Germany‘s consumer goods industry has retained the top position in the country’s competitiveness index, although its score has fallen compared with 2024, according to new data from Alvarez & Marsal (A&M) and the German Society for Management Research (DGMF).
The consumer goods sector recorded an index score of eight points, compared with 13 points in 2024, however it still outperformed the other industries included in the study.
The findings, which measure companies’ assessments of their competitive position on a scale from -100 to +100, were based on interviews with 246 decision-makers across the automotive, mechanical engineering, chemical and pharmaceutical, and consumer goods industries.
Cost pressures
According to A&M, cost pressures have ‘gained massive importance’ for consumer goods businesses. Some 89% of companies surveyed said their cost position was important to driving competitiveness, an increase of 15 percentage points on the previous year.
Speed was also identified as an important competitive factor, with 82% of respondents rating it of ‘high’ or ‘very high’ importance. A&M highlighted shorter product cycles, changing consumer habits and volatile demand as factors requiring faster decision-making and more flexible business processes.
Elsewhere, artificial intelligence was recognised as ‘strategically relevant’ by 74% of companies, however less than half (47%) said they were using AI-based demand and inventory forecasting either fully or partially.
Lastly, the study found that traditional cost-reduction measures continue to dominate, with 80% of firms saying that they already rely on strategic procurement and supplier management.
Operational efficiency
‘The results clearly show that traditional cost-cutting programmes alone are not enough,’ A&M said in a statement. ‘What will be crucial is how companies combine operational efficiency, speed, and data-driven decision-making.
‘In particular, there is a significant gap between the high strategic importance of artificial intelligence and its actual use.’
The 2026 German Industry Competitiveness Index is the third annual edition published by A&M and DGMF. Read more here.
