Today’s business landscape is fast-moving and unpredictable, characterized by geopolitical tensions, regional conflicts, stuttering economic conditions, and rapid technological change. It’s a potent mix of factors that may keep any CEO up at night.
Despite this, the KPMG 2024 Industrial Manufacturing and Automotive CEO Outlook, based on the views of 240 leaders in the sectors, finds that CEOs are generally optimistic, with their eyes turning toward a growth agenda.
Industrial manufacturing and automotive are dynamic, evolving industries. They make a significant contribution to national economies. They often sit at the heart of local communities, providing employment opportunities in an exciting and varied place to work.
For all these reasons, despite the many pressure points, there is a bold future ahead. CEOs are aware of the hurdles they must negotiate – but they are also confident about the opportunities in front of them.
KPMG 2024 Industrial Manufacturing and Automotive CEO Outlook
Explore how industrial manufacturing and automotive CEOs are navigating through global turbulence by betting big on AI.
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Key findings from the research
74%
of respondents are confident in the growth prospects of the global economy.
More than 70%
of industrial manufacturing (IM) and automotive CEOS believe that generative AI will not fundamentally impact the number of jobs but will require upskilling and existing resources to be redeployed.
95%
of CEOS shared that within three years’ time they predict a full return to office.
30% and 33%
The number one concern for automotive CEOs (30%) is the number of employees retiring coupled with a lack of skilled workers to replace. While IM CEOS identify their number one concern as the knowledge transfer between employees (33%).
74% and 38%
While 74% of IM CEOs believe that their greatest barrier to achieving net zero is the complexity of decarbonizing supply chain, this belief is only shared by 38% of Automotive CEOS that responded.
Optimism tinged with caution sums up the mood amongst industrial manufacturing and automotive CEOs as we enter the latter stages of 2024. Economic conditions have stabilized, and costs have reduced: sustained earnings growth is in CEOs’ sights. Arguably the biggest concern right now is conflict in the Middle East. How that plays out – including impacts on oil and energy prices – could have a significant bearing on future trading conditions.
Jonathon Gill
Global Head of Industrial Manufacturing
KPMG International
I expect to see consolidation and deals in the automotive industry over the coming years, because of some overcapacity in the market but also because OEMs need to acquire new capabilities in areas such as chips and batteries for EVs. This is likely to spawn growing numbers of partnerships and JVs as well as outright acquisitions. It will be a highly active market with considerable degrees of change.
Dr. Andreas Ries
Global Head of Automotive
KPMG International
