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Report 21 Jan 2026

Manufacturing - InSight Analysis - Belgium

Belgium’s Manufacturing Sector: Economic Challenges and Subsector Opportunities

Belgium’s manufacturing sector faces intensifying economic challenges yet remains a vital engine of innovation and transformation. With real GDP growth at 1.0% and inflation easing to 2.6% in 2025, manufacturers are under pressure to improve cost efficiency, productivity, and resilience. Industrial production remains volatile, and the country’s rising debt levels (projected to exceed 112% by 2027) add further strain. Tariff risks, demand shifts, and IT cost pressures, highlighted by Umicore’s restructuring, underscore the urgency for digital transformation.

Subsector Overview: Challenges and Strategic Shifts

  • Construction is highly fragmented, with over 140,000 firms and record bankruptcies in June 2025. High material and energy costs are increasing, prompting adoption of platforms like SAP Ariba and automation tools to drive efficiencies.
  • Automotive is shrinking, with Audi Brussels’ exit marking a trend. Yet, EV adoption is surging, with battery electric car registrations up 37% YoY.
  • Biotech is thriving, with market capitalization reaching €66.8 billion in 2024. Firms like UCB and Novartis invest in smart labs, AI, and automation.
  • Chemicals remain strong, with Solvay and Bekaert investing in IT/OT convergence, S/4HANA migration, and cybersecurity.
  • Food & Beverages in Flanders drive 80% of Belgium’s food industry turnover. Firms like Lotus Bakeries and Puratos deploy AI-powered chatbots and digital signage to enhance CX.
  • Aerospace & Defense is poised for growth, backed by €34.8 billion in federal investments through 2034.

Across all subsectors, manufacturers are tackling supply chain optimization, ESG compliance, data governance, and customer experience. Technologies like AI, automation, and advanced analytics are central to navigating economic headwinds and unlocking new business value.

 

Recommended advisory: PAC Leadership Session – Digital Business Models in the Manufacturing Industry

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Sidney Siegertsz

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