It’s not very often that companies can participate in large, underserved markets – but at Entytle, we are fortunate to be one of the lucky few who have a chance of truly transforming a significant segment of the global economy. In our case, it is the often unloved, overlooked and underserved B2B aftermarket services market. For example, spare parts for machinery, consumable items for instruments, maintenance service contracts etc. Let me share a small secret with you: this is a $2 trillion market globally and it’s still growing! The mention of this underserved market however, makes people’s eyes glaze over…
Manufacturing is a very large economic sector globally, and B2B manufacturers are part of a $8+ trillion market. Yes, that’s right – half as large as the US economy! What’s even more interesting is the fact that only a few companies have made it their mission to serve customers through their entire lifecycle (think GE, United Technologies, Honeywell, Siemens, Philips and a few other Service champions). The average “non-system” share of a B2B manufacturer is about 24% or $2 Trillion. Leaders average about 45% or higher. What’s more, they enjoy amazing profit margins in these non-system businesses, and typical gross margins are 50% or higher.
It is our belief that as the broader global economy continues sputtering along, B2B manufacturers globally will make a concerted push to grow their Service businesses. We’ve already seen many industrial technology stalwarts make this a core part of their strategy, and more are bound to follow. Every 1% improvement in revenue adds $20B to the top line; lifting overall performance by 50% over the next few years can add the proverbial Trillion to the coffers of these companies.
This is our singular focus and mission at Entytle. We call it the Repeat & Recurring Revenue economy. We are leading the charge to the next trillion dollars with our customers!