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Report 02 Oct 2026

Manufacturing - Market View - Belgium

Belgium’s manufacturing sector remains under intense economic pressure, yet it is entering a period of strategic redirection. Industrial production remained volatile through H1 2026, economic sentiment fell to its lowest level since late 2025, and insolvencies reached their highest level since 2013. US tariffs continue to redirect exports and investment, while the 2027 SAP ECC deadline, NIS2 enforcement, and the EU’s Omnibus deregulation of sustainability reporting are reshaping IT priorities. Cost efficiency remains the dominant CxO theme (now joined by defense, sovereignty, and AI) as the sector’s new demand engines.

Subsector Overview: Challenges and Strategic Shifts

  • Aerospace & Defense is the standout overperformer, with the €34.8bn 2026–2034 program converting into contracts: the LS² joint venture (John Cockerill, FN Herstal, Thales Belgium), a $3.69bn AMRAAM package pulling 30+ Belgian firms into US supply chains, and sovereign fund investment in the industrial base.
  • Automotive continues its structural decline: Volvo Ghent faces model losses and supplier closures, prompting a federal task force, while the closed Audi Brussels site is earmarked for defense production.
  • Chemicals combine crisis with concentrated capex: Antwerp’s €3.2bn decarbonization program (Antwerp@C, BASF’s e-furnace) proceeds amid capacity closures, while Solvay pivots to rare earths for EV, renewables, and defense value chains.
  • Pharma remains strong but is shifting toward the US, driven by UCB’s roughly $5bn biologics investment and $2.2bn Candid acquisition. Belgian reimbursement reforms took effect in January 2026
  • Food & Beverages remains acquisitive: Puratos’ transformational Dawn Foods deal (closing end-2026) and Lotus Bakeries’ Lembeke expansion create multi-year integration and systems opportunities.
  • Construction is beginning to recover after record bankruptcies, supported by investment in energy infrastructure, battery storage, and housing tax measures.

Across all subsectors, manufacturers are addressing supply chain resilience, cybersecurity, data governance, and decarbonization. AI on governed IT/OT data foundations, S/4HANA migration, M&A integration, and defense digitalization 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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