German rubber & plastics machinery industry ‘about to turn a corner’ 

Frankfurt, Germany – The German rubber & plastics machinery segment has seen a strong rebound in demand in recent months, following a Covid-induced downturn in the early months of the year, according to the VDMA.

The negative trend in sales and incoming orders “already flattened out in mid-2020”, industry association said in an 11 Dec report, noting a positive orders-development since September.

Over the 10 months to October, VDMA said incoming orders were only 3% below prior-year levels.

"The September and October months contributed significantly to this", said VDMA chairman Ulrich Reifenhäuser.

In September, the industry established a 13% year-on-year increase in incoming orders, while October saw orders on the books doubling compared to a year ago, Reifenhäuser noted. 

"This means the German plastics and rubber machinery industry is about to turn the corner", said Thorsten Kühmann, managing director of the VDMA trade association. 

The figures, he said, show that companies have adapted to the challenges over the course of the pandemic. 

“Business is up and running again", Kühmann he added.

According to VDMA figures, the export of rubber & plastics processing machinery remained weak until May 2020, but saw a “catch-up effect” from June.

“The positive trend allows both the VDMA and machinery manufacturers to look ahead more optimistically again,” the report noted. 

Despite a pick-up in order books, VDMA expects the segment's overall sales to come in around 10-15% below the 2019 level this year. 

According to VDMA, revenue for the first 10 months of the year was 14% below the previous year. 

The association anticipates sales to increase by 5% and 10% in 2021 and 2022 respectively, meaning that the sector “will likely return to its pre-crisis level of 2019” by 2023.