Nicolas Bunde

In the competition for market share, German manufacturers of machinery and equipment find themselves in a worse position, finds an ifo Institute survey. “In sales markets outside the EU, German manufacturers of machinery and equipment are facing fiercer competition, especially from China,” says Nicolas Bunde, an industry expert at the ifo Institute. The survey score for competitiveness fell to -14.3 points, down from -7.3 in April.

Expectations among German manufacturers of glass, ceramics, stone, and other nonmetallic minerals have dropped to their lowest level since 1991. In September, the ifo survey put this indicator at minus 62 points for this energy-intensive segment. “The gloomy mood in construction, skyrocketing energy prices, and uncertainty about the stability of gas supplies are making this segment more pessimistic than ever about the future,” says ifo industry expert Nicolas Bunde.

German manufacturers of machinery and equipment are increasingly short of skilled workers. In the July ifo Institute survey, 43.0 percent of participating companies in the industry reported a shortage, compared with 38.7 percent in April.

Business expectations for the next six months have fallen among manufacturers of machinery and equipment in Germany. The indicator plummeted to minus 23.3 points in June, down from minus 17.9 points in May, finds the ifo Institute’s survey. “The slump in expectations is likely due to ongoing material shortages and uncertainty about overall economic developments in light of Russia’s attack on Ukraine,” says Nicolas Bunde, an industry expert at the ifo Institute.