European manufacturers are under significant cost pressure.
For German industry in particular, labour costs are one of the most visible challenges. According to the German Federal Statistical Office, manufacturing labour costs in Germany reached €49.50 per hour in 2025, compared with an EU average of €35.00.
That is a difference of more than 40%.
European manufacturers face a difficult balance.
Production costs need to remain competitive. Capacity needs to become more flexible. Labour-intensive processes need to be organized efficiently.
At the same time, manufacturers do not want to lose control over their products, quality standards or production know-how.
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