A VDMA flash survey in China indicates an improvement in the economic situation compared to the previous month. The transport situation in the country is also easing. However, a sharp drop in sales is still expected.
While the economy in Europe and the USA remains paralysed by the coronavirus pandemic, Production in China is slowly picking up speed again. A second recent survey conducted by the VDMA offices in China, which was answered by 118 member companies, shows a noticeable Improving the situation on the ground. At the beginning of March, 57 per cent of respondents rated the impact of the coronavirus pandemic as major, but this figure has now fallen to 46 per cent. On the other hand the proportion of respondents who rated the impact as rather low increased. view, from 3 per cent to 13 per cent.
Clear Relaxation is evident in the local transport sector. For 82 per cent of companies, the transport situation within China has improved. Deliveries from outside to China and from there to other countries are still difficult and the costs for this have risen, especially for air freight.
„Companies that produce for the local market and have a high degree of localisation now have a clear advantage,“ says Claudia Barkowsky, Managing Director of the VDMA in China.
The strong Transport restrictions and the delayed resumption of production after the Chinese New Year were still the biggest challenges for businesses four weeks ago.
Mobility of employees still limited
Significant Restrictions is currently available at the Mobility of service and sales staff. 73 per cent report serious or noticeable restrictions. And even among the Supply chains and incoming orders remain tense.
„There is still a veritable patchwork of measures when travelling within China. Customers are also not dealing with the situation consistently, allowing access one day but refusing it the next,“ reports Barkowsky.
With the Information on sales losses the picture is mixed. Were there Beginning of March 64 per cent of the respondents who Expect losses in the first half of 2020, are now 73 per cent. However, compared to the first survey, 18 per cent (previously 2 per cent) of respondents now stated that they were very unlikely to be affected by losses and 6 per cent even reported an increase in sales (March: 0 per cent).
„We hope this is a light at the end of the tunnel and not just a short-term effect triggered by a temporary boost from pent-up demand,“ says Claudia Barkowsky.
Entry ban brings new problems
The entry ban imposed in China since 28 March 2020 However, this poses new problems for machine manufacturers. The Commissioning of new production lines is often not possible without support from the headquarters, service technicians are needed and some of the foreign managers are not yet back in China.
„The travel ban can put companies under increasing pressure. The Customers in China are not waiting until the situation in the rest of the world has stabilised again. The People's Republic wants to Get the economy back on track as quickly as possible and local companies are pushing for a resumption of business,“ explains Barkowsky. However, a lifting of the entry ban is not in sight.
[infotext]The VDMA has been supporting its member companies on the Chinese market for over 15 years. The VDMA opened its representative office in Beijing at the end of 2004 and another one in Shanghai in 2006. With currently 14 employees, the association supports almost 900 companies in China[/infotext].Source: VDMA
