  Is operating working capital the next challenge?DownloadGSA working capital sector report 2022
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Working capital management in the industrial manufacturing sectorIndustrial manufacturing companies are tying up too much liquidity. In Germany, Austria and Switzerland (the DACH region), companies within this sector have tied up approximately €162 billion as working capital – €35 billion of which they could free up in order to finance investments and growth. |
Record levels of inflation, geopolitical uncertainties and supply chain disruptions mean that industrial companies are facing challenges from multiple angles. Nonetheless, sales revenues have almost returned to pre-crisis level following the 5% slump caused by the pandemic in 2020. Furthermore, with regard to their working capital management (WCM), such companies still possess a large amount of untapped potential. In the industrial manufacturing sector of the DACH region, a total of €35 billion of capital is lying dormant. Companies that succeed in unleashing these funds gain access to a free internal source of capital so that they can finance their growth, investments and optimisation of processes. But where is this potential source of cash hiding? What can industrial manufacturing companies do to improve their working capital management? What improvements could be made in the areas of liabilities, days in inventory and days sales outstanding? Our study provides the answers. |
162 billion of working capital is tied up at industrial manufacturing companies in the DACH region. 35 billion of cash could be freed up by companies to finance investments and growth. 21% is the level to which the net working capital ratio fell in the industrial production sector in 2021. 600 More than 600 industrial manufacturing companies with annual sales exceeding €100 million were analysed as part of our study. |
Most industrial manufacturing companies already possess the funds required to finance their key growth projects. The time has come to set these resources free. |
Download the study exclusively here. |