Tuesday, 28 April 2020

Hard Times for the Mechanical Engineering Industry

The mechanical engineering industry is increasingly feeling the effects of the corona pandemic; orders are reduced or even cancelled. According to the VDMA flash survey, many companies are making capacity adjustments.

The situation in the mechanical engineering industry has worsened further due to the consequences of the corona pandemic. At the end of March, 84 % of the member companies surveyed by the VDMA were already reporting adverse effects, and this figure has since risen to 89 % (mid-April). In addition, the main problems have shifted more towards demand-side disruptions, i.e., a drop in orders or cancellations. "Overall, 45 % of the companies report noticeable order losses or cancellations, and 32 % of those surveyed even serious ones. 

However, the supply chains are also still under strong pressure," says VDMA Chief Economist jobs with computer science degree. The epicenter of the disruptions continues to be in Europe. More than 90 % of mechanical engineering companies reported supply-side and demand-side disruptions from Europe. On the demand side, there is a strong negative impact coming from the USA (47 %). In China, on the other hand, the situation appears to be stabilizing.

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