"Medium-sized industries see a glimmer of light on the horizon. But nothing more - the costs are too much of a burden." This is how the German Steel and Metal Processing Association (WSM) assesses the economic situation in light of the latest preliminary figures from the Federal Statistical Office. They show an increase in production growth of 10.4% for 2021 compared to 2020 - but also a decrease of 3.5% compared to the year before the crisis. Whether the battered automotive suppliers in particular will soon be able to make up further points is - in addition to overcoming the supply bottlenecks - a question of cost: rising material, energy and logistics costs as well as growing climate protection requirements are slowing down the catch-up process. "We urgently need political support here in order to maintain the international competitiveness of the manufacturing industries and their jobs," the WSM therefore demands.
Stable supply of materials and parts could further increase production growth
In 2021, it was mainly material bottlenecks that halted production growth - according to the WSM, the order situation and capacity utilization would otherwise have enabled a larger increase. Whether, when and how supply chains will ease in 2022 is still unclear, but car manufacturers are cautiously optimistic for the second half of the year. This glimmer of light raises their suppliers' forecast for the next six months by four percent. If the supply of materials and parts stabilizes, WSM believes that an overall increase in production of around seven percent could even be achievable for 2022.
Additional burdens hamper positive development
However, the glimmer of light on the horizon will fade if politicians let companies down. This is because new clouds have long been gathering in the supplier sky: extremely rising input material, energy and logistics costs on the one hand and the demand for a rapid transformation to CO₂-neutral production on the other. Even if the economy develops positively, these additional burdens will become a stumbling block for the mostly medium-sized companies without political help.
Transformation: "Maintain the international competitiveness of the manufacturing industry"
"The German government must support the far-reaching adjustments relating to the transformation across all stages of the value chain. Just as we are calling for with the Carbon Border Adjustment Mechanism (CBAM)," emphasizes WSM Managing Director Christian Vietmeyer. The WSM expects German politicians to support this at European level in order to protect the international competitiveness of local companies.
