Testing technology

Andreas Mühlbauer,

Sales growth in 2021 and optimism for 2022

The economic situation in the testing technology sector has improved noticeably since the spring. Nevertheless, the industry has not yet fully overcome the coronavirus crisis.

Dr. Matthias Irle, EMG Automation and Chairman of the Testing Technology department. © EMG

Production in the first half of 2021 amounted to 985 million euros, 5% less than in the same period of the previous year. Although incoming orders are recovering, growth is still at a low level compared to the mechanical engineering sector as a whole.

Overall, companies expect turnover growth of around 6% for 2021 for the sector as a whole. Companies are slightly more optimistic than in the spring that they will be able to reach their 2019 turnover level more quickly.

"The testing technology sector is very broadly based and supplies its machines and test benches to a wide variety of industries. In most cases, a company serves one or more niches. Accordingly, individual sales trends and expectations depend very much on the individual customer sectors and regions. For example, there are reports of good sales in the e-mobility sector and stagnating or declining sales in the traditional automotive industry, although this is partly due to the extremely difficult procurement situation," says Dr. Matthias Irle, EMG Automation and Chairman of the Testing Technology department, describing the current situation in the industry.

Supply bottlenecks

Companies in the sector are struggling with problems in the supply chain. The bottlenecks in the supply chain are most evident in electronic components. However, there are also serious and noticeable bottlenecks in metal products and plastic/rubber preliminary products.

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A lack of microchips often results in expensive reengineering of end products. Another problem in the industry is the increasing shortage of skilled workers.

Good prospects for 2022

For the coming year, companies in the testing technology sector expect incoming orders to be higher or at least the same. The majority of companies expect a slightly stronger order intake from the domestic market. Incoming orders from the EU-27 partner countries are also predominantly viewed positively.

Most companies are seeing significant growth impetus from abroad. In terms of export markets, the focus remains on China and the USA. Companies are expecting a significant increase in orders from China. Most companies expect orders from the USA to remain stable. Only a few companies anticipate a slight or even significant increase in demand. However, the international environment is also characterized by a heterogeneous product and industry portfolio. "Overall, the testing technology sector is optimistic about the coming year. We expect sales to increase by 5 percent," says Irle.

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