CHARACTERISTICS

Technically demanding, rich in variants, dependent on a few key accounts

Manufacturers in electrical engineering and sensor technology live from their technical edge. Whether this turns into earnings, however, is decided in costing, in production and in the customer portfolio.

Many variants, few earners. Customer-specific versions expand the range. Often a few product families carry the earnings while others quietly consume them.

Technology does not always beat price. Customers only pay for what they need. Over-engineered products lose out to cheaper suppliers.

Few customers, great influence. A large share of revenue depends on a few customers. If supplier status is lost there, a noticeable part of the business quickly disappears.

Delivery capability depends on components. Electronic components have long replenishment times. Buffers built up during the shortage years often tie up more capital today than necessary.

Market situation · As of November 2026

Orders are picking up, SME earnings are not yet

The German electrical and digital industry booked 13.1 per cent more orders from January to August 2026 than in the previous year. Revenue rose by 6.2 per cent in nominal terms to EUR 153.9 billion, but production only by 1.1 per cent in real terms. A large part of the growth therefore comes from prices, not volume. In sensor and measurement technology, revenue in the second quarter was 14 per cent above the previous year, but orders fell slightly compared with the previous quarter.

In Switzerland, the tech industry grew in the first half of 2026, driven almost exclusively by large companies. SME revenues fell by 3.8 per cent, and at 81.1 per cent, capacity utilisation was below the long-term average of 85.6 per cent.

The recovery is reaching SMEs through orders and prices, but not yet through volume and margin. Those who know now with which products and customers they make money can turn the recovery into earnings.

Sources: ZVEI, press release of 08.10.2026; AMA Association for Sensors and Measurement, 18.09.2026; Swissmem, press release of 24.08.2026.

+13.1%

Order intake, electrical industry Germany, Jan.–Aug. 2026

+1.1%

Real production, same period

0.98

Book-to-bill, sensor and measurement technology, Q2 2026

−3.8%

Revenue of Swiss tech SMEs, first half of 2026

+5.5%

Swiss exports of electrical goods, first half of 2026

81.1%

Capacity utilisation in Switzerland, average 85.6%

Early warning signals

How to recognise that action is needed

A weak quarter can have one-off causes. It becomes critical when patterns repeat. The following structural signals show that the cause lies within the company itself – in structures and processes – long before it becomes visible in the income statement.

  • Nobody knows exactly what the company makes money with. A product costing that is comparable across all plants is missing.
  • Development projects start without a business case. Nobody checks in advance whether a product can be manufactured profitably at the market price.
  • New variants are added, old ones never go. There is no rule for when a product is discontinued.
  • Sales lives off a few key accounts. New customers and applications are not won systematically.
  • Deviations in production only show up in the monthly closing. Ongoing management at the point of value creation is missing.
  • Inventories are not actively managed. Safety stocks from the shortage years have never been reviewed.

The list is not exhaustive. If several signals apply, the cause usually lies in structures and processes, not in a single area. The Corporate Health Check shows exactly where: an independent assessment across ten dimensions of the company with prioritised fields of action.

More about the Corporate Health Check
Strukturelle Frühwarnsignale in Elektrotechnik, Sensorik und Elektronik: Kalkulation, Entwicklung, Programm, Vertrieb, Fertigung und Bestände (nicht abschliessend)

Levers

Five levers for earnings and liquidity

Earnings and liquidity rarely depend on a single department. Growth, margin, complexity, efficiency and cash influence each other and should therefore be considered together.

Growth. Identify profitable customers, applications and industries, measure dependence on key accounts and steer new customer acquisition via a weighted pipeline with targets per key account. New markets are opened up as part of a transformation.

Margin. Build product costing per product group and plant, review prices, simplify over-engineered products through design-to-cost and bundle purchasing. These are typical building blocks of an optimisation.

Complexity. Separate the product families that carry the business from variants that do not cover their costs, and standardise platforms and components. More on this in the article Peak performance through strategic focus.

Efficiency. Make production deviations visible on an ongoing basis, reorganise the production network across sites and review overheads. How this succeeds with your own teams is shown by Operational Excellence.

Cash. Set coverage targets for components and finished goods using ABC/XYZ logic, reduce excessive safety stocks and make purchase commitments visible. If liquidity is tight, working capital becomes the core of a restructuring.

Fünf Hebel für Ergebnis und Liquidität in Elektrotechnik und Sensorik: Wachstum, Marge, Komplexität, Effizienz und Cash mit typischen Ansatzpunkten

KPIS

Which KPIs management in electrical engineering and sensor technology should see every month

The early warning signals show where structures and processes are weak. KPIs measure where the company stands and whether measures are working. A few reliable figures are enough – monthly, comparable and forward-looking.

