Automotive Suppliers (Sernauto) warn of slowdown, though expect to maintain employment figures
The board of directors of the
Spanish Association of Automotive Suppliers (Sernauto) has warned that the Spanish auto parts industry is suffering “significantly” from the effects of inflation and the uncertainty surrounding the sector.
Thus he pointed out that
more than a year agocar suppliers are faced with a complicated situation caused by the lack of some components, the increase in raw material prices and the sharp increase in energy and logistics costs.
Vereniging Sernauto has revised the outlook for the sector for 2022 downwards, so that turnover will grow by approximately 5% compared to 2021; and in terms of employment, it is estimated that 2021 figures will be maintained, a long way from pre-pandemic data.
«More than 16 months of crisis have accumulated and the situation has become very complex in the case of some companies, especially SMEs. It is crucial that the government
the measures proposed by the industry in the shock plan and get the necessary help so that companies can cope with this complicated period with guarantees and jobs are not destroyed,” said Sernauto’s general manager, José Portilla.
Portilla cites as “essential” labor flexibility measures that allow, as has already happened during the pandemic,
keep working despite difficulties, as well as access to financing on favorable terms. “If we don’t do it efficiently and quickly, companies will gradually be lost and with it quality employment,” says the organization.
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uncertainty has been addedthe spiral of inflation and the decline in vehicle production, which together are causing a slowdown in the recovery of the automotive sector and more specifically of the Spanish components industry, as it is unable to pass on a large part of the resulting costs.
Sernauto’s conclusions are the result of a survey of its employees, which shows that almost all companies still suffer from increases in raw material prices (and more than a quarter an increase of more than 40%).
Also,
there is still a shortage in raw materials required for manufacturing such as plastics, steel, aluminum, chemical products or cardboard. 60% of suppliers state that they still suffer from the lack of some components, such as semiconductors, electronic components, microchips and machining.
On this point, the association indicates that the sharp increase in energy costs has a significant impact on the competitiveness of component manufacturers. For a quarter of the companies, for example, it meant increases between 20% and 40%; for one in five between 40% and 60%; and one in 10 companies
had to assume an increase of more than 60%.
On the other hand, three in four companies have been affected by the decline in vehicle production and almost all by logistical problems, although there are certain improvements in this area compared to 2021, according to Sernauto.
In terms of billing,
although only 27% of companies declaring that it has fallen, profitability has been affected for more than 60% of companies. For 29% of them it has fallen between 0% and 10%; for 21% between 10% and 20%; and for 12% more than 20%.
In addition to the aspects mentioned, the automotive suppliers have also described as “critical” issues such as discontinuous production (car maker downtime), overstock management, the uncertain economic environment and
the war conflict in Ukraine.
Source: La Verdad
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
