Strategy& – Mastering the Challenges of Energy Costs in Europe

The energy crisis has posed challenges for industrial companies in Europe, particularly those already struggling with supply chain issues and decreased demand. Energy prices have rebounded after a peak in 2022, with natural gas prices recovering to levels above those seen prior to the crisis in 2019. Despite this, profits have declined by 14% since 2018, and there is a risk of decreased investments by 9%. Most companies have implemented short-term solutions to address these challenges, but there are significant long-term strategies that remain untapped. CEOs in 2024 are most concerned about inflation and market volatility. To survive in this environment, companies must enhance their energy resilience strategies and rethink their overall business strategies for long-term success.