VDMA: Order volume recovered at the end of 2020
In December 2020, the volume of orders in the mechanical engineering sector increased by 7 percent year-on-year, the VDMA reports. For the year as a whole, the books show a real decline in orders of 11 percent.
The 11 percent drop in orders is the largest since the financial crisis of 2008/09, says the VDMA. Nevertheless, the curve pointed upward toward the end of the year. "The recovery that began in the fall of 2020 is continuing, but it remains on little firm ground. The pandemic is not over, and the recurring discussions about lockdowns as well as the tightened travel restrictions are serious burdens and make a sustainable upturn more difficult," VDMA chief economist Dr. Ralph Wiechers summed up.
While 1 percent more orders came from the euro countries in December than in the same month last year, 9 percent more came from the non-euro countries. This year-end spurt still resulted in a 4 percent increase in orders in the fourth quarter of 2020.
Foreign countries in particular ordered less in 2020 as a whole
The global difficulties caused by Corona, on the other hand, are clearly reflected in the annual balance of incoming orders. While domestic orders in 2020 remained 6 percent below the previous year's level, 13 percent fewer orders came from foreign countries. Euro countries (down 11 percent) and non-euro countries (down 13 percent) remained almost in sync. "For us as an export-oriented industry, it is crucial that global demand picks up again this year and can be served with as little disruption as possible," Wiechers explains.
