On September 11, 2020, the ZVO Chemicals and Plants Division met via video conference for its traditional autumn meeting. Overall, there were signs of a slight improvement in the business situation for the supplier industry's interest group within the ZVO.
The participants discussed developments over the past few months and the outlook for the coming year, particularly with regard to the impact of the coronavirus pandemic.
The development of the automotive industry, which continues to struggle with structural problems in addition to corona, has a decisive influence on the suppliers' business.
Plant engineering has remained relatively stable during the coronavirus crisis. Thanks to projects from the previous year, but also new projects, it was and is largely working at full capacity.
After a good first quarter, the Raw Chemicals division experienced a massive slump in sales of up to 50%, particularly in the surface business. There is currently a slight improvement. However, it remains difficult to predict how 2020 will end overall and depends in particular on the development of the coronavirus pandemic and any further restrictions. For 2020 as a whole, the member companies expect a decline of up to 40% compared to the previous year. An optimistic forecast for 2020 is around the same level as 2019.
After the slump in spring, process chemicals have also been showing signs of normalization and recovery since July/August, meaning that the year as a whole will close with a decline of 15% to 20%. The 2019 level is expected to be reached in 2021 or even 2022.
Businesses are concerned about the threat of customer insolvencies. However, payment morale is still rated as good.
Short-time working, which affected up to 60% of employees in all areas during peak periods, has now been ended at the majority of member companies of the Chemicals and Plants sector association.
