Electrical Engineering Association: Electronics industry suffers sales slumps worldwide

After stormy growth in recent years, the electronics industry is struggling with global sales slumps. The world market for electronic components is expected to shrink this year by nine percent to 592 billion US dollars, said Christoph Stoppok, responsible for this area managing director of the electrical engineering association ZVEI.

"The difficulties we face are largely political," Stoppok said, referring to the Brexit, the trade dispute between the US and China, and other political uncertainties. The three-day trade fair Productronica, the trade fair for the development of production and electronics, began in Munich on Tuesday.

The biggest drop will be in the US with a 17 percent drop, followed by China, where the association expects a drop of 8 percent. In Europe, according to ZVEI, the minus will be around six percent. Demand is in decline in the mobile phone industry, as well as in mechanical engineering, electronics and the car industry, said Johann Weber, Chairman of the ZVEI Association Electronic Systems.

The domestic manufacturers are also feeling the difficult situation, such as the lighting manufacturer Osram, which announced a three-digit million loss on Tuesday in the past financial year. In Germany, however, the manufacturers of machines for the electronics industry are particularly well represented. These companies are also preparing for worse times, as shown by a survey of the VDMA engineering association. This year, a strong increase in sales is expected, but next year many companies expect worse business. In 2018, there was still a growth of 14 percent.


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