Germany’ mechanical engineering sector foresees improvement, poll shows

Germany’s mechanical engineering industry is continuing to feel the effects of the Covid 19 pandemic Some signs of improvement however are also being seen, according to the results of the latest survey by its trade association VDMA.

In the fourth poll of its type this year, 724 companies have participated, Kallanish understands. By mid-April, three-quarters of those surveyed had recorded a noticeable or serious fall in orders or cancellations, and by the beginning of May this figure had climbed to 85%.

The latest poll however promises some better news. While almost half of the companies still said that they had been noticeably affected on the supply side in mid-April, the figure is now just under four out of ten companies. “Many mechanical engineering companies report that the difficulties with supplies from China in particular are easing,” says chief economist Ralph Wiechers.

It is also encouraging that the assessment of developments over the next three months has brightened somewhat on both the demand and the supply side. In mid-April, 43% of companies expected the order situation to worsen. Now, only slightly more than 30% expected an increase of demand-side disturbance. Almost half of the companies polled however now expect the situation to remain tense for the next three months.

The companies are facing major problems due to travel and residence restrictions. As a tangible example, VDMA says that more than 80% of companies said that their employees are not allowed access to their customers’ premises as normal. In addition, 62% of customers delay or refuse acceptance of delivered machines, the poll shows.