The SME metal sector is still doing well. This is evident from the latest Royal Metal Union Economic Barometer. As at the end of 2016, the good results are mainly due to an improved order position of the SME metal industry in both the Netherlands and abroad.
The Metaalunie sets out the results of the Economic Barometer based on a number of themes:
Domestic order position: In terms of domestic order position, the industry continues the positive fourth quarter of last year. Four in 10 companies saw their domestic order book increase. The domestic order position is also viewed positively by many companies: more than 50% are satisfied, 10% are really not satisfied.
Among the companies that participated in the barometer survey, the total order book decreased from 7.9 to 7.6 weeks. It is the third quarter in a row that the order book declined in weeks.
Order position abroad: Half of the respondents export abroad. Most companies are satisfied with their foreign order book; it is rated better than the domestic one. But as the Koninklijke Metaalunie also points out, developments around exports are more difficult to assess. Good results regularly alternate with bad ones. Nevertheless, the majority of exporters (40%) are positive about the second quarter.
Sales prices: In the first quarter of this year, almost 30% of participants increased sales prices within their companies. In part, this is due to increasing demand, but for many it is also a compensation for higher purchase prices. These have risen due to limited supply capacity by suppliers.
Labour market: The barometer revealed that one in five companies have more employees than in the previous quarter. By contrast, one in those 10 have fewer permanent employees. The number of companies working with flexible workers also increased, although this growth is smaller than that of permanent staff. There is still pressure on the labour market: 36% of companies have one or more vacancies open.
Operating result: While there was a positive assessment of the order book, the operating result did not increase much on balance. In 31% of companies, there was an increase, in 16% a decrease. However, 55% of participants did rate the operating result for the first quarter positively, compared to 5% who see it negatively. 40% expect an increase in the coming period.
Investment in machinery: For a long time, it looked like a negative trend was underway in terms of investment expectations. During 2016, there even seemed to be a low point coming in terms of the investments companies were making in their machinery. That movement has reversed somewhat; there are now as many entrepreneurs who say they will invest more as those who say they will not. This is the first time in eight years that this has been almost the same.
By: Kelly Bakker
Photo: Shutterstock
