• Critical assessment of the current business situation 
• Future expectations turn negative
• Investment climate cloudy
• Expectations for application industries vary
• Growth drivers with only slight shifts
• Composites index points in different directions

This is the 21st time that Composites Germany has identified the latest performance indicators for the fibre-reinforced plastics market. The survey covered all the member companies of the umbrella organisations of Composites Germany: AVK and Composites United, as well as the associated partner VDMA.

Critical assessment of current business situation

After consistently positive trends were evident in the assessment of the current business situation in 2021, this slipped in 2022. For the third time in a row, the current survey shows pessimistic assessments. The reasons for the negative mood are manifold. However, the main drivers are likely to be the still high energy and commodity prices. In addition, there are still problems in individual areas of the logistics chains as well as a restrained consumer climate. Despite rising registration figures, the automotive industry, the most important application area for composites, has not yet returned to its former volume. This also illustrates the change in strategy of European OEMs to move away from volume models towards high-margin vehicle segments. The construction industry, the second central area of application, is currently in crisis. Although the order books are still well filled in many cases, new orders are often not forthcoming. High interest rates and material costs combined with a high cost of living are placing a heavy burden on private construction in particular. A real decline in turnover of 7% is currently expected for the construction industry in 2023.

Please read here the full press release.

• General economic developments are dampening mood in composites industry
• Future expectations are optimistic
• Investment climate has remained stable
• Varying expectations for application industries
• Growth drivers have remained unchanged
• Composites Index is pointing in different directions

This is the 20th time that Composites Germany has identified the latest performance indicators for the fibre-reinforced plastics market. The survey covered all the member companies of the umbrella organisations of Composites Germany: AVK and Composites United, as well as the associated partner VDMA.

General economic developments are dampening mood in composite industry

Like all industries, the composite industry has been affected by strong negative forces in recent years. The main challenges over the last few years have been the Covid pandemic, a shortage of semiconductors, supply chain problems and a sharp rise in the price of raw materials. Furthermore, there have been numerous isolated effects that added to the pressure on the industry.

The main challenges during the past year were primarily a steep increase in energy and fuel prices and the cost of logistics. In addition, the war in Ukraine put a further strain on supply chains that had already been weakened. Overall, the stock market prices for both electricity and petroleum products are currently showing a clear downward trend. However, the significantly lower prices have not yet percolated from manufacturers and buyers to the end customer. The aforementioned effects have further dampened the mood in the composites industry. The index assessing the current general business situation in Germany and Europe has dropped even further than before. However, the assessment of the global situation is somewhat more positive.

Please read here the full press release.

Society and the economy are facing existential challenges. In addition to the consequences of climate change, these include the realisation that energy and many resources are no longer available in the usual quantities, so that their efficiency must be significantly increased in the short term. Lightweight construction, especially with fibre composite materials, can and will make an important contribution here, e.g. in wind power plants or hydrogen storage systems. As an umbrella organisation, Composites Germany represents the capabilities and interests of the German fibre composite industry. With the re-entry of Composites United, Composites Germany will combine the forces of the two leading composites networks in Germany and its position will be significantly strengthened. Changed framework conditions make the re-entry possible and necessary.

VDMA and Leichtbau BW will continue to support the work of Composites Germany as associate members and contribute the know-how of their members. "Together, the organisations will promote sustainable lightweight construction as a key technology for Germany, focusing on composites materials," says Prof. Klaus Drechsler of Composites United, one of the two board members of Composites Germany.  "As a network and mouthpiece of the composites industry, Composites Germany bundles the interests of its members. The aim is to continuously expand activities, promote innovations and technologies, develop new markets and new value chains, and anchor training and further education," adds his board colleague Dr Michael Effing of AVK. The agreement was concluded on 29 November 2022 during the JEC Forum DACH in Augsburg, where both associations were cooperation partners of the event.

Please find here the press release as a PDF file.

29.11.2022

Prof. Dr. Klaus Drechsler - Composites United                          Dr. Michael Effing - AVK