VOA survey: Surface finishing industry sees mixed economic situation

The economic situation in the surface finishing industry is currently viewed by the sector as rather mixed. This was the result of a recent survey conducted by the VOA among its member companies.

The German Surface Finishing Association (Verband für die Oberflächenveredelung e. V. - VOA) has been conducting regular surveys among its members on the state of the surface finishing industry for several years now. In this way, it quickly obtains valid figures to create a meaningful database and then draws an up-to-date picture of the economic situation of the member companies. The association compares the results with those of previous years. The results of the most recent survey are now available. Fortunately, some of the VOA member companies can look forward to a more positive development in 2024 than initially expected, but most still see their current situation as mediocre to negative. In addition to geopolitical risks and new challenges on international markets, rising non-wage labor costs, excessive energy costs, excessive bureaucracy and internationally uncompetitive tax burdens are having a negative impact on Germany and its economy. The surface finishing sector is moving in line with German industry. It is to be hoped that the future German government will tackle its tasks in an objective, energetic and courageous manner in order to relieve the burden on companies and strengthen the economy again.

Assessment of the company's development

The figures from the latest VOA survey speak for themselves. At the end of the second half of 2024, 47% of the ordinary members participating in the survey rate the development of their company as mediocre, 41% as negative. Very positive or positive opinions are few and far between at 6% each. Compared to the results from the first half of the year - 27% positive and 27% mediocre, 47% negative - the figures for 12% of VOA member companies were better than expected, while 15% were slightly worse than expected.

A detailed look at the industry: companies' capacity utilization is currently at 68% (March 2024: 71%). It fell by 16% on average, marking the sixth consecutive decline. In comparison: in 2021, the average capacity utilization was still at 90%. Turnover fell at 71% of companies, on average by 13%. It only remained the same for 23% of VOA members and increased for 6%. The negative trend since 2021 is also clearly evident here, as only 11% of companies reported a decline in turnover at that time. In terms of orders received in 2024, 71% also noted a decrease of 15% on average compared to the previous year. 29% stated that orders had remained the same. Three years ago, only 6% of member companies noticed a decline.

Energy price trend and shortage of labor/skilled workers limit production

Despite a decline of -27% since March 2024, 53% of the companies surveyed cited the energy price trend as a factor in their reduced production. They have a significant impact for 59% (+ 1% since March 2024) and a moderate impact for 41% (+ 20% since March 2024). At least none of the companies currently see the energy price trend as a threat to their existence (-7% since March 2024). The number of companies that feel strongly affected by the current high prices has fallen by 19% since 2021. This development may be related to the fact that VOA member companies are looking for solutions to reduce their dependency in light of the high cost of electricity and gas. 53% of ordinary members now state that they use energy they generate themselves. In 2021, the figure was only 9%.

In second and third place among the reasons for limited production are the shortage of labor and skilled workers at 47% (-13% since March 2024) and - new - sick leave at 35%. Although the shortage of labor and skilled workers is still a high priority for VOA member companies, it is no longer as important as before. This is presumably in relation to the ever-decreasing order situation and, as a result, the decreasing relevance of recruiting employees and hiring temporary workers. Unfortunately, the poor situation also led to 12% of companies making redundancies for operational reasons for the first time since 2022. A small glimmer of hope: 53% of VOA member companies are still training apprentices and plan to do so in the future. This means that the surface finishing industry's commitment to training young talent remains high. Fortunately, the figures have been rising steadily since 2021 - when only 29% were training apprentices.

VOA represents the view of the surface finishing industry

Both anodizing and coating companies as well as one paint stripping company took part in the current survey in November 2024. The majority of VOA members - 88% - work for the construction/architecture sector, but compared to the last survey in spring 2024, a decline of 5% can be observed, parallel to the general construction crisis. The automotive sector has been hit even harder, with a drop of 18% to 35%. In contrast, the mechanical engineering sector remains relatively stable at 59% (+6% compared to March 2024).

The VOA's articles of association state that its task is to protect and promote the common interests of its members in the economic and technical fields. The association contributes the views of the surface finishing industry to the political debate at both national and European level, as important political decisions are made in Berlin and Brussels for the German economy and therefore also for VOA member companies. The association receives support for its tireless commitment above all from its umbrella organization vbw - Vereinigung der Bayerischen Wirtschaft e. V. and thus also from the Confederation of German Employers' Associations (BDA) and the Federation of German Industries (BDI) as well as at European level from the European Association for Surface Treatment on Aluminium (ESTAL). (OM-12/24)

Contact

Verband für die Oberflächenveredelung von Aluminium e. V. (VOA)
Haus der Bayerischen Wirtschaft
Max-Joseph-Str. 5
80333 München (Germany)
Phone: +49 89 / 5517 8670
Email: info@voa.de
www.voa.de

About the VOA

As a trade association, the Verband für die Oberflächenveredelung von Aluminium e. V. (VOA) forms the industry network of companies in the surface finishing of aluminum and other materials and promotes the economic, political and technical interests of its members at national and international level.

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