Injection molding machine builder Engel Austria GmbH is taking a look at back-to-back annual gross sales declines of 20 %, partly as a result of automotive manufacturing slowdowns brought on by the pandemic exacerbated different issues in that market.
The 75-year-old firm noticed gross sales of 1.three billion euros for its 2019-20 fiscal 12 months that led to March, CEO Stefan Engleder mentioned at an Oct. eight digital information convention.
“The outlook for this fiscal 12 months, as we’re half method by way of, we estimate will decline once more by roughly 20 %,” Engleder mentioned.
Firm officers mentioned machine orders from automakers had already slowed due to doubts about future energy prepare ideas in addition to uncertainty in regards to the fallout from the Dieselgate scandal, the place automobiles had been rigged to cross emissions assessments.
“Funding has been held again by the OEMs as a result of they’re nonetheless threatened with excessive penalty out of the diesel scandal,” Chief Gross sales Officer Christoph Steger mentioned. “And there is overcapacity in manufacturing amenities all around the world concerning automotive. We do not see a really close to restoration when it comes to elevated market demand for merchandise that assist the manufacturing of automobiles and vehicles.”
The family-owned enterprise based mostly in Schwertberg, Austria, additionally noticed decreased machine gross sales to the teletronics business as a result of customers are hanging on to their telephones and televisions longer.
Nevertheless, Engel officers mentioned packaging, medical and technical molding are proving to be secure and rising markets.
“The technical molding business combines infrastructure, toys, house home equipment and instruments. It has remained comparatively secure in its demand and it has turn out to be right now the largest share in Engel’s portfolio,” Steger mentioned.
The stay-at house development helps, he added.
“It is most likely not solely a development however an obligation. When staying at house individuals begin do-it-yourself tasks and purchase instruments and different merchandise,” Steger mentioned.
The packaging market not solely stays secure for Engel by way of the COVID-19 disaster, the CSO mentioned it highlights the vital contribution of plastics with regard to hygiene and the supply of products.
The continued public discourse about plastics hasn’t been very productive, he added.
“We name it plastic bashing, not as a result of we do not see the issues plastics are inflicting in the environment, however mainly as a result of all the things is blended up,” Steger mentioned. “There is not any goal or constructive dialogue ongoing. It is towards a bashing motion.”