Nine out of ten manufacturing companies currently have at least one transformation or restructuring program underway or planned for the next twelve months. It is not just corporations that are transforming on a grand scale—SMEs are also following suit, as our study shows.
A closer look at the anticipated developments in 2025 regarding turnover, EBIT, and personnel reveals that medium-sized companies — particularly those with annual turnovers between 500 million and one billion euros or with 1,000 to 5,000 employees — are pessimistic about the upcoming year. Forecasts are especially negative in southern Germany, where many medium-sized manufacturers, such as those in the mechanical engineering and automotive industries, are located.
Many companies are already facing unavoidable deep cuts. From salary reductions and job cuts to relocations—the outlook for 2025 encompasses all these measures. The automotive industry is particularly affected: 68% of manufacturers and suppliers indicate they will implement layoffs, including socially responsible terminations, within the next twelve months. Over 60% of companies plan to relocate, and more than 70% intend to reduce bonuses and flexible salary components.
On average, companies are planning to cut 16% of their costs. They identify the greatest savings potential in production costs, including direct personnel costs (56%), followed by material costs (54%), and finally personnel costs in administration (45%). These savings are primarily expected to be achieved through automation and productivity enhancements.