© wrangler Analysis | May 08, 2015

Business climate survey shows enduring positive growth trend

According to the current business climate survey of VDMA Productronics the German manufacturers of components, machinery and production equipment for electronics expect a growth in turnover of 2.8 percent for the current year and an increaseof 6.3 percent for 2016.
After the record year 2014 with a plus of almost 10 percent the machine makers are poised for further business opportunities. All over the world the demand for electronics remains unbroken. The investment backlog for electronics production has been covered in 2014 whereas the demand in 2015 will be restored to a normal level. New drivers like the “Internet of Things” enhance growth phantasies for 2016. A weak Euro and the declining price of oil additionally further enhance positive stimulus of the electronics machine makers, same as for the machinery industry as a whole.

Automobile clients strong, competition in Asia grows

“For the German production equipment manufacturers automotive electronics remains a strong driver for the demand in all sectors of the process chain. Not only electronics and safety technology in the car itself, but also electronics for robots and control systems in factories as well contribute to this situation”, explains Rainer Kurtz, CEO of the kurtz-ersa group and Chairman of VDMA Electronics, Micro and Nano Technologies. “The Chinese customer market is strong despite all the prophecies of doom – but this is, at the same time, where competition in the production equipment sector arises”, explains Kurtz.

New feature: Breakdown of export by regions

The export ratio in the electronics production equipment industry traditionally amounts to more than 80 percent. For the first time the business climate survey of VDMA Productronics now provides a breakdown of the target markets by regions. With more than 38 percent the focus here is on EU member states. However, this includes deliveries of components for machines which are intended for the Asian market to a considerable part. Hardly surprising Asia comes close behind the EU with 35 percent. Next is North America with almost 12 percent and the Latin American market has reached a significant size with four percent.

Order income and order range positive

According to the current survey the order situation has increased once again. In the meantime more than 80 percent report a better order situation compared to last year. Orders on hand amount to 3.6 production months which is stable above the 3.2 months that have been the average for many years for the electronics production equipment manufacturers.

Employment normal, reduction of procurement costs

Compared to the survey in October overtime has been reduced to normal working hours: only 34 percent of the companies report overtime, 65 percent report normal working hours. Short-time work does not really matter currently and for the planning. For the intermediate support of revenues the reporting companies now concentrate on extending their portfolio of products and services. An increase in efficiency traditionally remains to be of great importance.


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