Metals volatility and recession concerns threaten the short-term outlook

Last update – September 2023
Business environment risk
Political risk
Commercial risk
  • High barriers to entry since a lot of investments in technology and capex need to be made in order to keep up with innovation and expansion.
  • Strong growth potential in robotics and process automation. Benefits from ongoing industrial innovation and automation boom (including AI). All sectors are looking for efficiencies, and being able to bring products to the market that meet these expectations represents a great opportunity for gaining market share.
  • Revenue diversification: Very heterogeneous clients and end-markets, serving companies and people in all regions and all kind of industries.
  • Cyclical sector, with companies are hit hard during recession periods due to falling demand.
  • Complex and fragmented supply chain, which makes the sector vulnerable to periods of supply constraints, as seen during the 2020 lockdowns.
  • Capital-intensive sector, with large investments and R&D expenditures necessary to expand business and offer new products that adapt to new client needs in each end-market.
  • Susceptible to commodity access and prices since metals such as aluminium, copper, steel and nickel are heavily used for machinery building.
Maria Latorre
Allianz Trade