Machinery and Equipment
Elevated backlogs have provided production stability, but new orders and revenue will continue to be threatened by the economic uncertainties
Last update – July 2024
Sector rating

MEDIUM RISK FOR ENTERPRISES
Strengths & weaknesses

- 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 long-term growth potential in robotics and process automation. The adoption of Artificial Intelligence (AI) is expected to further expand demand for smart and cutting-edge machinery.
- Companies with exposure to AI and automation will continue to have pricing power, given the limited offering amid surging demand.
- 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 and lower prices.
- Complex and fragmented supply chain, which makes the sector highly vulnerable to supply disruptions or bottlenecks.
- 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.
Sector overview
Subsectors
Contact
Maria Latorre
Allianz Trade
Allianz Trade