Lünendonk® Industry Performance Study 2026
From Process Optimization to Transformation: Strategies for German Industry
German industry has achieved significant progress in recent years by streamlining processes, reducing costs, and restoring operational stability. However, as the 2026 Lünendonk® Industry Performance Study reveals, the major transformation is still ahead. By 2030, growth, AI at scale, resilient supply chains, and Germany as an industrial location will become key strategic priorities.
This raises two fundamental questions: Have companies stabilized their operations without fundamentally evolving their business models? And after years of cost-cutting, when will they shift their focus to genuine growth and investment programs? This is precisely where the study provides valuable insights. It highlights the current state of German industry and identifies the key levers that will determine its future competitiveness.
Leadership perspectives across industries
The study illustrates how industrial decision-makers from companies in Germany, Austria, and Switzerland are responding to cost pressure, rising energy prices, and global uncertainties. It is based on interviews with 80 executives from across the DACH region conducted in Q1 and Q2 of 2026. The participating companies represent a broad range of industries, including automotive, machinery and plant engineering, chemicals, life sciences, and pharmaceuticals. All respondents operate manufacturing sites in Germany, with many also maintaining production facilities across Europe and other regions worldwide.
The findings provide valuable insights into how industrial companies are strengthening operational performance today and which strategic levers will drive future growth. The study focuses on:
- DIGITALIZATION AND AI IN MANUFACTURING
- SUPPLY CHAIN RESILIENCE 2026
- ORGANIZATION, CAPABILITIES & CHANGE
- THE COMPETITIVENESS OF GERMANY AS AN INDUSTRIAL LOCATION
The current state of german industry: Results of efficiency programs
The study findings support the following hypothesis: While efficiency programs and lean management have improved the performance of many companies, they have rarely led to profound transformation. Process optimization and lean management remain the most widely implemented initiatives, followed by automation and digitalization. However, digitalization often remains fragmented, leaving significant potential untapped.
The study findings highlight the key challenges facing German industry: persistent pressure to improve efficiency, the difficulty of scaling digital solutions, and the growing importance of organizational transformation and Germany as an industrial location as critical factors for future success.
German industry at a strategic tipping point: Key findings from the 2026 Lünendonk® Industry Performance Study
of the surveyed companies consider further cost reductions and efficiency improvements necessary.
see their own organization, rather than technology, as the biggest barrier to transformation.
believe that Germany’s disadvantages as an industrial location can be at least partially offset.
Strategic levers for growth and performance
Companies are pursuing growth by expanding into new markets, attracting new customers, and driving innovation. Entering new market segments and customer groups is identified as the primary growth driver, followed by the scaling of digitalization and AI. When it comes to efficiency and operational performance, increasing productivity in manufacturing stands out as the clear priority, with 83% of respondents identifying it as the most important lever.
Outlook 2030: Key Priorities from the 2026 Lünendonk® Industry Performance Study
Operational performance provides the foundation for competitiveness and growth.
The decisive factor is whether AI and digital solutions can be successfully transferred into day-to-day operations.
Markets, portfolios, and investments must be managed in an integrated manner.
