After a brief period of stabilization in late 2024 and early 2025, the end of the first quarter of 2025 has seen a resurgence in restructuring pressures across European industries, driven in particular by the risk of new trade tariffs and escalating geopolitical tensions. For many sectors, the pressure to adapt has reached a critical point.
BCG’s latest Industry Crisis Radar captures these shifts with sharp clarity. Using AI to analyze over 25,000 public documents, the Radar tracks negative sentiment related to restructuring and future earnings—providing a real-time view of where distress is rising and why.
Q1 2025 data shows significant exposure in Automotive, Chemicals, Construction Materials, Industrials, and Metals. Automotive faces weak global demand, slow EV adoption, and looming U.S. tariffs. Chemicals struggle with oversupply, squeezed margins, and climate compliance costs. Construction materials are impacted by labor shortages and uncertainty in the commercial building sector, while Industrials face overall stagnating demand, intense competition from low-cost countries, and trade-related risks. Metals producers are struggling with pressure on sales prices and surging energy costs.
Yet even in these challenging conditions, forward-looking companies are moving decisively. Industrial players are shifting to “locals for locals” supply chains to improve resilience. Chemical companies are freeing up capital to invest in green technologies. Construction firms are pivoting toward renovation and infrastructure markets.
The Industry Crisis Radar goes beyond analysis—it offers actionable strategies tailored to each sector. From cost transformation and localization to digitalization and sustainability investment, the path forward is clear for those prepared to move early.
2025 is a pivotal year. With restructuring risks on the rise, businesses that act with speed and clarity will be best positioned to navigate volatility and secure long-term advantage.