German Industry at a Turning Point

Structural challenges and global competition demand bold strategies

Germany Industrial Industrie Crisis
12.11.2025 | Article

Germany’s industrial sector, long regarded as Europe’s economic powerhouse, is under mounting pressure. The British daily newspaper Financial Times examined the depth of the current downturn, describing how structural challenges, global competition, and geopolitical shifts are testing even the strongest industrial players. 

In the article, Dirk Pfitzer, Senior Partner at Porsche Consulting, emphasizes that the current slump is not just a temporary dip but signals a structural transformation that demands bold strategic responses from the industry. 

A recent Porsche Consulting analysis shows that manufacturers can unlock up to 35 percent in factory cost savings by combining operational excellence, digital tools, and network optimization. Successful programs focus on both structure and execution, turning short-term relief into long-term competitiveness. 

Read the Financial Times article (Paywall) to learn more about the current challenges in German industry.

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