Keywords: Global Economy, Sluggish Financial Markets, Manufacturing Industries, Process, Discrete, Automation, Hybrid Manufacturing.
Following the recession of the late 2000s, the global economy entered a phase in which sluggish financial markets and an increasingly less dynamic real economy created an uncertain situation for development. Companies are reluctant to make major investments and strategic decisions tend to get postponed. ARC's latest capital expenditure index reflects the development in the aftermath of the crisis, looks into specific industries, and provides a deeper look in the profitability development of different industries.
The development in different industries before, during, and after the crisis varied significantly. Discrete industries, for example, remained rather flat from 2006 to 2011, contracted strongly in 2009, and then recovered to pre-crisis levels.
Many considered the hybrid manufacturing industries as boom industries in the crisis year. However, looking more closely, it becomes clear that, rather than boom industries, they just represented a safe haven. Investments in the hybrid industries lagged behind the discrete investments starting in the early 2000s and still are not performing significantly better than discrete markets.
The world is hungry for resources and the metals & mining and oil & gas sectors are the main drivers for the index for investment in the process industries. Utilities also increased their investments significantly, contributing to the fact that after remaining sluggish until the mid-2000s, process industry investments have grown strongly.
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