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Europe’s Machinery: A moment of Truth
Point of view
by Thomas Trautmann, Steffen Petersen, Daniel Hoess, and Fabian Czilwa
At a glance
Europe’s machinery and equipment industry is at a turning point. Slowing investment, rising cost structures, and declining output are putting increasing pressure on traditional business models, while global competition continues to intensify.
Across the Atlantic, the US is boosting growth through massive investments and strong industrial policy support. At the same time, China is rapidly moving up the value chain, offering comparable technologies at significantly lower prices and reshaping global competitive dynamics for European players.
In our latest paper, we explore how these structural shifts are redefining the rules for European OEMs and why past success factors are no longer sufficient in today’s volatile environment.
We outline five strategic levers that will define future winners, from innovation and time to market to geographic rebalancing, aftermarket and installed base monetization, software-enabled hardware, and portfolio optimization.
