring opportunity to players in the ecosystem; operators, mobile device vendors, software and application developers alike.

In Thailand, 3G telephony is expected to spark opportunities to increase operators’ revenue from higher usage of non-voice services and encourage growth in mobile content and other services, but turbulences in commercial license auction of 2.1 GHz spectrums have placed obstacles for mobile operators to benefit from the market’s high potential growth. After more than a year of delayed auction, confusion in regulatory and legal framework forces mobile operators to re-think their strategy and investment plans for 3G network roll-out.

With fast approaching expiration of concession between major operators and stage-owned enterprises, operators are forced to put their bets in uncertainty of 3G license auction and need to come up with solutions to solve the growing demand for mobile data and bandwidth problems. Operators are forced to upgrade parts of their existing networks to 3G telephony by recycling 900 MHz and 850 MHz spectrums. However, the birth of this “Hybrid 3G Network” is only a short-term solution for operators, due to constraint in bandwidth and the network is different from ITU 3G international standards.

The future of 3G network in Thailand is an uncertain one. Although the country is abundant with opportunity for players in telecommunication sector, the lack of 3G services will continue to hinder industry growth and investment. The latest development from the newly appointed regulator, Office of National Broadcasting and Telecommunication commission (NBTC), is that the auction for commercial 3G license will take place by 2012. However, the big question for operators is where to focus the investment weather on the new infrastructure for the new official 3G services or expanding the current “Hybrid 3G Network”.

The battery market can be divided into the original equipment market (OEM)  and the automotive replacement market (REM).

The value of the automotive replacement battery market doubled between 2005 to 2009, and key players such as Yuasa focus on that market.

Source: Statistics Indonesa

GS Battery dominates Indonesia’s domestic battery market 

GS Battery, as the subsidiary of Astra Otoparts, has the direct access to supply battery to the OEMs under the Astra Group, such as Toyota, Daihatsu, and Isuzu. As of now, Astra Otoparts is the leader in the automotive component market in Indonesia with 66 main dealers spread all over Indonesia. The closest challenger to GS Battery is Yuasa, which mainly targets the the REM market and motorcycle battery.

Below is the brief overview of the second domestic market leader, PT. Yuasa Battery Indonesia, and also the largest battery exporter in Indonesia, PT. Trimitra Baterai Prakasa.

PT. Yuasa Battery Indonesia targets the REM market

                Pt. Yuasa Battery Indonesia, established in 1975, is the second market leader in the automotive battery in Indonesia. It supplies battery for domestic market, both for OEM and REM, and also for foreign market. Currently the manufacturing plant is capable of producing 3 million units of automotive batteries, 9 million units of motorcycle batteries, and 1.2 million units of industrial batteries per year.

The company has appointed PT. Santi Yoga as the sole distributor of Yuasa Battery in Indonesia. The strength of this company lies in the strong distribution channel, with 27 main dealers that are ready to distribute Yuasa products to over 5,000 shops and workshops in Indonesia.

PT. Trimitra Baterai Prakasa is Indonesia’s largest battery exporter

PT. Trimitra Baterai Prakasa was established in 1991. Today, the company is one of the largest exporters of automotive battery in Southeast Asia, under the brand of G-Force. The domestic market only accounts for about 10% of the sales, and the rest are exported to some countries in Europe, Asia, Australia, and Africa. The current production capacity is 4.5 million units/year, and they are currently planning to expand the capacity to 6 million units/year by 2012.

For the domestic market, G-Force also takes part to in supplying battery to several OEMs such as Opel, Mercedes-Benz, Cherokee, Audi & VW Caravelle, Hyundai, and Volvo. PT. Santiniluwansa Lestari is the main distributor of G-Force brand in Indonesia, and the dealers are spread all around Indonesia – in Jawa, Sumatra, Bali, Kalimantan, Sulawesi, and Irian Jaya.

With over 860 million subscribers, India is the fastest growing and second largest telecom market in the world. After the successful 3G spectrum auction in 2010, telcos are now busy rolling out 3G services in a phased manner.

Top Telcos such as Airtel, Reliance, BSNL and Vodafone hold licenses for major revenue generating circles and are expected to account for 2/3^rd of 3G connections by 2015.  By the end of 2011, India is expected to have over 15-20 million 3G subscribers and by 2015, this number is expected to reach well above 250 million, contributing to over 25% of the total subscriber base in India.

India’s 3G roll out presents tremendous opportunity to all telecom partners, especially due to increased propensity towards data consumption. Revenue from value-added services (VAS) contributes to less than 10% of overall operator’s revenues currently. But by 2015, this is likely to double upto 18-20%. From the current US$ 3.2 billion, VAS is projected to reach US$ 12.2 billion by 2015, out of which 3G alone will contribute over 70% of the revenue share.

