Upcoming Trade Shows in Germany for Industrial Supplies, Subcontracting

The industrial supplies and subcontracting industry in Germany is widely spread out and highly diversified, so it’s impossible to gain a complete overview of its state, but we can see different aspects of it across the country’s economic landscape. For instance, let’s look at its Industrial Manufacturing and Automotive (IM&A) industry, which faced high-interest rates, geopolitical tensions, and rising costs in labor, materials, and energy in 2023. Yes, the period appears to be not all too positive, but still deal activity in the sector saw a 15% increase compared to 2022, though it remained below the record highs of 2021. What we’re seeing are the early signs of an industry that is slowly adapting to new economic realities. In 2023, the majority of mergers and acquisitions (M&A) in the IM&A sector focused on small- and mid-sized deals. Corporate buyers led the way, accounting for 53% of all transactions, with a notable 56% of these corporate buyers being based in Germany. Financial investors, similarly, were predominantly German, making up 53% of their category. This, of course, came with some shakeup in Germany’s industrial supplies and subcontracting industry as industrial manufacturing and the business services sector were particularly active. The industrial manufacturing sector alone saw a 35% increase in deal activity from the previous year. In contrast, the automotive sector faced a downturn, experiencing a 7% decline in deal activity. Germany’s economy is grappling with labor shortages, which drive up labor costs and intensify the competition for talent. Companies are not only seeking employees with current relevant skills but also those who can help navigate future industry transformations. To address these labor challenges, firms are increasingly turning to M&A as a strategic tool to acquire necessary talent and capabilities. Another way to overcome this challenge has been to invest in automation and AI.