Last Update: July 2024
Strenghts
  • High barriers to entry since a lot of investments in technology and capex need to be made in order to keep up with innovation and expansion.
  • Strong long-term growth potential in robotics and process automation. The adoption of Artificial Intelligence (AI) is expected to further expand demand for smart and cutting-edge machinery.
  • Companies with exposure to AI and automation will continue to have pricing power, given the limited offering amid surging demand.
  • Revenue diversification: Very heterogeneous clients and end-markets, serving companies and people in all regions and all kind of industries.
Weaknesses
  • Cyclical sector, with companies are hit hard during recession periods due to falling demand and lower prices.
  • Complex and fragmented supply chain, which makes the sector highly vulnerable to supply disruptions or bottlenecks.
  • Capital-intensive sector, with large investments and R&D expenditures necessary to expand business and offer new products that adapt to new client needs in each end-market.
  • Susceptible to commodity access and prices since metals such as aluminium, copper, steel and nickel are heavily used for machinery building.