According to current estimates, the coronavirus crisis will lead to a sharp economic downturn in both Germany and the USA. Declines in exports and the difficulty in planning the expected development of the pandemic and the economy are leading to uncertainty in the manufacturing industry. The recently conducted study by Relayr and the market research institute Forsa now shows how companies in the manufacturing industries of both countries themselves assess the crisis and its impact on their own business.

According to the survey, 21% of the German companies surveyed rate the effects of the crisis on their company as partly or even very positive, while 25% do not notice any relevant differences. In the USA, the mood is slightly worse, but here too, 18% of respondents still rate the effects of the crisis on their own company as partly or very positive, while 15% see no effect on their business. Not surprisingly, 54% of German respondents say that the crisis has had a partially or very negative impact on their business. In the USA, the figure is significantly higher at 67%. The biggest challenges posed by the crisis were the decline in new orders (Germany: 55%, USA: 58%), the drop in sales (Germany: 57%, USA: 54%) and employees' concerns about Covid-19 infection (Germany: 44%, USA: 56%). However, only 16% of German companies are seriously concerned about the continued existence of the company; in the USA, the figure is even lower at 11%.

Positive investment behavior

The German responses to the question of how the pandemic is affecting their investment behavior are surprisingly positive. 30% of the German companies surveyed plan to invest the same amount in 2020 as last year - 24% even more than in 2019. These figures are lower in the USA: 17% plan to invest the same amount as in the previous year, 19% want to invest more. In contrast, 45% of German companies are planning to invest less than in 2019 - in the US, the figure is 50%.

Flexibility is the new mantra

What measures have the companies surveyed taken to overcome the challenges of the crisis? The top answer here is 'increased flexibility' (Germany: 54%, USA: 59%). Wanting to further improve customer service was cited by 27% of German and 24% of American companies as the method of choice. Last but not least, companies in both countries are focusing on technical innovations: 27% of German companies and 25% of American companies (also) want to focus on these in order to overcome the crisis. Almost a quarter of the German companies surveyed (24%) also want to score points by making changes and improvements to existing products - in the USA, this figure is only 14%.

Industrial Internet of Things on the rise

Companies are using various technologies to gain a competitive advantage. In Germany, the Industrial Internet of Things (IIoT) is mentioned by a wide margin, with 47% of companies using it, compared to only 32% of companies in the USA. Big data, on the other hand, is used by 33% in both countries. Germany is also well ahead of the USA with 22% when it comes to the use of artificial intelligence (35%). These technologies are evidently not only a fundamental advantage for the respective business, but also in the current situation in particular: of the companies in Germany that use one or more of the technologies listed, 95% believe that this would help their company in the crisis. In the USA, the figure is 99%.

Pay-per-use business models are becoming increasingly popular

A complete change to their own business model was an option for only a few of the companies surveyed: in Germany, this only applied to 8% of respondents, compared to 16% in the USA. However, the majority of respondents recognized that new business models such as pay-per-use models ('equipment-as-a-service') can represent an advantage for both the supply and demand side in the current crisis: In Germany, 26% of companies rate such business models as a major or even very major advantage, while 42% recognize at least a slight advantage. In the USA, 34% now see pay-per-use models as a major or very major advantage, while 29% see at least a slight advantage. Almost half of the companies surveyed also state that they use a pay-per-use model themselves (D:10%, USA: 18%), offer one (D:17%, USA: 15%) or even both (D:14%, USA: 9%).

Positive effects of easing coronavirus measures

The first easing of coronavirus measures, which was implemented in the course of May, is already showing the first positive effects: 8% of German companies have since seen a significant increase in demand for their products, 44% a slight increase. The figures are even better in the USA, where 14% have seen a significant increase and 45% a slight increase compared to the weeks before the easing of measures.