Almost four million people work in the metal and electrical industry, which is in crisis. The employers’ association Gesamtmetall expects a decline in production.
The metal and electrical industry, with almost four million employees in Germany, is pessimistic about the coming months. The employers’ association Gesamtmetall expects the industry’s production to fall by two to three percent in the current year. “In view of the weak order situation and the ongoing pessimism, a continuation of the downward trend is likely,” said Gesamtmetall chief economist Lars Kroemer.
Last year, according to figures from the Federal Statistical Office, the industry recorded a production increase of 2.6 percent compared to the previous year. “However, the recovery tipped over in the second half of 2023. In the fourth quarter of 2023, production fell again for the second quarter in a row,” said Gesamtmetall. The production level is now around ten percent below the pre-crisis level of 2018.
“In addition to production, sales and sales also continued to decline in the fourth quarter,” said Kroemer. “In addition to the weak domestic business, revenues outside the eurozone are falling in particular.” The industry recorded a decline of 2.2 percent in sales in the fourth quarter and a decline of 2.5 percent in sales.
According to Total Metal, the order volume in 2023 was 5.1 percent below the previous year’s value. “Despite the booking of major orders at the end of the year, the decline continued in the fourth quarter of 2023,” it said. Companies continue to rate demand as poor.
Source: Stern
