Executives face unprecedented challenges
High dependency on energy imports
19% of European respondents cited rising energy costs as the top challenge to margins across industries.
91% of European companies will miss meeting their own net-zero targets based on current trends.
Regional talent gap
The EU’s quarterly job vacancy rate of all available jobs in Q3 2022 is 2.9%, only slightly down from 3% in Q2 (the highest rate since 2013).
76% of European executives anticipate increasing regional divergences and fragmentation of the world economy in the next 12 months.
Some companies may consider relocating operations to avoid costs and to gain subsidies elsewhere.
Changing consumer behavior
60% of consumers say their priorities keep changing due to everything going on in the world.5
European growth is comparatively low
Exploring European strengths and weaknesses
The role of technology in reinvention
Unpacking Europe’s technology deficit
81% have increased implementation vs. 71% globally; 65% in North America
AI and automation
75% vs. 66% globally; 62% in North America
76% vs. 69% globally; 63% in North America 8
Europe needs to shift from squeezing to investing
On average, European executives report that 16.9% of global revenues are invested in transformation initiatives like R&D, new technologies and joint ventures vs. 18.8% in China and 20% in US.9
If European companies had invested in R&D at the same rate as North American companies, this would have equated to an additional $388 billion in investment over the past five years.10
European businesses commit to Total Enterprise Reinvention