Between March 12 and 7, the VDMA conducted a flash survey on the coronavirus. The result: the pandemic is having a measurable impact on the mechanical engineering sector, which is characterized by global value creation networks. Almost 60% of all companies are already experiencing adverse effects on their supply chains, although the impact is still predominantly classified as "low to medium". This is the result of a VDMA flash survey, which was answered by a good 1,000 companies. "The disruptions to supply chains are becoming increasingly noticeable, with Italy and China being the biggest concerns so far," says VDMA Chief Economist Dr. Ralph Wiechers. These disruptions can only be partially averted by alternative suppliers.

Three quarters of companies that have not yet been affected expect disruptions in the next three months. "It is therefore all the more important that the movement of goods within the EU can continue to flow freely and that commuters, especially service staff, can get to work across borders," emphasizes Wiechers. With regard to the announcement of production stops in the automotive industry, the VDMA Chief Economist adds: "As long as the factories are not completely closed, our companies can theoretically continue to deliver the machines and systems they have ordered or carry out their servicing. But the more severe the restrictions in our customer industries become, the harder we as suppliers will be hit."

Short-time working and job cuts possible

The VDMA flash survey also shows that all branches of mechanical engineering are affected by the impact of the pandemic. In many companies, there is uncertainty as to whether the production losses can still be made up this year. Around 70% of the companies surveyed expect a drop in sales in 2020, with just under half (45%) expecting a fall in sales of more than 10%. As a result, a good 40% of the mechanical engineering companies surveyed have already made capacity adjustments, mainly via the working time account, but also through short-time working. "Downsizing is also increasingly becoming an issue in the medium-sized mechanical engineering industry," warns Wiechers. Around half of the companies are also considering cutting back on investment plans for 2020.