Price increases of components and raw materials, alongside shortages of such on the supplier side, are continuing to heavily challenge the machinery manufacturing industry, according to industry body CEMA’s latest market trends report. The report went on to say that more than half of the companies it surveyed are planning a temporarily production stoppage due to a shortage of certain parts in the coming four weeks.
Price increases of components and raw materials, alongside shortages of such on the supplier side, are continuing to heavily challenge the machinery manufacturing industry, according to industry body CEMA’s latest market trends report.
The report went on to say that more than half of the companies it surveyed are planning a temporarily production stoppage due to a shortage of certain parts in the coming four weeks.
Each month, CEMA (the association representing the European agricultural machinery industry) carries out a survey within the European industry with
coverage of all major sectors to look at the current and future business situation.
The association’s April report shows that only 14% of the survey participants expect their company’s order intake to increase, while 45% expect it to decrease in the coming six months.
CEMA’s latest market trends report outlines that almost half of the companies it surveyed across Europe expect new machinery orders to decrease in next six months.
Dealer stock
Against this backdrop, CEMA says that dealer stocks of new machines have been significantly reduced over the past months in nearly all markets across Europe.
Likewise, it says that dealers used machinery stock has been generally cleansed also.
However, while industry representatives could previously assume that dealer stocks had fallen below their optimal level, which would result in further orders, uncertainty is now emerging with regard to some markets.
The association says that confidence levels have fallen not only for Eastern Europe, but also for almost all EU-13 countries.
April report
The April report shows that the general Business Climate Index for the Agricultural Machinery Industry in Europe has continued to fall after its sharpest drop since the crash in the wake of COVID-19, but is still holding at a positive level.
In April, the index decreased from 30 to 20 points (on a scale of – 100 to +100).
Despite this, a total of 85% of participants are happy with current business, albeit down from 94% in February.
Meanwhile, just 35% of participants expect their company turnover to grow in the next six months, down from 54% in February.
The associations April report shows that only 14% of the survey participants expect their company's order intake to increase in the coming six months.
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