October 7, 2024 15:43

Amid a 16% drop in orders during the first eight months of the year, the VDMA Plastics and Rubber Machinery Association has revised its sales forecasts for 2024, predicting a decline between 10% and 15% compared to last year.

Once the backlog of orders has been cleared, the current slump in orders is now directly impacting sales, which have contracted by 7% between January and August. Moreover, according to the association, "the expected lowest point in terms of incoming orders has not yet been reached."

"We still have to wait a little longer for the turnaround," said Ulrich Reifenhäuser, Chairman of the Board of the Plastics and Rubber Machinery Association. "The weak demand is affecting all markets equally – but the European domestic market in particular. Major markets such as China and the U.S. are also weakening considerably, although we are witnessing individual glimmers of hope at a lower level in Mexico and India," he added.

Orders could improve toward the end of the year with a reduction in interest rates, a measure that would boost capital goods investments. However, due to the time required to produce the machinery, the positive effects on sales would only be visible by mid-2025.

"For 2025, we anticipate sales growth of between 0% and negative 5%," explained Thorsten Kühmann, managing director of the VDMA Plastics and Rubber Machinery Association. "Just in time for the K year, the downward trend is calming, and companies in the plastics and rubber machinery industry can look forward to a successful K2025 next fall with confidence."

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