EU engineering – a diamond in the rough

“We are one of the cornerstones for achieving sustainable long-term economic growth in Europe, an industry diamond in the rough.  The engineering sector has again weathered the storm and foresees a stabilisation in the overall business climate for the industry in 2016. Growth in output is expected to reach 1.2% and expected to remain on almost the same moderate level as in 2015 (1.3%)” said Tomas Hedenborg, President of Orgalime, the European engineering industries association.  “Based on official data available, we estimate that the engineering industry’s total turnover value in the European Union reached more than €1900 billion in 2015. The number of employees stood at almost 10.9 million people – up 0.7% of which over 1.25 million working in installation and repair services. We are one of the few industry sectors which is adding jobs to the economy” he added.

As 2014 ended with some slow growth, we were happy to observe that it picked up during the first quarter and especially the second quarter of 2015 which showed a strong performance among most sectors. In the second half of the year the engineering industries could not maintain this high level, but continued to grow at a more moderate rate.  Overall, output of the European engineering industry therefore grew by a fairly modest 1.3% in 2015. 

It is estimated that employment grew by 0.7% in 2015, thereby improving on the 0.3% employment growth of 2014. For 2016, however, Orgalime economists expect that this performance will flatten out, without a further increase in employment as the number of staff stabilises.

“We very much hope that politicians on the European and national stages continue their supportive approach to the manufacturing industry, particularly with the opportunities offered from digitisation, which in many cases is supportive of policy objectives such as energy and resource efficiency.  The need for ‘command and control’ legislation which often undermines the innovation potential of companies, should, with digitisation, now become a thing of the past. Whether regulators can begin to consider a new approach for achieving the right framework in the EU will determine in many sectors whether the EU remains competitive as a manufacturing location” said Adrian Harris, Orgalime’s Director General.

Ends

Notes for the Editor [more in download]

PI_Orgalime_Economic_Situation_jun16.pdf (270.59 KB)Download

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