  • Order intake and book-to-bill ratio: show early whether the order backlog is growing or shrinking.
  • Margin per product group: shows which product families carry the earnings and which consume them.
  • Revenue share of the largest customers: makes dependencies visible before they become a risk.
  • Scrap rate and process time deviation: show where production loses margin.
  • On-time delivery: the share of orders delivered on the promised date.
  • Component inventory coverage: shows how much capital is tied up in buffers.
  • Development projects plan vs. actual: costs and deadlines of ongoing developments compared with plan.
  • Purchase commitments: make future cash outflows visible before they occur.
CEO-Cockpit Elektrotechnik und Sensorik: Auswahl monatlicher Kennzahlen zu Markt und Kunden, Produkt und Werk, Beständen sowie Ergebnis

The selection is not exhaustive; which KPIs fit depends on the business model. In the CEO cockpit, we bring these KPIs together on three levels, from management to the core process.

More about the CEO cockpit

FROM PRACTICE

Transparency as the starting point

Fallbeispiel Restrukturierung bei einem Hersteller elektromechanischer Präzisionskomponenten

Restructuring at a manufacturer of electromechanical precision components

A Swiss industrial company with plants in Europe and Asia manufactures electromechanical precision components for industrial automation and automotive. Within two years, revenue collapsed by a quarter and the EBITDA margin turned negative. Consistent product costing, a reorganised production network and systematic sales took the company from negative EBITDA to positive EBIT in 18 months.

Read the case study
Beitrag: Was Ihre Deckungsbeiträge der letzten fünf Jahre verraten

What your contribution margins of the last five years reveal

Revenue and annual results warn too late. Contribution margins per product group over five years show early whether price and performance still match. The article describes four typical patterns and what they say about a company.

Read the article

Our key topics

With tailored approaches and proven methods, we support you in aligning and developing your company — independently, and starting from your current economic situation.

Transformation: engineering and office area of an industrial company

Transformation

Sharpen your strategy and develop a holistic alignment to realize growth opportunities.

Learn more
Optimization: production area with assembly workstations and material flow

Optimization

Increase your problem-solving capacity and develop your organization from mediocrity to peak performance.

Learn more
Restructuring: production hall with machinery and operator workstations

Restructuring

Secure your company's viability through structural interventions and sustainable earnings optimization.

Learn more
Turnaround: production area of an industrial company with machinery and employees in motion

Turnaround

Secure your company's liquidity and continued existence and restore its earning power for the long term.

Learn more

EXPERIENCE

Management and hands-on experience from industry

Our team combines management experience with technical, hands-on experience from industry. We know manufacturing companies not only from analyses but also from being responsible for results, employees and customers. That is why we speak the same language as your management and your production, and our solutions work in everyday operations.

More about us

FREQUENTLY ASKED QUESTIONS

Frequently asked questions about consulting in electrical engineering and sensor technology

Which companies in electrical engineering does 10-P Consult work for?

For manufacturers of electrical and electromechanical components, sensors, connectors and electronic assemblies with around 30 to 500 employees in German-speaking Switzerland and southern Germany. Typical features are a range with many variants, a high share of development and industrial customers.

How do you find out what a company makes money with?

With product costing per product group that is comparable across all sites, and monthly tracking of revenue and margin. Only this picture allows fact-based prioritisation.

How do you deal with dependence on key accounts?

We first make it measurable: share of revenue and margin, delivery performance and contractual situation per key account. We then secure delivery capability at the most important customer and build up further customers and applications in a targeted way.

What do you do about over-engineered products?

We compare a product's functions with what customers actually pay for. This results in design-to-cost measures and simplified variants without giving up technical strength.

What if the situation is already critical?

Then securing liquidity takes priority. On request, we take over interim management or the role of Chief Restructuring Officer as part of a consulting mandate.

More about turnaround

How does a collaboration begin?

With an assessment of where you stand. The Quick Health Check takes five minutes to complete and shows what state your company is in and which fields of action offer the greatest leverage – as a five-page profile, reviewed by an experienced consultant and free of charge.

ASSESSMENT

Where does your company stand?

The Quick Health Check takes five minutes to complete and shows what state your company is in and which fields of action offer the greatest leverage – as a five-page profile, reviewed by an experienced consultant and free of charge.

Start the Quick Health CheckBook an initial meeting
Strategy consulting for SMEs
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