Non-messaging VAS segment will lead the growth, clocking a compound annual rate growth (CAGR) of 33%, up from US$ 2 billion currently to US$ 8.5 billion by 2015. Mobile Internet, Music and Video Services will contribute to 90% of the total non messaging data revenue.

Software vendors are gearing up to tap the opportunity. They are trying to engage in close partnerships with carriers and handset makers, to launch new apps and services fit for consumption on 3G networks. Especially with the launch of numerous micro brands/ private handset labels, much action is expected in coming days for this particular part of the telecommunication value chain.

Collaborations to watch out for, such as Micromax’s tie up with Nazara to pre-load multiplayer games, Lava’s tie up with Astute for pre-loading utility apps and Samsung’s tie ups with software vendors like Ibibo, India Games, Apalya and MapmyIndia for preloading various 3G related software are just the tip of the iceberg.

Since software vendors are numerous and lack control on billing and payment mechanisms, they offer very limited differentiation, which marginalizes their role in the value chain and also their revenue share. To aim for bigger bite of revenues, software vendors will have to create differentiation based on multiple reach to customers, exclusive and up-to-date content and forging much tighter partnerships with telecommunication partners by providing technology deployment and full service support.

Korea is already the world leader in online music sales with just over 90% of music sales coming from online technologies which puts Korea  #1in the world. In 2009, mobile music sales in Korea will hit USD 390 million and at the current growth rate the industry should hit USD 500 million by 2015. Similar trends are observed in Japan.

Mobile operators in Korea have been the fastest to innovate and capture the mobile music market. Since 2008, Korean mobile carriers, especially SK Telecom view music streaming and downloading as the next cash cow for data services. In a quasi coup d’état the Korean mobile operators have transformed the music distribution platforms.

SK Telecom, has provided a mobile music portal service called ‘MelOn’ since 2004. MelOn is the first integrated, wired and wireless, music service that allows users to enjoy music virtually anytime, anywhere using a portable MP3 player, a PC, or a mobile phone. The key MelOn interface is a music download and streaming Internet portal, www.melon.co.kr. The service is similar to a rental service, with users “renting” tracks on a monthly basis for use on various terminals. MelOn users pay a 5000 won (US$4.50) monthly subscription to stream music or download tracks to their phone as long as their subscription is current. To download tracks onto the handset, users pay for airtime at regular call rates, regardless of the size of the track.

This end-user friendly platform has completely changed the music landscape and is now being reproduced in Australia, Hong Kong, Singapore, Thailand by local mobile operators.

How did the Korean mobile operators  innovate and transform the music industry?

Asia Mobile Healthcare Market

Mobile healthcare innovation seems to be driven from Asia. Already Japan, Korea and Australia have seen home grown firms taking the lead in the region.

In Japan Mobile Healthcare Inc. is a Tokyo-based integrated solutions provider revolutionizing the healthcare industry by providing real-time mobile solutions in areas of chronic and lifestyle disease management. Lifewatcher combines Internet and cell phone technology to produce real-time mobile solutions for preventing and managing lifestyle-related chronic diseases.  The company’s flagship product, Lifewatcher, is a mobile phone-based health management application for people with so-called ‘lifestyle diseases’ such as diabetes and obesity. Users can monitor their own conditions by logging blood sugar levels, calorie intake, exercise and many other variables into their ‘always on’ mobile device, creating a one-glance health portfolio, which collates daily, monthly and even yearly data. It also delivers vital medical information, reminders and alerts with escalating alarm-levels if goals are not met.  Using real-time cellular technology, diabetics and lifestyle illness sufferers can also be in constant dialogue with medical practitioners to ensure health measures are in check or, if not, to spark intervention that could save lives. With the dramatic rise of diabetes and obesity to pandemic levels in countries like Japan and the U.S., doctors have been welcoming this self-directed management tool that affordably and easily increases drug, nutrition, exercise and monitoring compliance for sufferers.

Korea-based Healthpia launched the world’s first diabetic phone–that is, a mobile phone (Iphone friendly) with the ability to measure the blood sugar levels of diabetic users. Users place a drop of blood on the end of a strip of testing paper, stick the paper into a sensor located in the extra battery pack, and get a reading on the phone screen. The reading is stored in the phone and also forwarded to an online database, which can be accessed not only by the patients, but doctors.

