Industrial Goods Industry Pulse Check– Insights into Trends, Challenges, and Strategic Outlooks

Industrial Goods Under Pressure: How AI Is Shaping the Next Era of Competitiveness

The Industrial Goods sector faces growing pressure from rising material costs, increasing trade barriers and intensifying global competition. Profit margins continue to decline, and many companies are focusing on cost management, tariff mitigation and process acceleration to stay afloat. Yet these short-term measures alone are not enough to ensure long-term success.

The latest H&Z Pulse Check 2025 (Second Half) reveals a clear shift in priorities. Raw material and supply costs remain the most significant cost drivers, while SG&A expenses are expected to rise further in the coming months. At the same time, Artificial Intelligence has become the defining topic for leaders across the sector. Although digital transformation remains high on the agenda, only 36% of companies have developed a structured GenAI strategy – leaving major opportunities untapped.

Today, AI is most often applied in procurement, R&D and sales & marketing. However, the greatest potential lies elsewhere – in production efficiency, quality monitoring and aftersales & service, where adoption is still limited. Concerns around data security and performance validation continue to hold many organisations back. But for those ready to move from experimentation to execution, AI offers a decisive advantage: faster innovation, better cost control and a future-proof operating model.

The Pulse Check provides exclusive insights into how decision-makers are responding to the current market challenges, what sets high performers apart and where the biggest opportunities for transformation lie. Explore the findings and see how your organisation compares and what it will take to lead in the next era of industrial excellence.