Fedecom expects a sharp drop in turnover in the metal engineering sector after the summer due to the corona virus. The virus leads to anxiety and uncertainty. This also applies to the suppliers of machines and technology for agriculture, green management and industry. The industry association conducted a survey among its members.
Traditionally, there is a peak of work in the spring. This has mitigated the effects of the virus to date. The effect is yet to come, the survey shows. Respondents expect a significant bloodletting in the course of the year.
More than 75% of the companies say they experience only limited effects from the virus. A quarter of the companies indicate that they are already experiencing many to many consequences. For the coming months, half of the companies expect many to many problems. Almost 40% of affiliated members have responded, the results are therefore considered representative of the industry.
Sales decline
Of the respondents, 62% indicated that the turnover development and order position has not been strongly influenced to date. On the other hand, 38% indicate that they already see a decrease in turnover of more than 10%. Furthermore, more than three quarters of companies expect the biggest blow to come this year. These companies indicate that the order book will decrease by more than 20% in the coming months.
Manufacturers and importers in particular are hit hard in terms of turnover. 45% of the manufacturers and 50% of the importers indicate that they have lost more than 10% of their turnover in recent weeks. Several entrepreneurs expect the biggest problems in and after the summer. The peak will then be eliminated due to spring work and the order book threatens to dry up.
Stay away orders
The biggest concern among the respondents is therefore the declining order book. 78% indicate that orders will decrease by more than 10%. Slightly less than half even think a decrease of more than 20%. The second biggest concern among entrepreneurs is the lack of willingness of the customer to do business. This probably reflects the effect of the accumulation of uncertainty in government policy in the field of nitrogen, PFAS and climate regulations.
48% of the companies think they should make use of the aid measure to defer tax payment. 45% are also thinking of applying for extra credit. Furthermore, 27% think they will make use of wage cost reductions and 29% of a flexible deployment of labour.
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