Stable growth depends on supportive policies
Orgalime estimates that the engineering industry’s turnover in the European Union should reach in nominal terms some €1800 billion in 2013, slightly lower than in 2012. The year 2013 started off poorly, with the European engineering industry continuing to contract, as in the fourth quarter of 2012. Despite the improvement of confidence indicators in 2013, the European engineering industry did not manage to achieve growth. For the second year running, our industry showed a slight contraction in turnover of approximately 1.8%.
Consequently, employment too decreased by 1.1%, not repeating the growth that had been seen the previous year. Nevertheless, this is smaller than the decrease in production and can be partly attributed to the necessity to keep up with the internationally determined productivity growth and to the scarcity of skilled personnel. In 2014 employment is expected to stabilise.
Commented Sandro Bonomi, President of Orgalime, “For 2014, economic forecasts and forward-looking surveys expect an upturn in worldwide and European economic performance. Orgalime economists foresee modest growth of around 2.1%, which is an improvement, but this is still below the long-term average annual growth in our industry of around 3%.
This can be attributed to the uncertainties and downward risks for the European engineering industry, such as:
* high public and private debt levels in the Eurozone
* uncertainty about the Chinese economy and its possible slowdown
* low inflation and the possibility of a Japan-style deflation scenario
* concerns about the political situation in Europe following the instability in Ukraine and its consequences on trade relations including with Russia, a significant trading partner for the engineering industries”.
Major forecasts expect a further increase of global and European economic growth in 2015. Therefore further improvement of the economic performance of the European engineering industries is a clear possibility.
Concluded Orgalime Director General, Adrian Harris “The current recovery is very modest and uneven among sectors and countries. As industry is the cornerstone for a sustainable long-term economic growth, it is to be hoped that politicians on the European and national stage continue their newfound supportive approach to the manufacturing industry and that we will see the political commitments made translated into action, with the resulting growth in the economy and jobs. Our industry is moving forward fast at the level of technology and we believe in our future as an industry. Let’s make sure it happens in Europe.”
Further information:
Mr. Jukka Palokangas, chief economicst
+358 50 40 750 5469
