Webinar: 27th of February @11AM - Managing Cost and Carbon in Times of Industry Transformation
In 2024, manufacturers faced economic uncertainty and market consolidation. Discover how they can turn challenges into opportunities and thrive in 2025 through innovation, agility, and delivering clear value.
The manufacturing industry faced significant upheaval in 2024, with economic uncertainty, shifting market conditions, and increasing competition putting companies under immense pressure to adapt. In Europe alone, the automotive supply sector announced over 54,000 job cuts, highlighting the challenges manufacturers faced. Yet these struggles also opened the door for transformation. As we look to 2025, the ability to adjust, innovate, and deliver clear value will be the foundation of success.
The past year brought a fundamental shift across the manufacturing landscape. Assumptions that once seemed certain, whether about technology, consumer behavior, or regional markets, are no longer holding true.
This change has been particularly prominent in Europe, where many companies are grappling with new realities. While some openly acknowledge these struggles, others face them more quietly.
Companies are being forced to rethink their approaches: how they innovate, adapt, and compete. This period of change has tested manufacturers but has also pushed them to prepare for a stronger, more resilient future.
"If you look back at history, these systematic changes happen. They shock the system, both at a company level and an individual level, but they can also be a great opportunity."
Economic uncertainty defined much of 2024, creating a sense of unpredictability that slowed decision-making and forced companies to rethink their strategies. Month by month, new data emerged, disrupting established plans and highlighting the need for flexibility. Alongside economic instability, the manufacturing industry faced additional hurdles, including leadership changes, organizational restructuring, and market consolidation.
One of the most pressing challenges in 2024 was the significant downturn in the European automotive supply sector. The industry announced 54,000 job cuts, thereby surpassing the total number of job losses during the peak COVID-19 years of 2020 and 2021. High energy prices and inflation eroded Europe’s competitiveness against markets like China and North America. Investment in electric vehicle (EV) projects also saw a sharp decline, with numerous initiatives delayed, scaled back, or canceled. This downturn highlighted the urgent need for manufacturers to maintain investments in technology and modernization.
Mergers and acquisitions further reshaped the competitive landscape in 2024, compelling manufacturers to regroup and rethink their approaches. These disruptions required companies to become more agile, finding new ways to mitigate risks while remaining competitive.
Despite these challenges, moments of clarity emerged. As Sasan Hashemi, CEO and Co-founder of Tset, points out: “Maybe this is good for us. It forces us to come back to being innovators and adjusting to situations faster.”
By embracing innovation and focusing on delivering clear value, companies began laying the groundwork for success in an uncertain landscape.
Looking ahead to 2025, uncertainty will remain a significant challenge. But history shows us that those who focus on delivering clear value will prevail. Sasan Hashemi reflects on lessons from the dot-com bubble as an example of resilience: “During the dot-com bubble, there was a lot of noise, but companies like Google and Amazon, which were delivering clear value at a good price, withstood the shock and came out stronger.”
The same principle applies to today’s manufacturers. Success in 2025 will depend on their ability to:
Clear value always wins, especially during times of uncertainty.
While 2024 has been a year of upheaval, it has also set the stage for a stronger and more resilient industry. The challenges of the past year have pushed companies to adapt, rethink, and innovate. As Sasan Hashemi puts it: “This situation may not be the medicine the client wanted, but it’s the medicine the client needs. I believe that the European manufacturing industry will come out of it stronger.”
By focusing on agility, innovation, and delivering clear value, manufacturers can not only navigate 2025 but emerge as leaders in the industry’s next chapter.
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