VDMA German plastics and rubber machinery sales to slip less than previously expected this year
German plastics and rubber machinery manufacturers expect sales to fall 2% this year to €6.1 billion, a smaller decline than first forecast, the German engineering federation VDMA said.
Suppliers predicted the market to rebound in 2013 with a 7% rise in sales to around €6.5 billion. Ullrich Reifenhäuser, head of the plastics and rubber machinery association at the VDMA said, “As late as October last year, the association had predicted sales to drop by 7 per cent in 2012. However, business performance in the second half of last year and in the first few months of 2012 proved better than anticipated, allowing us to revise our forecast.”
The association expects sales in Germany to be buoyant through next year. Wage rises and a positive labour market trend have stimulated private consumption and hence demand for consumer products, Reifenhäuser said. “Underpinned by low interest rates, investment activity in Germany continues to be brisk. We expect the domestic investment climate to remain positive in 2013. Many German firms will reach capacity limits and are increasingly planning to invest for expansion”.
Thorsten Kühmann, the association’s managing director, muted hopes for strong sales outside Germany. “Based on the high levels of investment worldwide in both 2010 and 2011 and weak growth in most of Western Europe, we expect foreign sales to decline in 2012.”