German machinery, forecasts revised downwards

The plastics and rubber machinery industry continues to experience challenging times, with the latest figures for incoming orders and sales also being in line with the recent slump in demand.

"We still have to wait a little longer for the turnaround", explaind Ulrich Reifenhäuser, Chairman of the Board of the Plastics and Rubber Machinery Association. "From January to August, incoming orders are still showing a decline of 16 percent compared to the previous year. The weak demand is affecting all markets equally - but the European domestic market in particular. Major markets such as China and the US are also weakening considerably, although we are witnessing individual glimmers of hope at a lower level in Mexico and India."

Due to the fact that all existing orders have now been processed, the slump in orders is now also directly reflected in sales figures. From January to August, these were 7 percent down on the previous year. "This means that we have to revise our forecast downwards for the current year. The expected lowest point in terms of incoming orders has not yet been reached. We have to be prepared for a 10 to 15 percent drop in sales this year," explained Thorsten Kühmann, Managing Director of the VDMA Plastics and Rubber Machinery Association.

Orders could improve somewhat towards the end of the year, as the first central banks are currently initiating interest rate cuts, which will subsequently boost the capital goods sector. "However, due to the lag in production, it will take until the middle of next year for the positive impetus to be reflected in sales. For 2025, we therefore anticipate a sales growth of between 0 and minus 5 percent," Kühmann stated. "Just in time for the K year, the downward trend is calming down, and companies in the plastics and rubber machinery industry can look forward with confidence to a successful K 2025."