Orgalim releases Economics & Statistics Report - Spring 2022
In these uncertain times, timely economic indicators are particularly valuable to help European industry and policymakers navigate, adjust and build resilience. Orgalim recently released its Spring 2022 Economic & Statistics Report, analysing the latest data and forecasts for Europe's technology industries, spanning the mechanical engineering, electrical engineering, electronics and ICT, and metal technology branches. The report highlights the marked impact of the war in Ukraine on sentiment and the outlook for our industries.
We can currently look at 2022 from two angles. In the rear-view mirror, we see well-filled order books and continued dynamic growth towards the end of 2021 and the beginning of 2022. But looking ahead shows us a completely different road than we had hoped for 2022. The war in Ukraine and further prices rises have once again aggravated the situation.
This goes beyond the direct effects of the war in Ukraine, which include the consequences of the sanctions on the export and import side. Europe’s technology industries are highly integrated upstream and downstream, which means they are also very susceptible to indirect effects that are felt when demand or supply sectors fail. In addition, there are other indirect consequences of the war, which have led to an enormous increase in the prices of energy, industrial metals and other raw materials.
And the war alone is not the only thing that throws the market off balance. The corona pandemic continues to have a negative impact on the free movement of goods in our sectors. Covid-related restrictions, especially in China, are aggravating supply bottlenecks. At the time of writing, Shanghai is in a lockdown, and there is a risk of port closures and production halts in China.
In short: there are many reasons to believe that Europe’s technology industries will need to continue to adapt to volatile times.
- Strong growth in 2021 as the Orgalim industries saw healthy recovery
- Solid 3.8 % turnover growth forecast for 2022 but major downside risks
- War in Ukraine takes toll on our industries – directly and indirectly
- Further price increases and supply disruption aggravating the situation
- Employment expected to grow 1.4% this year