1、Confidenceof ValueConfidenceResilience,The State of theIndustrial Goods Sector 2023And a shiftof ValueResilience,ConfidenceEurope EditionTABLE OFCONTENTSIntroductionKey FindingsOverview of Sector DevelopmentA Cocktail of ChallengesNew OpportunitiesExcursus:GeopoliticsSector Outlook345202732423Dear R

2、eader,Welcome to our inaugural report on the State of the Industrial Goods Sector.With this report,we take stock of where the European industrial goods sector stands,with a strong focus on value creation and value migration.We look at the development of the fundamental drivers of value:Revenue growt

3、h,profitability,capital intensity and in our view increasingly so sustainability.The European industrial goods sector has not only rebounded remarkably fast from the coronavirus pandemic,it has also absorbed shocks like the Russia-Ukraine war and the subsequent disruptions and inflation mostly well.

4、Furthermore,it has certainly surprising to some gained significantly in value over the last 10 years(and our IGO Europe index beats the MSCI Europe by a margin).But as we start to dissect the sector,large differences and shifts in value become apparent:Between subsectors,between business archetypes,

5、but also vast spreads of value creation between companies that play in the same field.This underscores the importance of pursuing an appropriate business model and achieving operational excellence,which can often be more significant than the specific market in which one operates.We also surveyed ind

6、ustry leaders and take a closer look at the challenges(such as inflation,supply risks,recession risk,and labor shortages)and opportunities(digital and AI,new markets,green products and solutions)that they ranked highest.Of particular interest in this report is the in-depth geopolitical section.In ou