AFM cluster member association AFMEC (Spanish Association of Machining and Metal-Mechanical Transformation) a representative body for 183 member companies forecast for the 2020 financial year indicates a reduction in revenue of around 30%-35%, coupled with concerns as to what is in store in 2021, influenced from the effects of Covid-19.  

With most industry sectors affected, the activity of important domains such as the automotive and aeronautical sectors is currently minimal, which has a significant effect on the companies. Despite the challenges, the sector has not surrendered its commitment to employment, the slowdown in activity has constrained a few organizations to execute employment flexibility measures. The association estimates that one-third of companies have implemented temporary employment regulations (ERTEs) and that this number will diminish as they recuperate their industrial activity. 

“After the good results of 2018, in which our companies grew by 6.8%, 2019 saw a minimal downturn that marked the gradual change in trend of a scenario that had remained stable until that time. Despite our natural concerns, nobody expected the terrible effects that the pandemic had on industrial activity”, observed Alberto Pérez, President, AFMEC. “The entry of orders during March, April and May slowed down significantly. After the worst of it, companies have continued to work at an acceptable rate, thanks to their portfolio of pending orders. However, this portfolio is gradually running out and the rate of acquisition of new orders is much lower than usual. The current level of activity in our companies is approximately 75%. Although there are signs of a renewal in requests for offers, these have yet to materialise in widespread orders. We estimate that commercial activity in the domestic market is at 65% compared to normal and 40% in the international market".

For more information: www.afmec.es

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