Looking to the future: What does the vehicle and supplier industry need to let go of in order to remain competitive?

28.04.2026

We live in a world of increasingly rapid succession of challenges and crises and, as an industrialized nation, we are under great pressure to compete with other countries and companies. Internationally active corporations can respond by relocating to locations with an attractive environment, whereas small and medium-sized companies are generally unable to do so as part of a differentiated supplier network. Nevertheless, we also have a lot to offer as an industrialized nation: We can rely on our strengths, unique positions and values. And not only trust, but also build on them. Both as a company and as an economy. The vehicle and supplier industry should take advantage of this.

Where does the vehicle and supplier industry stand in Bavaria?

Around 10% of companies in the vehicle and supplier industry in Bavaria are active in business areas that are threatened by the transformation. Compared to the entire vehicle and supplier industry in Bavaria, these are mainly large companies and medium-sized companies with at least 250 employees. There are around 450,000 employees in the vehicle and supplier industry across Bavaria. Around 29% of these are SMEs and medium-sized companies with up to 749 employees. At around 196,000, the number of employees (44%) at companies in fields of opportunity - which are predominantly found in materials, vehicle construction and production - slightly outweighs the number of companies in threatened business areas at around 179,000 (40%). There are clear differences between the regions in Bavaria in terms of the companies located and the respective product portfolios as well as the employment structure and activities in fields of opportunity and in the threatened business sector.

Strategy of "last man standing"

Many companies react and act by optimizing costs, reducing production and personnel at the location and relocating activities abroad. Some companies pursue a "last man standing" strategy, whether planned or unplanned, and manufacture products for as long as they can and refrain from developing new products, services or business models in a forward-looking manner. From a business perspective, this may be imperative, perhaps even without alternative.
From an economic perspective, however, this is questionable. If, as has been the case for decades, products are not first developed and produced domestically and only later relocated abroad, but are instead developed directly abroad and also produced there from the outset, an economy - such as that of Germany and Bavaria in particular - loses value creation, industrial jobs and innovation dynamics and, above all, future prospects.
Change has always existed, it is said. Even Joseph Schumpeter described "creative destruction" as the engine of economic development at the beginning of the 20th century. So is everything normal? What if not? What if the previous patterns of thought and behavior as well as an innovation system for society as a whole are no longer suitable for new and diverse challenges? This does not mean that anyone has done anything wrong, it just means that companies, politicians and society as a whole should keep a critical eye on things and be open to new ideas.

Creating space for new things

How can a company remain strong, maintain or even increase its value, how can it develop its own strengths, remain attractive to the creative minds in the company and how can it maintain industrial peace in turbulent times?
As a company, it is fundamentally important to consciously formulate perspectives, potentials and unique positions. This can also mean parting with technologies, markets or products if this creates space for "new things" - new things primarily mean introducing technologies more quickly and using them consistently. In a working world with automated production and AI-supported processes, people remain central. It is therefore important to consciously involve employees, utilize their experience and knowledge and prepare them for future tasks. In this way, the strengths and potential of the company can be used and developed in a targeted manner.

A one-sided focus on technology and engineering is not enough to increase the speed of innovation and transformation processes. Instead, companies should utilize the knowledge of their employees and involve them through company participation or even co-determination formats. A conscious and upgrading design of the work systems increases the company's innovation dynamics as well as its internal and social acceptance and attractiveness.
The end result of successful transformation processes is a stable and profitable company that has short time-to-market cycles thanks to high innovation dynamics. Thanks to agile and modern structures, it is resilient to market upheavals, with the workforce playing a substantial role thanks to independent and qualified decisions. The company is attractive to applicants and is characterized by a high level of identification of the workforce with the company.

Weber GmbH in Aschaffenburg is an impressive example of a conscious reorientation. Since its foundation in 1979, the medium-sized company has consistently expanded its range of activities and offered automation solutions, engineering and testing, for example. A strong focus was the automotive industry. In the course of the far-reaching transformation of this industry, Weber GmbH and Hensel Recycling GmbH have entered into a partnership with the aim of using the expertise developed in the automotive industry for the circular economy and precious metal recycling.

Target image for the vehicle and supplier industry in Bavaria in 2035

As part of the transform.by project, which is funded by the Federal Ministry for Economic Affairs and Energy to support the Bavarian vehicle and supplier industry, a clear target image for SMEs has emerged from intensive participation processes:
This shows, from the perspective of 2035, what has been achieved and how the project's findings and activities have contributed to this. It continues to serve as a guide for further developing specific offerings, designing integrated solutions and initiating new, forward-looking projects.

Download the target picture for the automotive and supplier industry in Bavaria in 2035 now free of charge

You can find further studies, strategy and planning documents as part of transform.by under the following link