Corona-crisis: During engineering it is simply not economic

The Corona pandemic is hitting the industry hard, it has had problems. Hundreds of thousands of employees working that now threatens to Short. And as it goes on, no one dares to say.

The Coronavirus is from the Wacker Neuson reached in February. Since the German group was forced to close its production in China. From the epidemic-a pandemic was. “Our factory in China near Shanghai was closed for the whole of February,” says CEO Martin Lehner. Like many others, he could not imagine at the time that the Virus would soon put the whole world to a standstill. “I’m just Worried that the supply of our European plants is restricted.” At least, this proved to be unfounded. “China is driven very quickly,” says Lehner. Also the own plant back to work without restrictions.

While the situation relaxed in the far East, seized the pandemic in other countries. The example the company shows how interwoven the world economy. “The Shutdown in Italy has affected our plants in Europe is massive,” says Lehner. From the North of the country, the group applies hydraulic components and axles. At the end of March, Wacker Neuson presented the production in Austria, Germany and Serbia for two to three weeks. In April, the production performance sagged below 50 percent of the usual level.

The exchange-listed company with a good 6,000 employees, produces hand-guided equipment such as rammer, with which the soil is compacted, vibration plates and compact equipment such as excavators, wheel loaders and rollers up to 15 tons for construction, agriculture and municipalities. It sells its products under the brands Wacker Neuson, Kramer and Weidemann. In the first quarter of 2020 behind the pandemic has left a mark. Sales fell by 5.6 percent to nearly 411 million euros, operating profit of just under 6.5 percent to 29 million euros. “At times construction sites were set up so that the machines could not be delivered.” The Transport across borders increased temporarily. The forecast for 2020, the group has collected. And for 2019 there should be now no dividend, in order to strengthen the liquidity. Lehner wants to do without government loans and grants. It runs reasonably for Wacker Neuson yet.

Some markets are severely affected, others run almost back to normal, it is called. In the entire German mechanical engineering industry new orders dropped in March compared to the year-on-year in real terms by nine per cent. A single number what the supply 6500 firm with more than a Million employees are, however, inadequately, the range is diverse. Pumps, paint finishing systems, machines for the machining of metal and wood, for car and chemical industries, for construction and agriculture. “There are companies that come quite well through the crisis, for others it runs really bad,” said Martin Welcker, President of the industry Association VDMA and head of the Cologne-based Schütte-group. Well it runs for companies such as the medical technology company Dräger or the manufacturer of logistics systems, dealer supply Online. “Hit hard” has Welckers own company with almost 600 employees, and 123 million euros in sales in 2018. In April, the order intake was at ten percent of the previous year’s value. “That’s pretty creepy,” says Welcker. 300 people he has sent into short-time work. The year 2020 will finish chute with loss.

Even before the pandemic, the trade-weighted dispute between the United States and China, the business

Even before the pandemic, the trade-weighted dispute between the US and China in the shops. Some companies suffer from the shift to electric mobility. Even at the beginning of March, the engineering industries Association is expecting a fall in production in 2020 by five percent. The forecast is no longer valid, a new there are. “Mechanical engineering is a trailer,” says Welcker: “you Only need to recover our customers before they order, and other machines. The crisis will accompany us until well into the year 2021.” For hundreds of thousands of Employees in the engineering companies have shown short-time work.

“For this crisis, there is no experience,” says Welcker. And there are, in his view, less options to boost the economy. The measures taken by the German government in the beginning, don’t like to criticize Welcker. The “exit strategies” to like him less. “When the many parts of the economy drags on revival over x months, we will be fighting eventually for Survival,” says Welcker. A number for the x he doesn’t like to call it. Welcker Worries. Thus, the foreign trade law is to be sharpened, as it is formulated by the Federal Economics Minister, Peter Altmaier, with a view to German security interests, for example when it comes to vaccines, or critical infrastructure. Such Fears Welcker referred to as “hysterical”https://www.sueddeutsche.de/.”There is no indication that the Chinese will take over in a Roll-over command, German companies,” says Welcker.

He goes even further. Germany wanted to keep its industrial base, was foreign capital in the future is more important than ever. Long test times for Acquisitions and investments scare away investors. A reversal of globalisation is for Welcker pretty much the worst thing he can imagine. Welcker also warns of the consequences of the current measures, because they suggested that the state should and could. on backstops, loans and other financial assistance all rules to the detriment of personal responsibility”The AIDS of today are the taxes of tomorrow,” says Welcker. State aid he does not want to take for his group. But like many things these days, this Expression is only a snapshot.

Wacker-Neuson-chief Lehner goes on view In the European plants, the production’s going up again. For about 60 percent of the 2700 employees in Germany, the group has signed short-time work, is used currently for the 900 employees. “We will evaluate the situation week to week.” Lehner worked for a week from its location in Linz, the largest production plant. In the Headquarters in Munich, there was only a skeleton crew. Even with investors Lehner video-conferencing has led. “In the past, one is, two days after Milan and London flown and talked in an hour,” he says. The learned, he believes, many companies now, that can be a lot to talk about on the phone.