Electrical industry

News aus der Elektroindustrie

12
Jan

The health consequences of the corona pandemic shaped the last year and thus also the economy and social life. Now that a vaccine is available, it is important that the number of new infections is sustainably reduced so that the recovery, which has already started in some cases, is not slowed down. At many companies, the order books are full again, almost as they were before the pandemic....

The health consequences of the corona pandemic shaped the last year and thus also the economy and social life - not only in one country but worldwide. Now that a vaccine is available, it is important that the number of new infections is sustainably reduced so that the recovery, which has already started in some cases, is not slowed down. At many companies, the order books are full again, almost as they were before the pandemic. Even industries such as tourism, hotels and restaurants see light at the end of the tunnel, and the discussion has already started whether "vaccinated" people should receive some kind of bonus over "non-vaccinated" people.

One thing is for sure; however, the world has changed dramatically as a result of Corona and will continue to change. Compulsory presence in the office, and intensive travel activities, especially abroad, are a thing of the past. The whole thing will be replaced by video conferences, webinars, digitally held meetings and press meetings. Catalogs and brochures are already available at many companies in the electrical industry, only online and no longer in print, and this means considerable cost savings.

As we wrote on December 3rd, 2020, the weak second quarter was followed by a surprisingly good third quarter with, as we now know, a more or less conciliatory end to the fourth quarter. Due to the availability of the corona vaccine, the recovery in the electrical sector could continue from the middle of the current year. Whereby there will be significant differences between domestic and foreign sales. Only from 2022 will the figures then show some consistency again, without probably reaching the level of the pre-pandemic years.

China: Has risen to become a superpower in recent years and everything is approached strategically and in 5-year plans. The project "Made in China 2025" leads directly to 2049, when the aim is to be the world's leading industrial nation on the centenary of the Communist Party. It is the goal of the communist leadership to become the No.1in the world and gigantic sums of money are being made available for this.

Just think of the “New Silk Road” project or, in Germany, the takeover of Kuka by the Chinese investor Midea in 2016, or Osram / Ledvance in 2015/2016.

It is the goal and the strategy of the Chinese investors to acquire specialist knowledge and innovative technologies (patents and know-how) in Europe and the U.S., for which they then lure "with the huge market that is now available to you". Small and medium-sized enterprises (SMEs) in particular are now on the shopping list, and they are now happy about the additional turnover (“We are now also in China”) and hardly realize that they are giving up their independence, whereby in the opposite case a complete takeover of a Chinese manufacturer by a foreign company is not possible at all.

And the investments affect not only Europe and the USA but also Africa. Among other things, they want to secure the huge reserves of raw materials there; and at the same time also trade, using the knowledge and components that were previously acquired in Europe or the USA, for example.

Africa: Not to be forgotten is the Pan-African Free Trade Area (AfCFTA) with 54 member states and 1.3 billion people, which came into force on January 1, 2021, due to Corona six months later than originally planned. The aim is to have tariffs and trade restrictions removed from virtually all goods and services, but there is still a long and arduous road to go. But forward-thinking companies could also benefit from one of the largest free trade zones in the world.

United States of America: As we regularly report in our industry news at electro-insider, large companies such as Eaton or Honeywell are in the process of expanding their sphere of activity.

The purchasing and marketing associations are working on taking over groups that strengthen the association as a whole with new services, e.g. sanitary or safety products, and give the new distributors a new home, e.g. AD in Wayne / PA

Traditional wholesalers like Wesco, Home Depot or City Electric Supply, continue to grow, with CES better known in Europe as City Electrical Factors (CEF) from the United Kingdom.

Much will of course depend on the newly elected President, Joe Biden, as to how he can now unite the country, even after the most recent incidents, e.g. the storming of the Capitol in Washington.

In one of the next issues, we will also talk about Europe, about India and the online trade, which is becoming more and more important, and thus represents a serious threat to the retail trade.

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In February orders surpassed last year’s level by 5.8%, as announced by the ZVEI in Frankfurt.

In February orders surpassed last year’s level by 5.8%, as announced by the ZVEI in Frankfurt.

At the beginning of the year incoming orders had fallen slightly again by 0.3%. German goods were most in demand by customers in the Eurozone, where orders were 14.3% higher than last year, whereas orders from third countries fell by 0.5%. On the home market there was a plus of 7.2%.

The turnover of the German electrical companies rose by 5.3% in February 2016 to EUR 14.4 bn.

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According to the ZVEI the turnovers of electrical companies in May 2015 fell 0.9% below last year’s figures at EUR 13.4 bn.

According to the ZVEI the turnovers of electrical companies in May 2015 fell 0.9% below last year’s figures at EUR 13.4 bn.

While domestic turnover went down by 6.7% to EUR 6.4 bn, foreign turnover rose by 4.6% compared with last year to EUR 7 bn.

Revenues from customers from the euro zone grew to EUR 2.5 bn  (+3.2%), and those with business partners from third countries to EUR 4.5 bn (+5.5%).

The business climate in the German electrical industry deteriorated somewhat in June of this year, with expectations for the coming 6 months having dropped off more in comparison with the assessment of the current situation.

35% of companies in the industry assess their current situation as good, 55% as stable and 10% as bad. At the same time 26% of the electrical firms assume that in the next 6 months business will improve, 67% that it will remain the same and 7% that it will decline.

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After two weaker months at the beginning of the year orders leapt up in March, as the German press agency reports.

After two weaker months at the beginning of the year orders leapt up in March, as the German press agency reports.

The industry also enjoyed an increase in turnover and production in the first quarter. Domestic orders went up by 22.1% and foreign orders rose by 14.0%.

In contrast to January and February the electrical companies’ production adjusted for price effects increased noticeably in March of this year, rising by 6.6% in comparison with last year. From January to March 2015 it exceeded the corresponding figure for last year by 2.2%.

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According to the ZVEI the exports of the industry climbed by 4.9% last year to EUR 165.5 bn, exceeding the existing all time high of EUR 159.9 bn from 2012.

According to the ZVEI the exports of the industry climbed by 4.9% last year to EUR 165.5 bn, exceeding the existing all time high of EUR 159.9 bn from 2012.

In December 2014 alone exports grew by 15.4% against the prior year to EUR 13.7 bn, the highest figure ever achieved for December.

It is China that the electrical industry has to thank especially for its export record, with exports to this country rising by 16.1% in 2014 to EUR 14.9 bn, making the People’s Republic the largest customer for German electrical exports for the first time. Furthermore, an absolute growth of EUR 2.1 bn made the absolute contribution of the Chinese business the largest to the electrical industry’s absolute export growth last year.

Russia dropped out of the top ten with a 22.4% decline in exports to EUR 4.2 bn. Additionally, the Russian business, which turned out EUR 1.2 bn lower than in 2013, was the greatest mathematical encumbrance to the industry’s export growth last year.

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