The uncertainties and economic tensions have also been reflected onto the forging industry, where the growth forecast for 2019 has been reduced to 0,7 % in October from 1,2 % in April. Especially the commercial vehicle market in Europe and China is getting hit hard for the last couple of months. This slowdown makes high impact on investments, decision making and expanding strategies. Growth in non-automotive sector seems still better than automotive, where the effects of trade fights and other risks are much more impacted. Forgers are working to get new projects on one side, while trying to survive with current downturn, high energy prices and volatile demand situation on the other side.
The global vehicle production will be hit by – 6 % in 2019 compared to 2018, according to IHS. Europe and North America are slowing down by – 4 %, where China is getting back by – 9 %, resulting the main losses of 2019 vehicle production.
The sales forecasts of the top 10 producers are also expected to reduce by – 3 % this year.
As we are getting to year end, European forging industry hopes for a good and successful 2020, where the trade and political conflicts are ended, geopolitical crises are over and overall industry recovers again back to healthy and growing position.
_{(Source: EUROFORGE AISBL)}