European foundry industry discusses the key challenges of the crisis
To exchange ideas during one of the most challenging economic crises since decades more than 80 representatives of European foundries and foundry associations met in Paris on 22 and 23 September at the CAEF Summit 2022. The two-day programme included presentations by experts on various facets of the crisis, but also on perspectives.
European Foundry Industry Sentiment
The FISI is still stable in the holiday month of August. However, with the onset of the heating season and a steady slowdown in the economy, the coming period is expected to be extremely rough. Thus, more and more businesses are now being really hit by energy costs as old contracts expire and the number of those who have to produce under the new conditions is now steadily increasing.
European Foundry Industry Sentiment
There has never been a greater difference between the assessment of the situation and the expectations since the beginning of the data collection. While the current situation is still considered positive by many foundries due to the good order situation in the mechanical engineering sector, the expectations for the next six months are on the downturn. Tensions are rising, especially as signs of a slowdown in demand are intensifying.
Apply now for the EUROPEAN FOUNDRY WOMEN’S AWARD 2022!
Like many other industries, the foundry industry is considered a male-dominated sector. Nevertheless, countless women are working in our foundries from production and administration to research in all areas and are doing indispensable work every day. What is daily routine and normality for individual colleagues is inspiring many others — especially young talents! Role models and stories are needed to dispel prejudices and promote the diversity of our industry, not only in terms of products, but also in terms of the people who take it to a new level. CAEF therefore calls on you to participate in the new EUROPEAN FOUNDRY WOMEN’S AWARD.
European Foundry Industry Sentiment
After the significant drop due to Russia’s invasion of Ukraine, the business climate of the European foundries is stabilising for the time being, despite all the uncertainties. While the assessment of the current business situation is slightly declining, the expectations for the coming six months are improving moderately. The historic drop of the FISI in recent weeks was, however, due to the latter. The fact that companies’ expectations are riding a rollercoaster given the great uncertainties is one of the few things that is momentarily certain.
European Foundry Industry Sentiment
The European Foundry Industry Sentiment Indicator (FISI) increased by 0.6 points in May and reaches a value of 106.1 points. After the highest loss since the outbreak of corona pandemic in Europe in March 2020 the FISI has slightly recovered.
After the decline in the previous months was caused by a war-related drop in business expectations for the upcoming six months, European foundries are now increasingly experiencing some positive effects on their business situation.
European Foundry Industry Sentiment
While the sanctions against Russia were steadily tightened in March and April, the problems in the supply chains and the adjustments in the prices for input materials are becoming more and more apparent for European foundries. In addition to the war, global disruptions in the logistics industry have also increased due to the harsh Corona lockdown in China. The FISI drops 2.7 points in April, the largest decline since the Covid-19 outbreak in Europe in March 2020.
European Foundry Industry Sentiment
The war in Ukraine creates considerable uncertainty, causing the FISI to drop in March. This is so far less related to a worsened assessment of current business situation but rather to pessimistic expectations for the upcoming six months.
European Foundry Industry Sentiment
The fact that the FISI in February reached its highest value since pre-Corona June has no significance in view of the Russian invasion of Ukraine. The promising data were collected before the outbreak of the war. The significant market disruptions and their impact on European foundries will become visible in the data in March.
Exploding energy prices and raw materials supply difficulties require transparency across the value chain
In deep empathy with the people in Ukraine and for the sake of the European peace order, CAEF stands behind the sanctions against Russia. However, the consequences for the European economy can only be borne, if there is an open dialogue between suppliers and customers.