This sector is the engine of the physical economy, focused on the transformation of raw materials into finished and semi-finished goods for both businesses and consumers. Automotive, industrial and manufacturing sectors include:
- Capital goods such as aerospace and defence equipment, electrical equipment, and machinery.
- Automotive: Manufacturers of automobiles, heavy-duty vehicles, and their related components.
- Technology Hardware: Manufacturers of communications equipment, computers, consumer electronics, and semiconductors.
- Building & Packaging Products: Producers of construction materials, glass, and packaging products.
- Other Manufacturing: Includes producers of household durable goods, leisure products, textiles, and apparel.
Predicting the future of the manufacturing industry
Taking Charge of Change in Manufacturing & Industrials
Manufacturing remains critically important to both the developing and the advanced world. In many countries the sector is in a state of transition: growing in emerging economies; shrinking but becoming more productive in advanced economies. Some markets compete on cost, others on technology and innovation. Lean manufacturing techniques which eliminate waste and improve quality are of key focus.
The next 12-18 months will test the agility of middle-market manufacturing and industrial firms. As AI's presence in the manufacturing industry grows, those that institutionalise fast-cycle machine-learning, secure flexible financing, and proactively harden supply chains against geopolitical and ESG shocks will widen the performance gap as credit conditions tighten and policy fragmentation deepens. Conversely, firms that delay rare-earth risk mitigation, underestimate CBAM compliance complexity, or rely on legacy logistics partners lacking AI visibility are likely to suffer margin erosion and market-share loss.
Automotive and manufacturing industry analysis – sector by sector
Instilling Confidence in a World of Change
At RSM, our automotive and manufacturing industry services help clients overcome new challenges, embrace change and adapt to thrive. By working together, creating deep insights, combining world-class technology and real-world experience, we deliver understanding that’s unmatched, and confidence that builds. For a changing world. For the future. For all.