While pro­duc­tion in the first half of 2020 decreased by an unweighted aver­age of around 32% com­pared with the same period last year, the aver­age drop in orders across Europe is 39%. Capa­city util­isa­tion is there­fore cur­rently at a rel­at­ively low level of 67%.
While new orders from the engin­eer­ing sec­tor have gen­er­ally fallen markedly, those from the auto­mot­ive sec­tor have slumped strongly.

92% of those sur­veyed stated that short-time work is being used to adjust capa­city. On aver­age, a solid half of the work­force is in short-time work. The fig­ures vary between 30% and 76% in the indi­vidual coun­tries.

For 2020, the asso­ci­ations gen­er­ally expect a decline in pro­duc­tion of around 25%. The fig­ures vary between 10% and 40%.
Accord­ingly, around 60% expect the crisis to last for more than 12 months. Unfor­tu­nately, job cuts will there­fore become a press­ing issue in the com­ing months. It is feared that on aver­age around a quarter of jobs are acutely threatened.

The third CAEF sur­vey clearly shows that the foundry industry will need some time to catch up. In the com­ing weeks and months, the most import­ant factor will be get­ting the pan­demic back under con­trol. The rising num­bers in large parts of Europe are par­tic­u­larly wor­ry­ing. Wide-scale lock­downs and a renewed col­lapse in con­sumer demand would have a long-term neg­at­ive impact on the invest­ment propensity of many of the indus­tries that use cast­ings, and the situ­ation of foundries and their employ­ees would deteri­or­ate increas­ingly.

 

CAEF Con­tact:

Till­man van de Sand
phone: +49 211 68 71 — 301
tillman.vandesand@caef.eu

General Secretariat
CAEF - The European Foundry Association

Hansaallee 203
40549 Düsseldorf
Germany

tel: +49 (0)211 6871 217
fax: +49 (0)211 6871 40217
e-mail: info@caef.eu