VDMA: Machine manufacturers feel the effects of the coronavirus

Coronavirus / Covid 19

Andreas Mühlbauer, 17.03.2020, 13:20

Machine builders feel impact on supply chains

According to a flash survey conducted by the VDMA, almost 60% of all companies are already feeling the impact on their supply chains. However, the effects are still predominantly classified as "low to medium".

Among other things, the VDMA asked in its flash survey which effects affect companies and to what extent. © VDMA

This is the result of a VDMA flash survey, which was answered by a good 1000 companies. "The disruptions to supply chains are becoming increasingly noticeable, with Italy and China being the biggest concerns so far," says VDMA Chief Economist Dr. Ralph Wiechers. These disruptions can only be partially averted by alternative suppliers.

Companies expect further disruptions

Three quarters of companies that have not yet been affected expect disruptions over the next three months. "It is therefore all the more important that the movement of goods within the EU can continue to flow freely and that commuters, especially service workers, can also get to work across the borders," emphasizes Wiechers.

With regard to the announcement of production stops in the automotive industry, he adds: "As long as the factories are not completely closed, our companies can theoretically continue to deliver the machines and systems ordered or carry out their servicing. But the more severe the restrictions in our customer industries become, the harder we will be hit as a supplier."

All branches of mechanical engineering affected

The VDMA flash survey also shows that all branches of mechanical engineering are affected by the impact of the pandemic. In many companies, there is uncertainty as to whether the production losses can still be made up this year. Around 70% of the companies surveyed anticipate a drop in sales in 2020, with almost half (45%) expecting a fall in sales of more than 10%.

As a result, a good 40% of the mechanical engineering companies surveyed have already made capacity adjustments, mainly via the working time account, but also through short-time working. "Downsizing is also increasingly becoming an issue in the medium-sized mechanical engineering industry," warns Wiechers. Around half of the companies are also considering cutting back on investment plans for 2020.

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