The electrical and electronics industry is cautiously optimistic: "We expect production growth of 5% for the industry and could thus make up for four-fifths of last year's decline in production," said ZVEI President Dr. Gunther Kegel at the traditional press conference for the Hannover Messe Digital Edition.

This assessment is supported by the fact that important sentiment indicators such as situation assessments, business expectations and thus the overall business climate have risen since the summer. According to the ZVEI , capacity utilization has almost returned to the previous year's level at 82% in the first quarter of 2021, after falling sharply in the second quarter of last year. In addition, incoming orders have also gained momentum since the fall and continued to develop positively at the beginning of the year - in February 2021 alone, there was an increase of 13% compared to the previous year.

However, the industry is concerned about bottlenecks in the procurement of preliminary services. There are supply problems with microchips, plastics, steel and copper, among others. These supply-side shortages are exacerbated by transportation problems, some of which are significant. "Scarce transport capacities lead to significantly higher costs and longer delivery times," explains Dr. Kegel. The coronavirus situation is also causing uncertainty. "Companies must be able to continue producing." A general lockdown for the economy would only achieve a few positive effects in the fight against the pandemic, but at the same time would cause great damage to businesses and thus the economy. "Companies in the electrical industry have taken effective protective measures and are also making an important contribution to combating the pandemic with tests and company medical services."

China is considered a problem

China was the only country to which the electrical industry was able to significantly increase its exports. Growth amounted to 6.5% to 23.3 billion euros. "The positive economic development contrasts with a worrying political development," comments the ZVEI President on the current situation. "We are watching the conflict between China and the USA, as well as the rigid enforcement of China's geopolitical and security interests, with concern." This increases the risk that the multilateral global economic order will suffer further damage and disintegrate into a "patchwork globalization". "For small and medium-sized enterprises in particular, the disintegration of economic areas would be almost impossible to manage. Europe must take decisive action against this."

Counteracting distortions of competition

A recent ZVEI survey shows that in this global situation, member companies want Europe and Germany to adopt a much more active industrial policy. 60% are in favor of establishing and expanding production facilities to ensure security of supply. And the majority also call for greater compensation for subsidy practices that distort competition. "European politicians must do more to ensure fair competitive conditions," demands Wolfgang Weber, Chairman of the ZVEI Management Board. "Germany and Europe must remain a location for cutting-edge technology in order to be sovereign and internationally competitive." The so-called 'IPCEIs' (Important Projects of Common European Interests) are a suitable means of achieving this.