On 20 January 2025, Ceemet published its Economic Trends 2024/2025, offering a comprehensive analysis of the Metal, Engineering, and Technology (MET) industries in Europe. Considering the significant challenges MET industries faced in recent years, the report reveals critical insights that highlight both the risks and opportunities facing these essential sectors for 2025.
The report underscores the urgent need for European policymakers and industry leaders to take bold, coordinated action to address declining competitiveness and protect the critical MET sector, which in 2024 covered 50% of the total European industrial employment.
Key findings
1. Investment is the lifeline for competitiveness
High productivity is essential for European industries to compete on the global stage, yet this cannot be achieved without significant public and private investment, something which European industries’ competitors have access to. Despite turbulent years, MET industries demonstrated resilience by consistently increasing research and development (R&D) investment to €182 billion as of 2021, with biggest investors being German, French and Italian industries. The commitment to R&D shows that European companies are determined to ensure their long-term survival and growth and protect their key role in the European employment market. However, geopolitical uncertainties, systemic barriers and regulatory burdens continue to inhibit broader investment.
2. Energy policy is a critical priority
Energy remains a significant challenge for European MET industries, particularly over the past three years due to the war in Ukraine and in the Middle East. Our report highlights the urgent need for a credible energy supply policy at reasonable prices. Without affordable and reliable energy, MET industries will struggle to regain their competitive edge in the global market.
3. A call for realistic industrial strategy
Industrial strategy will become the new mandate’s buzzword, much like strategic autonomy was the previous one’s. But is there a common understanding of what kind of industrial plan European industries, particularly MET ones, need? The data in our report reveals that Europe’s industrial strategy must align with economic realities.
The EU economy should benefit from a modest growth of 0.9% in 2024, 1.2% in 2025 and 1.4% in 2026. However, forecasts are constantly being revised downwards, meaning that without a fundamental improvement in the framework conditions in the EU, growth threatens to continue to disappoint.
Delphine Rudelli, Ceemet’s Director General, highlights: “European industries are at a crossroads. This report lays bare the challenges, but it also presents a roadmap to revitalise our industrial base.”
The MET industries are ready to contribute to and implement a pragmatic plan that promotes investment, reduces administrative burdens, and fosters innovation.
Discover the detailed analysis, insights, and recommendations in the full report.