Manufacturers with production sites in Germany look to 2022 with the hope that 7% single-digit sales growth could be achieved if the situation on the supplier side improves.
- The industry is currently facing many crises
- Supply chain issues have intensified.
- No growth in turnover this year despite a good order situation.
This expectation is lapsed; the industry considers itself incapable of making serious forecasts in the current crisis environment of war, inflation, energy shortages, the beginning of interest rate reversals, the weak euro, negative effects lingering effects of the pandemic, particularly in China, and huge disruptions in international logistics.
The situation is paradoxical. The high order book in the construction machinery industry as well as in the building materials industry contradicts the situation. Despite this good situation, some companies are on partial unemployment due to a lack of equipment and preliminary products.
It is absolutely unclear if they will be able to work on orders in the coming months. Additional demand stimuli are barely in sight so far. Therefore, flexible framework conditions are imperative in order to be able to maneuver in these uncertain waters.
In the medium term, the outlook remains positive as most client industries will continue to grow in the future. However, there will be a slowdown effect due to the increase in public debt in many countries following the pandemic and the war in Ukraine.
The main tasks of CO reduction2 and the progress of digitization strengthen the innovative strength of companies and thus open up expanded or new areas of activity. Leading trade fairs for the construction machinery and building materials plant industry, glasstec in September and bauma in October, will show the way forward.
Read the article online at: https://www.worldcement.com/europe-cis/01082022/construction-equipment-and-building-materials-plant-industry-in-difficult-waters/