Case Study

Identifying new growth markets for expansion

Empowering a global engineering consulting firm to pinpoint high growth areas in CEE aligned with their strategic vision

Details:

Challenge Solution Result

Client: A global engineering consulting firm

The Central and Eastern European (CEE) region is poised for significant growth, driven by substantial investments from Western financial institutions. The geopolitical landscape has shifted following Russia’s invasion of Ukraine, enhancing the region’s importance and leading to increased defense spending. Meanwhile, concerns over energy security and the pursuit of decarbonisation goals have spurred substantial investments in energy transition initiatives. While these sectors present considerable opportunities, they also demand significant investments and are heavily regulated by governments. Companies operating in this environment need independent, robust analysis to assess opportunities and risks, regulatory challenges as well as market entry barriers to conduct strategic planning and feasibility analysis.

Details

Find out how we can help you

The Challenge

Our client, a multinational engineering consulting firm, sought a comprehensive analysis of growth opportunities across 10 CEE countries and 4 key sectors over the next 15 years to inform its long-term investment strategy. Recognising the unique local conditions affecting each CEE economy, the client required a detailed breakdown of key macroeconomic indicators and sector outlook forecasts.

The client’s primary focus areas included energy transition, nuclear energy, defense and space. Given the significant role of governments in shaping these sectors, the client required an in-depth understanding of future sector directions as set out through government strategies and funding plans.

Lastly, our client required an assessment of the risks associated with operating in each country, particularly regarding market entry challenges, such as potential hostility toward foreign firms and other government interventions through regulation, taxation, subsidies or other influence.

The Solution

We delivered a comprehensive analysis of the largest growth opportunities in the four industries of interest to the client. The analysis drew on:

Macroeconomic forecasts: Our Global Economic Model provided 15-year forecasts of key macroeconomic indicators for each of the 10 CEE countries, highlighting the scale of potential opportunities in each market.
Sector forecasts: Our Global Industry Model offered detailed forecasts of the specific future performance of the client’s sectors of interest.
Green transition opportunities: Our Global Climate Service enabled our client to get more specific insights into the green transition sector and related opportunities.

Our analysis included a thorough review of EU and country specific initiatives and strategies related to the client’s target sectors. This included analysing the country’s Industrial Strategy as it relates to the four target sectors, its plans submitted to the European Commission such as National Energy and Climate Plans (NECPs) and Recovery and Resilience Plans (RRPs) and announcements about spending on infrastructure in each country. We also identified major projects taking place in each sector and potential local partners for the client to consider in pursuing these opportunities.

Lastly, we evaluated the risks of operating in each country such as corruption and political instability. We further examined sector-specific challenges, identifying legislation that may hinder foreign-owned firms, thereby providing a comprehensive view of the risk landscapes and business environment.

The Result

We ranked the expansion opportunities in the four sectors of interest across the 10 CEE countries, providing intuitive conclusions and comprehensive analysis underpinned by solid modelling and forecasting. This strategic insight has informed the client’s immediate investment decisions and will continue to guide their long-term strategic planning in the years ahead.

Download the case study