Sensors and Measurement: Sales and Order Situation Stabilize
AMA Association reports industry development for the third quarter of 2020
While the sensor and measurement technology industry recorded significant losses until the middle of the year, the third quarter gives hope for a slow recovery. While sales declined significantly in the first and second quarters, sales development in the third quarter indicates a slight stabilization with plus one percent. Incoming orders increased by four percent, which gives the industry cause for optimism.
The AMA Association for Sensor and Measurement Technology e.V. (AMA) surveyed its approximately 450 members on economic development in the third quarter. According to its own data, the industry generated a sales increase of one percent in the third quarter, compared to the previous quarter.
This is a positive development, as the industry had expected a minus of three percent for the third quarter. Among the large companies, sales by suppliers to their own sensor and measurement technology industry sector developed disproportionately well. Sales of suppliers to the mechanical engineering sector stagnated, while those of automotive suppliers are slowly stabilizing.
Short-time working and disruption of supply chains
The proportion of companies that introduced or maintained short-time working in the third quarter was 58 percent. Here, suppliers to the automotive industry, 80 percent of which are on short-time work, are showing themselves to be particularly affected.
The AMA Association also asked its members about pandemic-related supply chain disruptions. Supply chains were disrupted for a quarter of members, and 42 percent of these members were unable to find adequate replacement suppliers. Again, AMA members supplying to the automotive industry were particularly affected.
"We are pleased to see a slight upward trend in the sensor and measurement industry in the third quarter," said Thomas Simmons, AMA executive director. "However, we see a light at the end of the tunnel for now. Due to the heavy losses in the first quarters, the industry lost the very good industry performance of the past two to three years. The effects of the COVID 19 pandemic are difficult to foresee. Nevertheless, our members are mostly optimistic about the fourth quarter and expect a six percent increase in sales."
Sensor and Measuring Technology: Revenue decline, orders incoming clouds over further
AMA Association reports industry development in the second quarter of 2020
Sensor and Measuring Technology already recorded slight revenue losses in the first quarter, in the second quarter sales fell by a further eight percent. Incoming orders in the industry also developed negatively, falling by 13 percent. The share of AMA member companies that have registered short-time work rose to 55 percent in the second quarter.
Berlin, September 16, 2020 - The AMA Association for Sensors and Measurement (AMA) polls its approximately 450 members about the economic development in the second quarter. According to their own statements, the industry generated a drop in sales of eight percent in the second quarter compared to the previous quarter.
It is interesting to note that large and small to medium-sized enterprises (SMEs) show similar sales trends, but expectations differ. While SMEs had predicted a 14 percent drop in sales in the first quarter, they generated a less negative result than expected, at minus eight percent. For the current quarter, SMEs are expecting a minus of three percent. The large companies expected a decline of three percent and have to cope with a drop in sales of nine percent. For the third quarter, the large companies expect a minus of one percent.
Development of the most important sales markets in the second quarter
The sales markets of sensor and measurement technology companies also developed differently in the second quarter. The only positive developments were sales to the building and heating, ventilation and air-conditioning sectors. The medical technology sector reported a slight overall decline.
Suppliers to the strongly sensor-driven automotive, mobility, mechanical and electrical engineering sectors suffered the sharpest falls in sales. Expectations for the current quarter are also clouding significantly in these sectors. On the other hand, suppliers to the semiconductor and medical technology industries and to the company's own sensor and measurement technology sector are confident.
"The entire German economy experienced a significant decline in economic output in the first half of the year," says Thomas Simmons, AMA Managing Director. "Subsequently, this development also pulled sensor and measurement technology into a downward trend. Weak demand from abroad is additionally flanking this sales trend. It is not yet possible to estimate quantitatively how severe the slump will be for sensor and measurement technology manufacturers".
Sensors and Measurement: : Slight Downturn in Revenue During First Quarter
The AMA Association for Sensors and Measurement polls its members every quarter on their economic development. The sensor industry reports a drop in turnover of one percent for the first quarter of this year compared to the previous quarter. Orders incoming rose at the beginning of the year by four percent. The sensor industry expects a drop in revenue of four percent for the second quarter.
Turnover and orders incoming in the German industry partially recuperated at the beginning of the year. However, due to the Corona pandemic, which sparked a massive worldwide decline in supply and demand, the economic trend has reversed.
The effects of the pandemic impact production, supply chains, sales markets, and the German employment market. According to the AMA Association the extent of the slump for the sensor and measurement industry is at present difficult to estimate. In the current quarter, the sensor industry is counting with a drop in revenue of four percent.
“Since the national and international sales markets have steeply declined due to the Corona pandemic, this has a time-lagged impact on the producers of sensors and measuring technology,” says Thomas Simmons, general manager of the AMA Association for Sensors and Measurement. “The economic development for the first quarter shows that the suppliers for the automotive industry are especially affected, having to cope with an extensive drop in revenue. These and the suppliers for machine and plant engineering have a pessimistic outlook for the current quarter. Unlike this development, the AMA members supplying building automation and medical technology record slight increases in the first quarter and have a clearly optimistic outlook on the current quarter.”