FRANKFURT – The German area electronics industry expects 5% growth in 2021, after production fell 7% in 2020, according to ZVEI.

Pre-crisis levels will not be reached until 2022 at the earliest, the association says. Last year, the pandemic hit the electronics industry hard, and the industry suffered losses in all key indicators.

"Nevertheless, the electrical industry has done a little better than many other branches of the manufacturing industry," said ZVEI president Dr. Gunther Kegel. “Production fell by 7% compared to 2019 and sales by 6%. At €180 billion, revenues only reached the level of 2016. Thanks to short-time working, the number of employees fell only moderately to 873,000. Most recently, every eighth was on short-time work. For 2021, ZVEI expects an increase in production of 5%. This would make up about two-thirds of the losses from last year. The association expects a return to the pre-crisis level in the course of 2022. However, these forecasts are subject to high levels of uncertainty. This also includes the question of how long the current lockdown will last or whether it will even be tightened again. A hard lockdown in the industry must be avoided. It is not hardship, but differentiated protective measures that decide successfully fighting a pandemic. "

Kegel sees one reason for the comparatively good position of the industry in the increasing electrification and digitization. The trend toward an all-electric society is linked to coping with climate change – a challenge that, in his view, cannot be met by prohibitions and waivers, but only through the broad use of technological innovations. Here, Kegel sees the electrical industry in a key position.

“The all-electric society will be shaped by the intelligent coupling of all climate-relevant sectors. There is great potential in the end-to-end electrification, digitization and automation of the areas of energy, industry, buildings and mobility in order to achieve the set climate targets. That is only possible with innovations in the electrical industry.

“Politicians should urgently readjust to make better use of the opportunities offered by the all-electric society. If green electricity becomes the primary energy source, it has to be relieved. We are, therefore, sticking to our demand: The EEG surcharge must now be reduced quickly and abolished in the future, while the CO2 price must rise. At the same time, climate-friendly technologies must be used across the board in order to achieve the necessary scaling effects. To this end, the infrastructure must urgently be expanded, be it in the building stock, which is largely not energy-efficient due to outdated electrical installations, or when charging electric cars.”

From January to November 2020, the electrical industry's exports to Europe fell 6.5% to around €118 billion. In the euro zone they even fell 8.4% to under €58 billion.

“The vulnerability of Europe became clear in the past year. We warn against continuing the discussion about border closings in Europe. The cross-border movement of goods is not a major factor in the pandemic and must be maintained. Otherwise, Europe threatens another massive economic slump,” said Wolfgang Weber, chairman of the ZVEI management board.

“Open borders and global value networks are elementary. At the same time, Europe must remain technologically sovereign when it comes to key technologies such as microelectronics. That must not be misunderstood as isolation or self-sufficiency. On the contrary, technologically sovereign means being able to use the opportunities of global value creation in a self-determined manner. The stronger one's own technological position, the better.”

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