The CEMA (European Agricultural Machinery Association) has released its latest market trend report, which indicates that due to price increases of components and raw material the machinery manufacturing industry is facing major challenges. According to the body, more than half of the companies surveyed are planning to temporarily stop production due to a shortage of certain parts in the coming four weeks.
CEMA conducts surveys within the European industry each month, which covers all major sector and looks at the current and future business situation. The association’s April report shows that only 14% of the survey participants expect their company’s order intake to increase, while 45% expect it to decrease in the coming six months.
The report reveals that dealer stocks on new machines have been significantly reduced over the past months in nearly all markets across Europe. This has led to uncertainty in the market, with industry representatives saying that dealer stocks have fallen below optimal levels. The association says that confidence levels have fallen not only for Eastern Europe, but also for almost all EU-13 countries.
The April report shows that the general Business Climate Index (BCI) for the agricultural machinery manufacturing industry in Europe has continued to fall since the wake of COVID-19, but is still holding at a positive level.
CEMA says that the April index decreased from 30 to 20 points. Despite this, a total of 85% of participants are happy with current business, although it is down from 94% in February.