Oliver Wyman – The State of the Industrial Goods Sector in Europe, 2023

Oliver Wyman has released their inaugural report on the state of the Industrial Goods Sector in Europe. The report focuses on value creation and migration within the sector, with an emphasis on revenue growth, profitability, capital intensity, and sustainability. Despite facing challenges such as the coronavirus pandemic and the Russia-Ukraine war, the European industrial goods sector has rebounded quickly and seen significant value growth over the past decade. However, there are notable differences in value between subsectors and companies, highlighting the importance of business models and operational excellence. The report also examines the challenges and opportunities identified by industry leaders, including inflation, supply risks, recession risk, labor shortages, digital innovation, AI, new markets, and green products. A particular highlight of the report is the geopolitical section, as geopolitics is seen as the most influential factor on the fate of European industrial goods companies. Despite these challenges, industry leaders remain confident about the future. The report is based on an analysis of publicly listed companies in Europe, an online survey of European executives, and Oliver Wyman's experience as trusted advisors to the industry.