As reported by Zentralverband Oberflächentechnik e.V. (ZVO), after a satisfactory sales performance in the first quarter of 2024, the business development and business prospects of the ZVO's Chemicals and Plants division deteriorated noticeably over the course of the year. Accordingly, the autumn meeting of the division on September 11, 2024 was dominated by discussions on the difficult situation.
Chemicals: no turnaround
In the chemicals sector, business is currently more than five percent down on the previous year on average, and no impetus for a turnaround is expected by the end of the year. In the plant and equipment sector, capacity utilization is still good, but the order backlog is declining noticeably. New projects are being concluded very sporadically and, if at all, only after very lengthy discussions.
Outlook for the year 2025
The outlook for 2025 is very cautious. Hardly any impetus is expected before the elections next year. The specialist area member companies would already be satisfied with business at the level of 2024.
Industrial coaters record slight increase in 2023
While half of the members recorded significant declines in turnover in 2023, the other half recorded an increase in turnover due to higher prices. However, volume growth remained well below sales growth. On a consolidated basis, the specialist area members recorded a slight increase in turnover in the low single-digit range in 2023.
Expectations for 2024: minus 15 percent
The majority of specialist area members expected a downturn in the second half of 2024 in particular. This assessment proved to be correct, as the survey on the economic situation at the autumn meeting showed. Turnover has fallen dramatically in some cases since June 2024. The Industrial Coating specialist area expects an overall decline of 10 to 15 percent in 2024.
Energy costs and investments
The burden of energy costs has reduced further, but energy costs remain too high by international standards. Grid fees, which now account for up to 50% of total energy costs, have established themselves as a permanent cost burden without any entrepreneurial influence. New investments are being postponed or have been canceled altogether. Investments are being made to increase energy efficiency and modernize existing systems.
Skilled personnel available
In the personnel sector, the pressure to find suitable specialist staff has eased. Temporary employment agencies are also able to offer workers again. However, high wage settlements have led to a further increase in personnel costs for both in-house staff and temporary workers.