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VDMA Significantly Reduces Production Forecast for 2022

War and Corona hamper recovery in the machinery and plant engineering sector

01.06.2022 - The Ukraine war and the lockdowns in China are weakening production growth in the machinery and plant engineering sector. Business with Russia has come to a virtual standstill. The VDMA is therefore revising its production forecast for 2022 from plus 4 to plus 1 percent.

The Ukraine war and supply chain problems are weighing on companies, which is why the VDMA is reducing its production forecast for 2022 to plus 1 percent. For sales, the VDMA economists expect nominal growth of 8 percent this year. This would mean a peak of 239 billion euros. Nevertheless, the mechanical engineering industry can thus look back on an order cushion of currently 11.6 months, said VDMA President Karl Haeusgen at the association's press conference on the Hannover Messe.

Despite the prevailing risks, the mechanical engineering industry draws confidence from numerous business opportunities in many important sales markets. "These include above all the government economic stimulus and infrastructure programs around the globe, which continue to have an impact, and the growing efforts of many countries to combat climate change. And high levels of investment are needed in many places to realign value and supply chains," Haeusgen stressed.

Russian business slumps

However, the Russian invasion of Ukraine remains a risk for the mechanical engineering industry. In the meantime, it has led to a complete slowdown in business with the region. This is the result of a recent survey conducted by the VDMA among member companies that are active in the Russian market with production, sales or service. 95 percent of the nearly 300 companies participating in the survey reported that their business activities in Russia have now been noticeably restricted or have come to a complete standstill.

Contact

VDMA Verband Deutscher Maschinen- und Anlagenbauer e.V.

Lyoner Str. 18
60528 Frankfurt
Germany

+49 69 6603 0
+49 69 6603 1511

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