ZVO sees little improvement in economic situation for 2025
The German Surface Technology Association (ZVO) currently sees little sign of an improvement in the economic situation. In its economic forecast for 2025, the association anticipates a further decline in sales, with low sales growth only expected for 2026.
After the 2023 financial year was not very successful and 2024 was another difficult year for the members of the ZVO Industrial Coating Division, the downturn continues unabated for the third year in a row. Although the burden of energy costs has eased, they remain too high by international standards. Grid fees will become a permanent cost burden without any entrepreneurial influence. New investments will be postponed or canceled altogether. Investments that are made serve to increase energy efficiency and modernize existing plants. Large plants are no longer being used to capacity and cannot be operated profitably at present, which is why some companies would rather have many small, flexible plants than one large one. It is still possible to find suitable skilled personnel. There is currently no shortage of skilled workers. Temporary employment agencies are also able to offer workers again. However, FB members are using significantly fewer temporary workers than a year ago.
ZVO expects further decline in turnover in 2025
While expectations for 2025 were cautiously optimistic at the beginning of the year, the FB Industrial Coaters now expects a further decline in turnover of 15% on average, with some companies being hit even harder. Due to completely misguided political framework conditions and the persistently poor mood worldwide, the domestic customer markets continue to lack optimism and confidence. A similar picture is emerging in the Chemicals and Plants division, although the decline in sales is somewhat more moderate than in the Industrial Coating division. The overall view of the ZVO is also not very encouraging. Based on its turnover survey, the ZVO expects a further decline in turnover of between 6% and 10% for 2025. Not unexpectedly, the number of insolvencies, which have not affected the ZVO at all in recent years, is also on the rise. Since 2024, it has recorded a total of seven insolvencies, some of which were well-known and large companies. Decreasing liquidity among member companies is increasingly leading to delays in incoming payments. Payment plans are sometimes agreed in order to accommodate member companies that are in difficulties or experiencing liquidity bottlenecks. Nevertheless, an initial default summons had to be issued. There are signs of a streak on the horizon for 2026 - here the ZVO expects low sales growth of 1.5 percent, again based on its sales survey.