Machine tool manufacturing is a €17bn industry in Germany and one of the most important segments of mechanical engineering. Although machine tool manufacturing (MTM) is critical to the competitiveness of engineering and manufacturing in Germany, there are structural risks that will affect MTM businesses in the years ahead.

The accelerating transformation to e-mobility and other macro trends in the automotive industry concern leaders seeking to understand the consequences of MTM’s exposure to this sector. The long-term strength of China as an export destination is another potential concern with its effects becoming more and more visible. In the months and years ahead MTM businesses must think
carefully about key financial and operational metrics including capital allocation, total capacity, footprint, headcount and more.

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