The VDMA Drive Technology Association has raised its spring sales forecast for the current financial year from +5% to +10%. The reason for this is a strong order intake: in the period from January to May 2021, the industry recorded an increase of 33% compared to the same period last year. This development is being supported by customer groups such as wind power, agricultural technology, construction machinery and conveyor technology, as well as the US and Chinese export markets.

Pre-crisis level from the end of 2022 at the earliest

However, a major challenge for both customers and suppliers is the restrictions in global supply chains, which are leading to delivery difficulties and cost pressure along the value chain. Nevertheless, the industry is confident that it will achieve the forecast sales growth for the year. However, growth varies from company to company depending on customer structure and product diversity. For example, some drive specialists in the automotive supply sector still have the transformation process ahead of them.

However, the trade association warns that the positive outlook should not obscure the current situation. Although drive technology has come through the crisis relatively quickly in the post-Covid era, the high production level from 2018 of just under 18 billion euros will not be reached before the end of 2022 from today's perspective.

Trade association drives digitalization and climate neutrality forward

Wilhelm Rehm, Chairman of the Drive Technology Association in the VDMA and member of the Board of Management of ZF Friedrichshafen, commented: "Drive technology is technologically well positioned. The challenges of the future for our industry will lie in the areas of digitalization - in the process, in the product and in the supply chain - and in the large area of climate neutrality, sustainability and the circular economy. This is also reflected in our association's work with the Drive4Green and Drive Technology 4.0 strategic lines."

Hartmut Rauen, Managing Director of the VDMA Drive Technology Association

© VDMA

Hartmut Rauen, Managing Director of the VDMA Drive Technology Association, adds: "Today, Germany is the best innovation area for drive technology and wants to remain the best production area. The industry is highly committed and is currently managing around 200 research projects at the best universities with its research association Antriebstechnik FVA e.V., which are addressing precisely these issues. However, in times of massive transformation processes, we need a transparent cost/benefit analysis from a new German government as well as from the EU, and a framework that is as market-based and open to technology as possible. In addition, the competitiveness of the production location must be at the center of policy in order to leverage the potential for climate protection. "

The components and systems of drive technology are the key performance modules. They are where power, torque and data come together in one movement. The sector is well positioned thanks to the development of a global Industry 4.0 ecosystem promoted by the VDMA, as Rauen explains: "We are working on the digital twin, Machine Information Interoperability, laying the foundations for digital-based processes and will also use these to efficiently implement solutions towards intelligently networked, climate-neutral production."