- within Wealth Management and Intellectual Property topic(s)
Premium industrial manufacturing is becoming commoditized as Chinese competition moves along the value chain. Companies should transform for the ‘good enough’ world. The global industrial sector has stagnated, with pressures most pronounced at the premium end of the market. The macro backdrop is compounded by a structural shift, as Chinese companies rapidly advance into markets long dominated by Western premium manufacturers. Chinese producers are leveraging advantages ranging from input costs and access to critical materials, putting rivals’ sales and volumes under pressure.
Based on AlixPartners analysis of a sample of approximately 1,200 industrial companies, and on external market data sources used for the global revenue outlook, the industrials market is expected to remain broadly flat or decline slightly through 2027, with no meaningful recovery anticipated before 2028. Chinese products have undergone significant qualitative upgrades to compete in sectors that include industrial robots and automation, electrical equipment, and construction machinery. Their brand perception overseas may still lag, but quality and cost improvements are eroding the competitive edge of Western rivals.
Read the report below, and download it here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]
