The electrical industry was hit hard by the coronavirus pandemic, according to the ZVEI annual press conference at the end of January. According to the industry association's projections, production fell by 7% and sales by 5.6% in the crisis year 2020 compared to the previous year. The electrical industry already recorded a 1.8% decline in sales in 2019 compared to 2018. The association does not expect to see the pre-crisis level until 2022 at the earliest.

The electrical industry at a glance

At EUR 180 billion, revenue only reached the level of 2016. The number of employees fell only moderately from 885,403 to 873,000 due to short-time working. Most recently, one in eight was still on short-time work. The electrical and electronics industry's exports to Europe fell by 6.5% to around €118 billion in the period from January to November 2020. Exports to the eurozone even fell by 8.4% to just under €58 billion.

The ZVEI expects production to increase by 5% in 2021. This would make up for around two thirds of last year's losses. However, these forecasts are subject to a high degree of uncertainty, the association emphasizes. This includes the question of how long the current lockdown will last and whether it will be tightened or eased. ZVEI President Dr. Gunther Kegel therefore appealed to politicians: "A hard lockdown of the industry must be avoided. It is not toughness, but differentiated protective measures that will determine the success of the fight against the pandemic."

Electrical industry as the key to an all-electric society

Kegel sees one reason for the industry's comparatively good position in the ever-increasing electrification and digitalization. The trend towards an all-electric society is closely linked to tackling climate change - a challenge that, in his view, cannot be met through bans and renunciation, but only through the widespread use of technological innovations.

According to Kegel, the electrical industry is in a key position here: "The all-electric society will be characterized by the intelligent coupling of all climate-relevant sectors. There is great potential in the end-to-end electrification, digitalization and automation of the energy, industry, building and mobility sectors in order to achieve the climate targets that have been set. This is only possible with innovations from the electrical industry." This is the only way to reconcile sustainable, resource-conserving economic growth and social prosperity.

Appeal to politicians

In order to make better use of the opportunities offered by the all-electric society, policymakers urgently need to make adjustments. "If green electricity becomes the primary energy source, it must be relieved. We are therefore sticking to our demand: the EEG levy must be reduced quickly now and abolished in the future, while the CO2 price must rise. At the same time, climate-friendly technologies must be used on a broad scale in order to achieve the necessary scaling effects. To this end, the infrastructure must also be urgently expanded - whether in existing buildings, which are largely not ready for the energy transition due to outdated electrical installations, or for charging electric cars," says Kegel.

Warning of border closures in Europe

Europe's economy is highly interconnected. Corona has also left a clear mark on the continent's economic performance. "Europe's vulnerability has become clear over the past year. We warn against continuing the discussion about border closures in Europe. The cross-border movement of goods is not a major factor in the pandemic and must be maintained. Otherwise, Europe faces another massive economic slump," explained Wolfgang Weber, Chairman of the ZVEI Executive Board.

Open borders and global value creation networks are fundamental. At the same time, Europe must remain "technologically sovereign" in key technologies such as microelectronics and "must not be misunderstood as isolationism or self-sufficiency", emphasizes Weber. "On the contrary, technological sovereignty means being able to use the opportunities of global value creation in a self-determined way. The stronger your own technological position, the better," he continued. A strong internal market is crucial for this. The EU must make it its central growth project and continuously develop it further.