The Resurrection of Southern Europe

The Resurrection of Southern EuropeIn recent years, Southern Europe has emerged as a beacon of economic resurgence, with countries like Portugal, Greece, and Spain leading the charge. This revitalization stands in contrast to the economic landscape of Northern Europe, with robust growth rates exceeding 5% in 2022, a testament to the region’s resilience and potential. While challenges remain, particularly concerning the sustainability of the growth as well as structural impediments, the trajectory of Southern Europe’s economy offers a promising narrative of growth and transformation.One of the key drivers behind Southern Europe’s economic revival is the composition of its economy, which …

China Outlook for 2024: A Perspective from German Companies

China Outlook for 2024 A Perspective from German CompaniesIn the latest Business Confidence Survey (BCS) conducted by the German Chamber of Commerce in China, findings reveal a complex landscape of opportunities, challenges, and strategic shifts among German businesses operating in China. Conducted between September and October 2023, the survey engaged 566 member companies, offering a comprehensive insight into the German business sentiment within the Chinese market.Despite a slower-than-expected economic recovery with 52% of German companies that have been surveyed stated a decline in their industry, China’s importance to the German economy remains undiminished. As Germany’s most important trading partner for …

Navigating the Skies: An Overview of the Thriving China Aviation Industry

Navigating the Skies: An Overview of the Thriving China Aviation Industry In recent decades, the China aviation industry has soared to new heights, transforming itself into a global powerhouse. Marked by remarkable growth, strategic investments, and technological advancements, China’s aviation sector has become a key player in the global aerospace arena. This overview will delve into the important specifications of the China aviation industry, exploring key factors that have fuelled its rise and examining the industry’s impact on both domestic and international fronts.Aviation Industry Clusters in China: A Symphony of Innovation The aviation industry in China has witnessed significant growth …

Shared Service Center – Rising cost pressure and drive for automation

Shared Service Center – Rising cost pressure and drive for automationShared Service Center established themselves as a valuable growth opportunity for multinational companies by reducing personnel expenses as well as embracing standardization and harmonization within complex global company structures. However, the Covid-19-pandemic, rising costs due to high inflation rates and more advanced automation solutions shuffled the playing field and its environmental conditions. For instance, home office demands have become common practice for Shared Service Center (SSC) in Central and Eastern European (CEE) countries.Poland stands out as the largest player for SSC in CEE commanding a 69% market share, with high …

Charting China’s Course: A Journey Towards Openness

Charting China’s Course: A Journey Towards OpennessIn 2023, China witnessed a commendable growth in its Gross Domestic Product (GDP), achieving a 5.2% expansion for the year. This growth not only aligned with the government’s annual target but also showcased a robust performance, especially in the fourth quarter, where the year-on-year GDP surged to 5.3%, surpassing the 4.9% recorded in the third quarter. Despite these positive indicators, the Chinese government is gearing up to provide additional support to its economy and trade in 2024. In this EAC Executive Briefing, we will delve into the significant developments that unfolded in the latter …

The Future: India’s Construction Equipment Industry thrives on Sustainability and Innovation Trends

Building the Future: India’s Construction Equipment Industry thrives on Sustainability and Innovation TrendsThe construction equipment industry in India is about to undergo a significant transformation. An expanding economy, rising urbanization, and large-scale infrastructure projects have all contributed to an increase in the need for construction equipment. The industry recorded the sales of 107 thsd units in FY’23 and is expected to grow at 7% CAGR during FY23-30. It is world’s 3rd largest market and is currently valued at 6.1 bln EUR with earthmoving equipment segment being the majority contributor at 72% share.Key Growth Drivers: Infrastructure Development Projects: Large-scale government initiatives …

Outsourcing of non-core activities to developing Innovation hubs

Outsourcing of non-core activities to developing Innovation hubs: The new Shared Services concept in practiceTo focus on core business competencies without impeding the flow of non-core activities while achieving cost efficiencies, businesses have been setting up shared services centers (SSCs) since 1980s but over the years, the model has evolved to adapt better to changing business requirements. From Shared Services Centers (SSC) to Global Competence Centers (GCC) and Global Business Services (GBS), service delivery model encompassing outsourcing, captive shared services as well as centers of excellence (COEs) for serving various business units have been the guiding pillars to offer centralized expertise …

Indian Biodiesel Industry Outlook

Indian Biodiesel Industry Outlook: Navigating Growth, Policy Dynamics, and Investment OpportunitiesIndia is the 3rd largest crude oil consuming nation globally accounting for 262 mio tons in FY 2023 with 89% demand met by imports from Russia, Iraq, and Saudi Arabia. High speed diesel consumption is estimated at 39.3 mio tons in FY 2023 of which ~87% is used by transport industry and rest 13% by industry, agriculture, and power generation. Diesel consumption is expected to reach ~105 mio tons by FY 2030 mainly driven by increased industrialization, urbanization, infrastructure development, and rising vehicle sales.To reduce dependency on imports and meet …

Agricultural Mechanization (beyond tractors) – focusing on the Indian Agri-Machinery Industry

Agricultural Mechanization (beyond tractors) – focusing on the Indian Agri-Machinery IndustryIndia, with its vast and diverse agricultural practices, plays a pivotal role in global food production. It is the second-largest producer of rice, wheat, sugarcane, cotton, and groundnuts, as well as the second-largest fruit and vegetable producer. The farm equipment industry, a cornerstone of this sector, which was traditionally dominated by tractors, is undergoing a transformative phase fueled by technological advancements, localization efforts, policy shifts, and changing consumer preferences.EAC has observed key trends shaping today’s Indian agri-machinery industry. The key trends are: Small agri-machinery segment transitioning towards localisation: The small …

Electrifying India: Accelerating the Passenger Electric Vehicle Revolution

Electrifying India: Accelerating the Passenger Electric Vehicle RevolutionBy 2030, India will emerge as the 2nd largest manufacturer of passenger electric vehicles in APAC region following China with a surge of +74% in the vehicle production volume.India is currently amongst the prominent hubs for automotive manufacturing across globe, however, the Indian EV industry is still in its early stages of development and is expected to exhibit significant growth over the next decade. By 2030, India will emerge as the 2nd largest manufacturer of passenger electric vehicles in APAC region following China with a surge of +74% in the vehicle production volume. …

Indian Chemical Distribution Sector: Imminent Growth Opportunity

Indian Chemical Distribution Sector: Imminent Growth OpportunityThe fast-growing Indian chemical industry, projected to reach 288 bln EUR by 2025 (163 bln EUR in 2019), boasts the presence of both international leaders and local champions. The industry is experiencing rapid growth in both domestic and export trade. To keep pace with increasing demand while ensuring cost-efficient operations, it requires a specialized, safer, more innovative, and flexible transport system for faster and more efficient transportation. Chemical distribution – Overview The Indian chemical distribution sector is primarily driven by the growth of the chemical industry and government initiatives that promote local manufacturing. It …

Production Linked Incentives (PLI) of India – Reviewing the Impact

Production Linked Incentives (PLI) of India – Reviewing the ImpactThe Indian government’s Production Linked Incentive (PLI) scheme is a performance-based incentive scheme. It rewards companies for increasing domestic sales of their manufactured goods. The overall aim of the scheme is to strengthen the manu-facturing sector and reduce dependence on imports. Its objectives include promoting the „Make in India“ initiative, attracting foreign manufacturers to set up production in India, and motivating domestic manufacturers to expand production and exports.Launched in March 2020, the PLI scheme initially targeted sectors heavily dependent on imports, such as mobile manufacturing, electrical components, critical pharmaceutical materials and …