ZVO reports on the economic situation in electroplating and surface technology
After two consecutive years of losses, the electroplating and surface technology sector has recovered. However, in view of the continuing adverse circumstances, the outlook for the future remains worrying, as Walter Zeschky, Chairman of the Board of the German Surface Technology Association (ZVO), emphasized at the Surface Technology Germany trade fair.
In 2021, the 258 ZVO member companies with a total of 20,375 employees (contract finishers, coaters, piece galvanizers, raw chemicals, process, equipment and accessories suppliers, institutes and service providers in the electroplating and surface technology sector) generated sales of 2,243 billion euros. This is an increase in turnover of 10.8% compared to 2020, the first year of coronavirus. Despite staff shortages, rising procurement and energy costs, procurement problems and regulatory requirements (keyword REACH), 55% of ZVO member companies rated their current economic situation as good or very good, 37% as satisfactory and only 8% as poor in the annual ZVO member survey (survey period January 31 to February 28, 2022).
However, the war in Ukraine is leading to further noticeable impairments in the electroplating and surface technology industry and among ZVO members - in addition to the direct and indirect corona-related effects that have not yet been fully overcome. Developments in the energy sector were already worrying before the outbreak of the war, and this situation has worsened. The price increases are continuing in the raw materials sector. Even though companies in the electroplating and surface technology sector are reporting a stable situation, there are still a number of challenges to overcome, such as the implementation of cost increases due to exploding energy and raw material prices on the market. In addition to the threat of a gas shortage, chromic acid, PVD plastics and control and automation technology assemblies are only available at extremely high prices, if at all. As a result, the entire electroplating industry is currently operating on sight; it is not possible to plan a few weeks or even months in advance. Maintaining the supply situation has top priority, although this is becoming increasingly difficult. Cost trends, the end of which is not in sight, are forcing the operators of industrial and contract electroplating plants to take action. Temporary material or energy surcharges could be a solution to counter the severe distortions on the raw materials markets. According to the ZVO, a reliable outlook for 2022 is hardly possible in view of these challenges.