Corona Crisis Survey German Foundry Industry in Massive Crisis
Germany's foundry industry remains in its massive crisis in the ninth month of Corona and still requires support. Nevertheless, the majority of the industry expects a thorough recovery by 2022, which is the central finding of the sixth survey conducted by the Federal Association of the German Foundry Industry.
Since March 2020 (first survey), the Federal Association of the German Foundry Industry (BDG) has been asking its member companies about the concrete effects of the corona crisis and has thus been exclusively and systematically collecting data on the German foundry industry. The basic framework of similar questions is supplemented according to the situation. The now sixth survey from week 42 consisted of eight questions.
In the case of several questions that were continuously collected, the answers have stabilized - here, the handling of the crisis situation has obviously levelled off. A constant 96 % of the foundries affirm that they are feeling "effects on their operations", in particular "loss of orders" (92 %). Of these, 87 % are experiencing "noticeable" or "serious" losses.
The industry has suffered massive losses in turnover and production, is predominantly on short-time work and is also reducing staff, sometimes significantly: this was the tenor of the last two surveys and is now continuing in October. The companies expect an average drop of 21.8 % in sales, a figure almost identical to that in September.
A new question was "When do you expect to reach the pre-crisis level of 2018?" Feedback from the industry on this question is highly optimistic: More than 90 % of the companies in the current survey expect to even reach the level of the boom year 2018. By far the largest group, around 54 %, expects to achieve this in the course of 2022. 27 % even expect a return to the 2018 level already in the course of 2021. 19 % of the companies see the time horizon for this after 2022. For the coming year, about 50 % of the companies already expect an increase in sales and almost 60 % expect an increase in production compared to the crisis year 2020.
"The German foundry industry is currently in a severe crisis - nevertheless, the signs - with the support now required - are very good for a thorough recovery in the course of 2022," says Max Schumacher, General Manager of the BDG. "Once again, it is evident that the foundrymen can make a significant contribution to mastering the tasks of the future."