Navigating Competitiveness

Closing the European competitiveness gap examined the cost and decarbonisation pressures facing European industry. The Antwerp Declaration Monitoring Report tracked progress on the conditions needed for industry to compete. This report moves from the wider challenge to decisions individual companies can assess and act on.

Navigating Competitiveness sets out four interconnected levers: capital investment, operational excellence, innovation and growth, and supply chain resilience. Using illustrative analyses and company case studies, it shows how energy-intensive manufacturers and the businesses that supply them are evaluating investment options, benchmarking operations, assessing emerging markets and identifying critical dependencies.

The report also considers how European policy developments may affect these choices. Its central message is that policy matters, but companies cannot base investment decisions on policy expectations alone. They need a clear view of their costs, capabilities and competitive position, and a way to test decisions against different market and policy conditions.

For industrial leaders, the report offers a framework for asking where action could have the greatest impact, which assumptions need testing and which risks require attention now.

Europe's industrial competitiveness is at a crossroads 

The competitive landscape for European industry is changing rapidly. Energy-intensive sectors are facing a combination of high energy prices, infrastructure constraints, growing regulatory complexity, and increasing dependence on imported critical raw materials. At the same time, Europe is introducing new measures designed to strengthen industrial competitiveness, including reforms to the Emissions Trading System (ETS), the Carbon Border Adjustment Mechanism (CBAM), the Critical Raw Materials Act (CRMA), the European Grids Package, and the proposed Industrial Accelerator Act.

For business leaders, the challenge is no longer understanding that change is happening. The challenge is determining which actions to take today to remain competitive tomorrow.

Four strategic levers for industrial competitiveness 

The report identifies four interconnected levers that will shape Europe's industrial transformation and help organisations strengthen their competitive position. 

1. Capital investments Companies need to make informed investment decisions in electrification, energy storage, carbon capture, hydrogen, and other low-carbon technologies. Scenario modelling and strategic partnerships can help organisations identify no-regret investments and reduce long-term risks.  
2. Operational excellence Digitalisation, automation, AI, and resource efficiency are becoming essential drivers of productivity and resilience. Leading organisations are leveraging operational benchmarking and data-driven decision-making to optimise performance and manage costs.  
3. Innovation and growth Future leaders will be those that can identify emerging market opportunities, accelerate the deployment of low-carbon technologies, and balance investments across near-term and breakthrough innovations.  
4. Supply chain resilience Access to energy and critical materials has become a strategic priority. Companies are strengthening resilience through diversified sourcing, advanced analytics, improved traceability, and stronger value-chain partnerships. 

Turning strategy into action 

Industrial competitiveness depends on more than a single investment or initiative. The report presents a strategic framework that enables organisations to assess their position across the four competitiveness levers, benchmark performance against peers, and identify opportunities for improvement.  

Through case studies from energy-intensive industries, the report illustrates how leading organisations are using scenario modelling, competitiveness assessments, digital tools, market intelligence, and ecosystem partnerships to navigate uncertainty and unlock growth opportunities.