Market News Lack of orders is a major concern for tool manufacturers

Editor: Steffen Donath

Manufacturers of precision tools are increasingly feeling the effects of the corona pandemic. Closures and an stark decrease in orders has a strong impact on the industry.

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How the situation will develop, remains to be seen.
How the situation will develop, remains to be seen.
(Source: Martin Sanchez (Unsplash))

“In large parts of the tool industry, demand is falling significantly as a result of the measures to contain the corona pandemic. In particular, the plant closures of major customers from the automotive industry are having a direct impact on our companies,” says Stefan Zecha (VDMA). “Our forecast for 2020 (minus 6 %) is therefore unfortunately no longer valid. We entrepreneurs are currently facing the enormous challenge of ensuring the health of employees, customers and business partners and keeping our companies liquid and running in the long term. The manufacturers of urgently needed parts for medical technology need to continue to be supplied, especially now,” he adds.

Almost all precision tool companies are currently still able to deliver because they have made their value chains crisis-proof. But not all companies will be able to bridge the time until the global economy and the majority of their customer industries are back on track with situation-related rush orders alone. The starting situation in the three sub-sectors of the precision tool industry is different anyway. While the metal cutting and clamping tools industry was still able to produce at a high level last year, a large part of the toolmaking industry has been struggling for some time now. “My appeal therefore goes out to politicians and financial institutions to do everything possible quickly so that as many parts of the economy as possible can continue to function in the Corona crisis. Jobs are attached to every single order and, in the case of medical technology applications, often the life of a sick person,” appeals Zecha.