Corona Crisis Developments at a Glance

Impact on Light Metal Industry Corona Crisis Developments at a Glance

27.04.2020Editor: Isabell Page

Here you can find out everything worth knowing about the Corona crisis and its effects on the international foundry industry. We have compiled an overview of current delivery statuses and initial assessments by our experts on the situation in Germany, China and Turkey.

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Within a short period of time, infections with Covid-19 have risen to more than 500,000 worldwide.
(Source: gemeinfrei / Pexels )

The corona crisis began with postponements of relevant industry events and trade fairs. Today, entire production lines at OEMs are at a standstill for several weeks. Read here about the beginnings of the crisis:

The consequences of the coronavirus on the light metal industry are not yet fully foreseeable.

Supply bottlenecks or downtimes currently affect many supply chains. This is also confirmed by The Mechanical Engineering Industry Association (VDMA), which represents around 3,300 member companies in the SME-dominated mechanical and systems engineering industry in Germany and Europe. See the survey results here:

Disruptions in supply chains are particularly prevalent in Italy, Germany, China, France and the USA.

"Overall, 45 percent of the companies report noticeable order losses or cancellations, and 32 percent of those surveyed even serious ones."

Take a look at our list to see the current status of relevant foundries and suppliers:

Despite the Corona crisis, many companies are still able to deliver and continue to offer their services.

Situation Worldwide

In order to capture the overall climate in the international foundry industry, we have conducted a survey on the main difficulties and challenges. A total of 126 participants from 40 countries took part. Read the results in the white paper:

Situation in Germany

The first effects of the corona crisis are already visible in the automotive industry, as many are suspending production in their plants for several weeks. This also raises the question of the effects on the supplier industry and the extent to which this will affect the aluminum industry? Marius Baader, Managing Director of the General Aluminum Association Gesamtverband der Aluminiumindustrie e. V. (GDA) gives a first insight:

The protective measures against the coronavirus led to inefficiencies in production and further pressure on the profitability of the sites.

At the beginning of March 2020 the Federal Association of the German Foundry Industry (BDG) already conducted a member survey on the current situation. Take a look at the most important results:

Almost 40 % of the companies surveyed had already introduced short-time working or were planning to do so in the immediate future.

In order to obtain a continuously updated impression of the developments at German foundries during the corona crisis, the BDG has conducted further surveys in the coming months. Find the results in the following article:

In May, 99 % of the surveyed companies stated effects on the operating procedure.

How can foundries react now? In the assessment of our expert Johannes Messer, you can find out how government loans and new strategies can help in dealing with the crisis:

#expert

"Despite all cost adjustments the company's results will collapse sharply."

In order to provide German foundries with additional assistance in the difficult situation, we have convened a panel of experts as part of the webcast series "From Expert to Expert". The German-language video reflects the current situation and helps foundries to orientate themselves in times of crisis:

Situation in China

Our expert Xia Xu-Fees, outlines the current situation in China and explains what could be learned from the negative impact of coronavirus on global supply chains and what measures would be taken in China to stimulate the economic outbreak:

#expert

One in three motorized vehicles originates from China. This also affects the growth of China's foundries.

Situation in Turkey

The coronavirus doesn't stop at Turkey either. What effects does the pandemic have on Turkish industry? Our expert Dr. Ramazan Kayikci gives an initial assessment of the situation:

#expert

"Many people believe that Turkey will be doing better after the corona crisis."

Situation in India

How are Indian companies coping with the corona crisis? With a focus on supply chains, recommendations for action and government measures, our experts xy and yc explain how the corona crisis is developing in India.

#expert

Some sectors, such as the automotive, pharmaceutical, electronics and chemical industries, were severely affected by the corona crisis.

#expert

It is not only Indian companies that have to prove their worth during the corona crisis by acting ingeniously; the government is also called upon to act.

Even though the situation is changing worldwide on a daily basis, we are trying to keep you up to date with the latest news as best we can.

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