Central and Eastern Europe is a strategically important area for industry throughout the world. With an interest in lower production costs, many groups have transferred part of their manufacturing business there. Consequently, Industries in Central and Eastern Europe have three challenges: 

• Transferring their production with optimal performance and quality,
• Maximising productivity while launching new projects in the face of worldwide competition,
• Setting up innovating R&D centres that measure up to the creative potential in Central and Eastern Europe.

The Automotive and Manufacturing Industry
In these industries, the most important incentives for change are huge cost pressures, intense competition, and the cyclical nature and stagnation of sales. 

• Growth occurs mainly outside the triade markets, hence there is a need for a truly global action
• An increasing number of model variants become necessary to cover a chosen market
• With high legal demands and pressure towards environmental protection, emissions, and safety, automotive players need technology to provide better or new functionality : they need to shorten their development cycles, and make sure that they constantly increase the efficiency of their engineering resources
• Global overcapacity and new competitors from emerging markets mean that there are discounts and price wars, putting even higher cost pressure on all partners in the value chain

The Electronics and Telecommunication Industry
The electronics and telecoms sectors are also very robust in Central and Eastern Europe. The proximity to Western Europe makes it competitive compared to Asia and Ukraine (on certain products). The small number of suppliers and the quality of their products have a heavy impact on the value chain. The pressure of competition means industries have to greatly increase their capacity for innovation.

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