Another example is Taiwan Mobile Healthcare Services. It provides high-bandwidth links for doctors treating patients at Taipei Medical University Hospital, Tri-Service General Hospital and Taipei City-Wan Fang Hospital. As part of the government’s M-Taiwan initiative, a wireless solution gives doctors virtual access to patient medical records, monitors the condition of long-term sufferers of chronic diseases, provides high-quality diagnostic images and video, and provides remote outpatient registration to improve healthcare services.

In May 2009 Bupa Australia launched an innovative software application designed to provide customers with access to free, mobile healthcare provider information. In doing so, Bupa became the first Australian health insurer to offer a customer focussed application designed specifically for people who have an Apple iPhone . The free application can be downloaded via the Apple iTunes store and then, with only a few simple clicks, people can use their iPhone  to locate their closest optometrists, physiotherapists, dentists and chiropractors; as well as hospitals and Bupa customer service centres.

Damien Duhamel

www.solidiance.com

The global economy is facing a severe downturn. Situation in the US and Europe is bleak and no one expects a fast change for the better. Everyone seems to agree that the turnaround will happen first in Asia and since Japan is not looking any better than its Western counter parts, pressure is mounting on China.

So, how is the current state of business in China?

Only three of all companies mentioned that their turnover is growing or that they expected to grow this year. A few companies were maintaining their figures and the large majority of businesses were contracting up to 50% year-on-year.

Most companies reduced stock levels and stopped buying for several months. Companies are ordering again, but priorities for some customers have shifted. Suppliers reported that their customers were prioritizing very short lead times over cheapest price.

How are China’s industries faring?

- The good: Healthcare and food are leading the pack, as well as companies directly benefiting from the government spending plan i.e. telecom with 3G standard and infrastructure construction
- The bad: Chemicals, raw materials such as coal and steel, service companies, manufacturing of machinery, automotive supply and in general export depending businesses.
- The ugly: Logistics companies, ship building, hospitality/hotels

Some 670 billion USD have been earmarked for construction, coal, machinery and equipment manufacturing and a couple other key industries. Nevertheless, the stimulus is only reaching a few international companies, 4 of the 28 reported that they are feeling the impact.  Companies that either directly participate in government tenders for large investment projects or supply equipment for these projects are seeing a significant impact

A good example is a heavy machinery company supplying Chinese construction material manufacturers. The model works well: Chinese construction companies are winning government contracts and use these contracts as guarantees for bank loans. The current liberal lending policy allows Chinese companies now to buy on credit previously unaffordable  international equipment.

But not the whole construction industry is booming again – spending and credits are limited to government projects and companies depending on the private construction sector are left out.

How is that impacting employment?

One growing company mentioned a special “China deal” where they negotiated with HQ to give staff a moderate salary increase while the rest of global salaries remain frozen. This is a rare exemption. Most companies trimmed bonus schemes and at best kept their old salaries. A widely used measure to curb cost has been salary reductions across the board, ranging from 10% to 50% (!). International companies have critically reviewed expat packages and sent staff packing – in one case from 30+ to under 10 expats within a few weeks.
At the same time, though, few office staff has been laid off. Companies rather reduce working hours and payments, in some cases sending people on unpaid leave. There is a great deal of uncertainty on when business will pick up again and everyone still remembers shortages of qualified staff just a few months ago.

How are employees reacting?

After some 20 years of fast and steady growth, this is the first economic crisis China’s younger generation is facing.  And the reaction is surprisingly rational – considering a generation of job hoppers used to fast promotions and regular salary increases. Employees recognize the economic crisis and are widely accepting temporary salary cuts.

Which strategy to fight the crisis?

Most companies have frozen their overall expansion plans and introduced cost cutting measures, i.e. no hiring of new staff, reduced salaries and expense budgets. Several companies mentioned that they are using the crisis to critically review staff performance especially since bargaining power has switched from employee to employer. Most drastic example is a company that permanently reduced salaries by 30+%

But not everyone is trying to hide before the storm – two companies mentioned their aggressive expansion strategy. Despite weak performance in their other key markets in Europe, Japan and the US, both companies have invested in planning and set aside significant budgets to grow their business and market position over the next two years.

“There are no real alternatives to Asia when looking for large growth markets. Companies that seized opportunities and positioned themselves well during the Asian financial crisis 1997, benefited from a decade of unparalleled growth. It will be interesting to see who wins this time”

Heiko Bugs – Director China

www.solidiance.com

The Service Logistics business (a.k.a aftermarkets business) in Asia is on a high growth trajectory, fueled by ongoing shift of OEM’s manufacturing towards low cost destinations in Asia. While outsourcing service logistics to 3PLs has been going on for several years in key industries such as automotive, an evolution in terms of service offerings such as integrated or customized solutions for different industries is gaining traction. Industry players have understood that service logistics can complement revenue realization rather than being a cost factor – thereby many firms are now trying to transition their after sales from a cost center to a P&L.

