Like the entire German industry, the surface finishing sector is suffering from distortions caused by geopolitical risks, rising non-wage labor costs, excessive energy costs, too much bureaucracy and high tax burdens. Accordingly, 47% of the companies that took part in the current VOA survey rate their development as average and 41% as negative. Only 6% of member companies gave positive or very positive assessments. Compared to the results from the first half of the year - 27% positive and 27% mediocre, 47% negative - the figures for 12% of VOA member companies were better than expected, and 15% slightly worse.
Capacity utilization falls for the sixth time in a row
Capacity utilization currently stands at 68% (March 2024: 71%). It fell by 16% on average, marking the sixth consecutive decline. In 2021, the average capacity utilization rate was still at 90%. Turnover also fell at 71% of companies (average: 13%). It only remained the same for 23% of VOA members and increased for 6%. Here too, a negative trend has been clearly evident since 2012. 71% of respondents noticed a decline in orders. Orders have remained the same for 29%. Three years ago, only 6% of member companies noticed a decline.
Energy price development affects production
Despite a decline of -27% since March 2024, 53% of respondents cited the energy price trend as a factor in reduced production. It had a significant impact on 59% (+ 1% since March 2024) and a moderate impact on 41% (+ 20% since March 2024). At least none of the companies currently see the energy price trend as a threat to their existence (-7% since March 2024). The number of companies that feel strongly affected by the current high prices has fallen by 19% since 2021. This development may be related to the fact that VOA member companies are looking for solutions to reduce their dependency in light of the high cost of electricity and gas. 53% of members now state that they use self-generated energy. In 2021, this figure was still at 9%.
Noticeable shortage of skilled workers and sickness rates
In second and third place among the reasons for limited production are the shortage of labor and skilled workers at 47% (-13% since March 2024) and - new - sick leave at 35%. Unfortunately, 12% of companies also made redundancies for the first time since 2022 due to the poor situation. However, 53% of VOA member companies are still training apprentices and plan to do so in the future.