German industry expects sales to continue to decline

The German industry expects a decline in production and sales in the metal and electronics industry again for the past and the new year. “We will not be at the level of 2018 in 2022 either,” said the president of the Gesamtmetall association, Stefan Wolf, to the dpa. Even before the corona pandemic, the industry was in recession in 2019. The temporary slump then followed in 2020.

“In the M + E industry as a whole, our production is currently 14 percent below the level at the end of 2018.” What that means in concrete terms, Wolf described using the example of the automotive industry. In 2018, global production was around 95 million vehicles. Two years later there were only 75 million new cars. According to Wolf, there should be 82 to 83 million vehicles again in 2022.

Tense situation

Production is currently limited primarily by the delivery bottlenecks, especially for electrical components. But the situation is also tense with other materials. “We have shortages in the area of ​​steel, aluminum and plastic granulates,” emphasized Wolf. In combination with the high energy costs, this leads to “dramatic price increases for companies”.

The overall metal boss does not see that the supply will adapt to demand in the foreseeable future. “These problems in the supply chains will certainly occupy us for the next twelve months,” said Wolf. He only expects relaxation in the course of 2023. “IG Metall is therefore well advised to keep the wage round in line next year.” In view of the high energy costs and weak sales expectations, significantly higher wages would overwhelm companies.

By Editor

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