VDMA: Machinery sales forecast to drop 10-15% for 2024
The German plastics and rubber machinery industry continues to experience a decrease in orders and sales with recent slump in demand, reported VDMA Plastics and Rubber Machinery.
Incoming orders and sales of plastics and rubber machinery remain low. (Source: VDMA)
From January to August, incoming orders showed a 16% decline, compared to the previous year.
The weak demand is reflected in all markets equally, with the European domestic market in particular. Major markets such as China and the US are also considerably weakening. On the other hand, markets in Mexico and India have a slight hope.
Due to the fact that all existing orders have been processed, the slump in orders is also directly reflected in sales figures. From January to August, these were 7% down on the previous year.
Thorsten Kühmann, Managing Director of the VDMA, suggested that with these figures, the industry has to revise the forecast downwards for this year and to be prepared for a 10-15% drop in sales in 2024.
Orders could improve 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,” stated Kühmann.
