Federmeccanica: 60% of companies expect a drop in production, 4% risk of a stop

The rise in the prices of raw materials and energy products weighs on the metalworking industry: 93% of the companies participating in the Federmeccanica survey in the fourth quarter recorded further increases in the prices of raw materials while the percentage of those declared supply difficulties. In 41% of cases, the high costs of raw materials and energy led to the reorganization of work and / or production activities. Not only. Over half of the companies are feeling the effects of the Russian-Ukrainian conflict: 60% foresee a contraction in production, while 4% run the risk of having to stop it. “Once again we are talking about the economy with a war in progress. Once again, our thoughts go to the people affected by this great tragedy ”said Diego Andreis, Vice President of Federmeccanica. “There would be the conditions for a revival of our sector, we perceive a potentially positive tension in the markets, but then – he explains – those unforeseen and unpredictable difficulties that slow down the recovery are confirmed or set in motion, also putting the future of many companies at great risk” The trend in raw material prices continues to have repercussions on producer prices and, in fact, at the beginning of the year the growing dynamics observed throughout 2021 continue. In the engineering sector, which is the largest user of metals, in March producer prices increased by 15.4%. These dynamics are having a negative impact on the competitiveness of many companies and are strongly reducing profit margins further eroded by the increase in energy costs. More than 60% recorded a decrease in mol and 14% those who declared a contraction of more than 25%.