Solidiance examined 6 key industries and interviewed over 125 executives – logistics managers and executives in each vertical to understand how they are currently working with 3PLs, what are the bottlenecks and issues they face in their related Service Logistics activity and what would be the best improvements they would like to see. Targeted industries were Aerospace, Electronics, Telecom, Industrial equipment, Medical equipment and Semiconductor equipment across 6 countries in South East Asia: Singapore, Malaysia, Thailand, Indonesia, Philippines and Vietnam.

Findings show that eighty three percent (83%) of the Service Logistics activity in the SEA occurs in Singapore and Malaysia (Penang). Singapore has a 60% share of the SEA market primarily due to its regional hub status. Further, the estimated total service logistics market in SEA is circa Eur. 410 M (FY 2008) (in-source & out-source). Semiconductor, Telecom and namely the Electronics industries are the fastest growing and most outsourced industries, the latter being the most attractive industry in terms of growth and size.

Further, the split in terms of percentage between in sourced and outsourced market revenue is similar among all the sectors in Singapore and the rest of the countries in South East Asia. A notable exception  is the aerospace industry where all the companies interviewed in Malaysia in-source the warehousing, mainly for IP purposes, which is still a important issue in this sector.

The Aerospace industry is characterized by large warehouse requirements and regulations (FAA). In this sector, the majority of companies in Singapore are outsourcing their warehousing to 3PLs. The needs of industry players are highly specialized, and 3PLs need strong industry knowledge in order to serve them.
- For example, 3PLs must be able to appropriately handle large and unconventionally shaped parts, and be able to appropriately store carbon fiber parts which are temperature  sensitive.
- Most of the companies in this sector to rely on 3PLs expertise for warehousing and transportation so that they can concentrate on repairs. However, the key concerns –challenges for outsourcing will include – confidentiality and IP related issues.

The Electronics and Telecom sectors outsource their warehousing to 3PLs in a larger proportion than the other industries.
- In the Electronics industry, the existence of multiple sub-sectors results in large volumes of finished goods and spare part movement. Outsourcing is therefore the best way to improve efficiency of Service Logistics in this industry.
- As a result, most of the companies prefer to outsource their warehousing component to optimize cost, especially in Singapore.

Telecom players in Singapore mainly prefer outsourcing their warehousing to 3PLs in order to be more efficient in ensuring tight control in safety & security measures for telecom equipment.
- Moreover, 3PLs are able to customize and adapt solutions in pace with the fast changes in the telecom industry.
- Hence companies vie for long term partnerships/service agreements with 3PLs to optimize their long term contracts.

The Medical sector is characterized by high value parts and a relatively small size in the after sales business in South East Asia.
- In this industry, players rely on 3PLs for warehousing and customized solutions to optimize their supply chains. Building efficient local networks is a key point, but the reactivity of  the supply chain is another.
- In some cases, special parts available in warehouses on other continents (US, Europe) must be supplied within 24h to the medical equipment manufacturer in Asia because its clients (e.g. hospitals) sometimes require interventions within 2 to 4 hours.  Repairs are in-sourced by a vast majority because of the level of technical knowledge required to  handle the repair of specialized equipment.

In the Semiconductor equipment industry, companies also believe outsourcing is advantageous because 3PLs are better equipped with the latest technologies and know how to handle logistics efficiently.
- Relying on local 3PLs is the most preferred option for several companies in this industry, a major reason being that it allows them to handle customs issues faster and with a stronger “last mile” reach than the global logistics companies.

The Industrial equipment industry differentiates itself from the other sectors by leaning more towards in-sourcing
- This trend is especially true in Malaysia and Thailand where an average of 6% of companies are outsourcing this part of their service logistics.
- Most of those companies are manufacturing heavy industrial products. However, in the sub-segment of control automation companies are keen on using 3PLs for managing their warehousing.

The Service Logistics business is increasingly shifting towards outsourcing not only transportation, but also warehousing. Key customer discussions confirm this trend of growth grow despite the current crisis, primarily driven by businesses from emerging countries such as China, India and Indonesia. The current financial turmoil should have a “positive” effect on after sales services, especially Service Part Logistics since customers will tend to extend the life cycle of their equipment rather than buying new products.

Damien Duhamel

Managing Director Asia Pacific

www.solidiance.com