Composites Germany - Results of the 22nd Composites Market Survey are available
- Critical assessment of the current business situation
- Future expectations brighten
- Investment climate remains subdued
- Different expectations of application industries
- Growth drivers with slight shifts
- Composites index points in different directions
For the 22nd time, Composites Germany (www.composites-germany.de) has collected current key figures on the market for fiber-reinforced plastics. All member companies of the supporting associations of Composites Germany: AVK and Composites United as well as the associated partner VDMA were surveyed. In order to ensure that the different surveys can be compared without any problems, no fundamental changes were made to the survey. Once again, mainly qualitative data was collected in relation to current and future market developments.
Critical assessment of the current business situation
After consistently positive trends were seen in the assessment of the current business situation in 2021, this has slipped since 2022. There is still no sign of a trend reversal in the current survey. (see fig. 1). The reasons for the negative sentiment are manifold and were already evident in the last survey. At present, politicians do not seem to be able to create a more positive environment for the industry with appropriate measures. Overall, Germany in particular, but also Europe, is currently experiencing a very difficult market environment.
However, the main drivers of the current difficult situation are likely to be the persistently high energy and commodity/raw material prices. In addition, there are still problems in individual areas of the logistics chains, for example on the main trade/container routes, as well as a cautious consumer climate. A slowdown in global trade and uncertainties in the political arena are currently fueling the negative mood in the market. Despite rising registration figures, the automotive industry, the most important applica-tion area for composites, has not yet returned to its former volume. The construction industry, the second most important key area of application, is currently in crisis. Alt-hough the order books are still well filled, new orders are often failing to materialize. High interest rates and material costs coupled with the high cost of living are having a partic-ularly negative impact on private construction, but public construction is also currently unable to achieve the targets it has set itself.
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- Critical assessment of the current business situation
- Future expectations turn negative
- Investment climate cloudy
- Expectations for application industries vary
- Growth drivers with only slight shifts
- Composites index points in different directions
This is the 21st time that Composites Germany has identified the latest performance indicators for the fibre-reinforced plastics market. The survey covered all the member companies of the umbrella organisations of Composites Germany: AVK and Composites United, as well as the associated partner VDMA.
Critical assessment of current business situation
After consistently positive trends were evident in the assessment of the current business situation in 2021, this slipped in 2022. For the third time in a row, the current survey shows pessimistic assessments. The reasons for the negative mood are manifold. However, the main drivers are likely to be the still high energy and commodity prices. In addition, there are still problems in individual areas of the logistics chains as well as a restrained consumer climate. Despite rising registration figures, the automotive industry, the most important application area for composites, has not yet returned to its former volume. This also illustrates the change in strategy of European OEMs to move away from volume models towards high-margin vehicle segments. The construction industry, the second central area of application, is currently in crisis. Although the order books are still well filled in many cases, new orders are often not forthcoming. High interest rates and material costs combined with a high cost of living are placing a heavy burden on private construction in particular. A real decline in turnover of 7% is currently expected for the construction industry in 2023.
Please read here the full press release.
- General economic developments are dampening mood in composites industry
- Future expectations are optimistic
- Investment climate has remained stable
- Varying expectations for application industries
- Growth drivers have remained unchanged
- Composites Index is pointing in different directions
This is the 20th time that Composites Germany has identified the latest performance indicators for the fibre-reinforced plastics market. The survey covered all the member companies of the umbrella organisations of Composites Germany: AVK and Composites United, as well as the associated partner VDMA.
General economic developments are dampening mood in composite industry
Like all industries, the composite industry has been affected by strong negative forces in recent years. The main challenges over the last few years have been the Covid pandemic, a shortage of semiconductors, supply chain problems and a sharp rise in the price of raw materials. Furthermore, there have been numerous isolated effects that added to the pressure on the industry.
The main challenges during the past year were primarily a steep increase in energy and fuel prices and the cost of logistics. In addition, the war in Ukraine put a further strain on supply chains that had already been weakened. Overall, the stock market prices for both electricity and petroleum products are currently showing a clear downward trend. However, the significantly lower prices have not yet percolated from manufacturers and buyers to the end customer. The aforementioned effects have further dampened the mood in the composites industry. The index assessing the current general business situation in Germany and Europe has dropped even further than before. However, the assessment of the global situation is somewhat more positive.
Please read here the full press release.