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Public Sector Consulting for an International Production Project

A government agency responsible for developing industrial clusters in the Middle East sought to conduct an independent assessment of the feasibility of establishing an international automotive project and to develop a sound technical and economic basis for decision-making. As part of its public sector consulting services, KBC assisted with the technical and economic analysis of the planned production project, including potential cost and competitive advantages, local value creation, and the necessary framework conditions.

The Customer

A government institution in the Middle East  

As part of its public-sector consulting work, a government agency dedicated to developing industrial clusters in the Middle East sought to build a competitive automotive industry and, in doing so, promote long-term local value creation. The focus was on evaluating a production project proposed by an international automaker. The agency had to assess whether the project was economically viable and what contribution it could make to the development of broader industrial value creation. 

This raised not only questions about the planned production. Equally important was the outlook for the future: Which local suppliers could emerge? What production and manufacturing capabilities were needed to get the operation up and running? And how could the institution structure the project in a way that would create sustainable added value for both the automaker and industrial development? 

As part of its public sector consulting services, KBC helped the institution bring these perspectives together and develop a sound basis for decision-making based on technical, economic, and strategic information.

The Project

Public Sector Consulting for a Competitive Manufacturing Project

As part of its consulting work in the public sector, KBC conducted a comprehensive analysis of the planned production project and identified the factors that would determine its economic viability. To this end, the team developed a detailed cost model that mapped out the key production and value drivers. This enabled KBC to understand how different assembly scopes, production requirements, and local costs could impact profitability. 

As the project progressed, KBC translated the analysis into various scenarios for production and local value creation. The team examined which components and assemblies were fundamentally suitable for local manufacturing and what technological and organizational prerequisites were required for this. In doing so, KBC considered not only individual parts but also the development of a robust supplier structure as part of the overall production model. 

These findings provided an overall picture of the project. It showed how production volume, investment needs, local manufacturing, and supplier development interacted. At the same time, the institution was better able to assess which framework conditions and incentives would support the implementation of a competitive production project. 

Portrait photo of Georg Huber, Senior Partner at Kemény Boehme Consultants (KBC). A man with graying hair and a short full beard, smiling broadly and looking directly into the camera. He is wearing a dark navy blue suit over a white shirt without a tie, a brown leather belt, and has both hands relaxed in his pants pockets.
Portrait photo of Georg Huber, Senior Partner at Kemény Boehme Consultants (KBC). A man with graying hair and a short full beard, smiling broadly and looking directly into the camera. He is wearing a dark navy blue suit over a white shirt without a tie, a brown leather belt, and has both hands relaxed in his pants pockets.

This Is How We View Public Sector Consulting

For KBC, consulting in the public sector means combining technical expertise with economic analysis. Working closely with the client, our team analyzed the fundamentals of the production project, developed scenarios for assembly and local manufacturing, and used these to outline a potential supplier base. In doing so, KBC created a robust basis for decision-making to support the further evaluation of the business case.

Georg Huber, Senior Partner at KBC

The result

Public Sector Consulting—A Basis for Decision-Making Regarding a Competitive Industrial Location

As part of its public-sector consulting services, KBC developed a structured decision-making framework for the further evaluation of the production project. The institution gained a clear picture of the relevant costs, the possible production scenarios, and the potential for local value creation. 

The analysis also identified which components and assemblies were suitable for local manufacturing and which capabilities, technologies, and suppliers were required for this purpose. This enabled the institution to assess the project’s appeal from two perspectives: from the perspective of the international automaker and from the perspective of the desired industrial development. 

KBC combined its assessment of the individual production project with a broader perspective on suppliers, production capacities, and industrial expertise. This resulted in a comprehensive picture that took into account both the economic viability of the project and its potential to drive the development of an automotive ecosystem. 

A portrait of Georg Huber, Senior Partner at Kemény Boehme Consultants, smiling at the camera with both hands in his pockets
A portrait of Georg Huber, Senior Partner at Kemény Boehme Consultants, smiling at the camera with both hands in his pockets
Georg Huber
Senior Partner

Facing a similar challenge? Talk to us

Whether it’s consulting in the public sector, evaluating complex production projects, or developing a local supplier and value chain strategy: In a brief discussion, we’ll determine which steps make sense and how KBC— an international boutique consulting firm based in Munich —can help you move forward. 

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