Industry insights and figures Other manufacturing

Operating margin
15.3 %
▲ +0.3pp
2017
Companies
160000
2020

Key insights Other manufacturing

Actionable signals from current data
EU27_2020
Average operating result: 15.3% of revenue (2017).
Personnel costs: 22.0% of revenue (2017).
Number of companies: 160,000 (2020).

Sector outlook Other manufacturing

Automated analytical commentary based on the most recent Eurostat figures

Industry overview

The Other manufacturing sector across EU27 average comprises approximately 140,000 enterprises employing about 688,904 people and generating €126.6 bn in net turnover in 2017. The average enterprise size is – employees per firm. This is a useful yardstick when assessing whether your own operation sits within the typical scale band of the sector.

Profitability

With a robust operating margin of 15.3% of revenue in 2017, the sector reports €19.3 bn of gross operating surplus (Eurostat's EBITDA-equivalent, before depreciation). This figure provides the headline benchmark against which an individual operator can sanity-check their own bottom line, values significantly below indicate cost or pricing pressure, those above suggest competitive advantage worth defending.

Cost structure

The Other manufacturing cost mix is reasonably balanced: cost of revenue at 64.4%, personnel at 22.0% and energy at – of turnover. Without a single dominant cost driver, margin management requires attention across the full operating envelope rather than focus on any one line.

Trend & trajectory

Over the period 2011 to 2017 the operating margin moved from 16.2% to 15.3% (-1.0 percentage points), a deteriorating trajectory that warrants attention. Sectors with stable or improving margins tend to reflect successful pass-through of input costs and disciplined capacity management; declining margins typically point to either over-supply or a structural cost squeeze that warrants strategic review.

Costs by category Other manufacturing

Sector average % of revenue
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Cost structure for Other manufacturing in EU27_2020, 2011 to 2017, expressed as percentage of revenue.
Revenue / costs 2011 2012 2013 2014 2015 2016 2017
Total revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Personnel costs (total) 21.5% 21.5% 22.5% 22.6% 22.1% 21.7% 22.0%
Gross wages 16.8% 16.8% 17.5% 17.8% 17.3% 17.0% 17.2%
Social and pension contributions 4.7% 4.7% 4.9% 4.8% 4.8% 4.6% 4.7%
Other costs 62.3% 64.3% 63.4% 62.9% 63.2% 63.4% 62.8%
Gross operating surplus (EBITDA) 16.2% 14.3% 14.2% 14.5% 14.8% 14.9% 15.3%

Source: Eurostat Structural Business Statistics (latest available year).

Operating result over 7 years

Sector average % of revenue
Average
14.9%
Peak
16.21%
2011
Low
14.16%
2013
Latest
15.26%
2017

Cost mix evolution

How costs have shifted as a share of revenue

Cost distribution as % of revenue Other manufacturing (2017)

Recommended next steps

Based on the latest available data for Other manufacturing