Crown crisis Positive outlook for the mechanical engineering industry?
Editor: Nicole Kareta
The vast majority of mechanical engineering companies are confident that they will return to the nominal sales level of 2019 in the medium term. However, the order situation remains tight for the moment.
The vast majority of mechanical engineering companies are convinced that in the medium term they will return to the nominal sales level of 2019. This is the key message of the latest VDMA flash survey on the corona pandemic, to which 658 member companies have participated. â80% of our members plan to reach nominal 2019 revenue levels again by 2022 at the latest. Around 40% of companies with an annual turnover of less than 250 million euros expect this step to be taken as early as 2021. The largest companies are a little more skeptical in this regard, with only 22% companies with an annual turnover of 500 million euros or more showing this confidence, âsays Dr Ralph Wiechers, Chief Economist of VDMA.
âBut there are a number of other hurdles to overcome on the way to this goal besides the corona pandemic,â adds Wiechers. Around 70% of the decision makers surveyed see increasing price competition as a particularly important challenge for the future. More than half of those polled see higher foreign trade barriers and growing market fragmentation as a persistent problem.
The order situation remains tense
At the same time, the order situation in the mechanical engineering sector remains very tense. “40% of companies say they are noticeable or serious order losses or cancellationsBusinesses also remain pessimistic about the outlook for the demand side for the next three months.
More than 80% of companies realize extensive capacity adjustments. About two-thirds of companies have recourse to partial unemployment. âShort-time working has already proved its worth as a job security tool during the financial crisis. Therefore, it is not surprising that many companies use short-time working during the corona crisis, âexplains Wiechers, chief economist of VDMA.
However, the positive developments in supply chains and âother disruptionsâ are encouraging. “In almost all areas, respondents report fewer deficiencies, from handling logistics / transport and late acceptance by customers to travel and accommodation restrictions. As part of opening borders , further easing is to be expected, “concludes Wiechers.