Elmia Subcontractor 2009
A long way up from the bottom
After a free fall, followed by hitting the bottom the recovery for the industry now seems to be on its way however slow and weak. This according to the market prognosis for 2010 by Teknikföretagen, the Association of Swedish Engineering Industries, presented at the fair. The employment rate is expected to continue to drop next year and there is a possibility that this will last until 2011.
– The drop in production for Swedish engineering companies will be around 30% this year and the number of employees will reduce by 12%. The prospect for 2010 is improved, but so far what we have seen are temporary effect from government stimulus packages and the recovery therefore risk being both weak and prolonged say Teknikföretagen chief economist Anders Rune and continues:
– Our assessment is that 2010 will give an increase in production by a couple of percent but this will not be enough to change the trend in number of employees.
The market prognosis shows that the global market will improve mainly for companies producing durable consumer goods. Just as the drop was led by consumers so will the recovery be.
– Geographically it is much the same. The market will recover first in USA but will be restricted by the consumers’ limited resources and the enormous bill to be paid for the stimulus packages, says Anders Rune.
For more investment dependent companies the outlook is a bit more gloomy, meaning that for the machining industry in Sweden the production will continue to drop even in 2010.
– The outlook for 2010 is overall positive but the recovery will be limited and prolonged, concludes Anders Rune.