Revenues Up – Orders Incoming Down
Statistic Evaluation for 3rd Quarter
After a slight increase in revenue during the second quarter, the sensor industry was able to generate a rise in turnover in the third quarter, in fact an increase of two percent. While consumer goods and national budgets increased, export-dependent industries were troubled by the global economic changes.
Although automotive and engineering always were reliable for their economic growth, they now experienced a drop and thus a cloudy outlook for the automotive supplier industries – including sensors and measurement.
“At a first glance, you could get the impression that we’re dealing with an inconsistent seasonal effect or statistical oscillations,” says Thomas Simmons, the AMA Association’s general manager, about the current sensor industry statistics. “Two lapsing revenue quarters were followed by two slightly rising quarters. The expectation for the last quarter of 2019 is a slight turnover decrease of one percent. This is based on a slump in our three customer industries, automotives, mechanical engineering, and electrical engineering. The next important customer market for our members is medical technology. This branch of industry is not as economically vulnerable and thus can partially absorb the negative impact.”
Sensors and Measurement Revenue Boost in Second Quarter
AMA Association reports rise in turnover
The AMA Association for Sensors and Measurement polls its 450 members every quarter on the economic development. After a slight drop in revenue in the first quarter, the sensor industry generated a growth of two percent. Orders incoming proved to be practically stable with a minus of one percent compared to the previous quarter.
The demand for sensor and measuring technology as a key industry of digitalization, electronics, and mechanical engineering continues at a high level. However, some of these user industry branches are suffering from an increasingly precarious world-trade climate – especially the export-oriented branches are losing their momentum. This trend was defied by the sensor and measuring industry in the second quarter with a growth in turnover of two percent compared to the previous quarter.
“We’re proceeding on the assumption that sensor manufacturers have the advantage of supplying practically all user industries. Thus, if the one or the other export-oriented user branch was weakened, other branches, such as robotics or automation, have gained in strength,” said Thomas Simmons, the AMA’s general manager, about the Association’s statistics. “Many of our members are expecting further growth in their branch this year and anticipate a rise in revenue of five percent for the third quarter.”
Decreased Turnover While Orders Incoming Are Stable
After a successful result for the previous year with ten percent growth in revenue, the sensor industry falters somewhat in the first quarter of 2019, showing a decrease of one percent, as compared to the previous quarter. Orders incoming, however, are stable, showing a rise of one percent, compared to the last quarter.
Thus, the sensor and measuring industry, it seems, is smarting due to the somewhat weak start of the German industry. As the world export champion, the German engineering and automotive industries have been adversely impacted by the recent trade conflicts. The German Ministry of Economics predicts a continued decrease in orders incoming for the next months.
“In rocky times, the economy is susceptible to fluctuations,” says Thomas Simmons, general manager of the AMA Association, commenting on the current quarterly figures. “The economy slackens, the engineering and automotive industry suffer from a decrease in orders. That, in turn, affects our sensor industry. Whenever, orders incoming in construction and mechanical engineering slump, sensors and measurement are impacted, albeit with a certain delay. A large majority of the AMA member enterprises supply the engineering industry as well as thirty percent for automotive, according to their own figures.”
Overall, AMA members remain cautiously optimistic and expect four percent sales growth for the second quarter, as sensors enable innovations for almost all user industries. An overview of new trends and developments will be presented to interested parties at the SENSOR+TEST trade fair in Nuremberg from 25 to 27 June 2019. Around 560 national and international exhibitors will present technical solutions for measurement, testing and control technology.