The overall performance of the manufacturing industry

In 2023, EU manufacturing production decreased by 1.2% compared to 2022. According to the European Bureau of Statistics, this contraction occurred after two years of continued growth. In 2021, EU manufacturing grew by 8.5% compared to 2020; in 2022 it grew by 0.4% compared to 2021. However, despite a decline in production, EU manufacturing sales increased by 1.6% from €58.950 billion in 2022 to €59.920 billion in 2023.

Main areas of decline

Chemical products

The decline in chemical production was most notable, with a decline of 15% in 2023, with the value of chemical production falling from €542 billion in 2022 to €461 billion.

Basic metals and metal products

The production of basic metals and metal products also saw a marked decline, falling by 8%. Its output value decreased from €888 billion in 2022 to €816 billion in 2023. Metal products, as an important component of the manufacturing industry, its decline directly affects the overall production level.

Rubber, plastic and other non-metallic mineral processing products

Production of rubber, plastics and other non-metallic mineral processing products decreased by 6% from €4950 billion in 2022 to €467 billion. This decline reflects the widespread weakening of market demand and the impact of raw material price fluctuations on production.

Main areas of growth

Automotive industry

In contrast to the decline in the above sectors, the automotive industry showed outstanding performance in 2023 with a 20% increase in output value, rising from €776 billion in 2022 to €934 billion in 2023.

Machinery and Equipment

The output value of machinery and equipment grew by 8%, from €556 billion in 2022 to €60 billion.This growth reflects the widespread application of industrial automation and intelligent manufacturing technologies, as well as the continuing demand for efficient production equipment in the global market.

Food, Drinks and Tobacco

The food, beverage and tobacco industries also achieved 5% growth, increasing their output value from €1006 billion in 2022 to €1056 billion in 2023.The industry has shown a steady growth momentum as global demand for high-quality food and beverages increases and consumer markets expand.

Analysis of Long-Term Trends

Volatility from 2013 to 2019

Looking back at the data of the past decade, the EU manufacturing industry experienced a decline from 2013 to 2014 and thenined a slightly volatile growth trend until 2019.

The collapse of 2020

In 2020, the related restrictions brought about by the New Corona epidemic had a huge impact on the manufacturing industry, leading to a real collapse of production. Global supply chain interruptions, factory shutdowns and a sharp decline in market demand were all major causes of this collapse.

Recovery in 2021 and 2022

The EU manufacturing industry has gradually recovered in 2021 and 2022, showing signs of positive growth, following a slump in 2020, thanks to the gradual recovery of the global economy, the warming of market demand and the rapid adjustment and adaptability of the manufacturing industry.

The future prospect

Despite a 1.2 percent drop in manufacturing output in 2023, in the long-term trend, the EU manufacturing industry still has huge potential in terms of technological innovation and market diversification. In the future, with the further stabilization of the global economic situation, manufacturing industry is expected to continue to recover and stable growth.

To address the current challenges, the EU needs to further strengthen its support for industrial policy and drive transformation and upgrading in manufacturing, in the areas of green energy, intelligent manufacturing and digitalization, investing and developing, while enhancing international cooperation and safeguarding the stability of the global supply chain is also a key step in promoting the sustainable development of manufacturing.