Frankfurt am Main – Positive economic times have dawned again in mechanical and plant engineering, even if supply chain problems persist. The order situation is current and very good with a view to the next twelve months. However, a lack of training places, unused employment potential and insufficient investment expenditure that does not correspond to economic growth jeopardize future prospects. Production relocations and cost-optimization measures are also still on the agenda. The companies are thus endangering the future of the industry in Germany as an industrial location. This is the result of the “Trend Reporter 2023”, an industry-wide works council survey by IG Metall.
“Mechanical and plant engineering is in good economic shape again. However, this growth leads to enormous work pressure for the employees, without countermeasures being taken in the companies in terms of personnel policy,” summarizes Wolfgang Lemb, executive board member of IG Metall, the central results of the survey. An appropriate personnel policy is finally needed. “In view of the need for skilled workers, mechanical and plant engineering must provide more training and the trainees must be given permanent employment contracts.” This must be combined with qualified personnel planning that enables further training for everyone and with more investment in Germany as an industrial location, emphasizes Lemb, who in his Function responsible, among other things, for industry work in mechanical and plant engineering.
Incoming orders stabilize at a high level
67 percent of the works council members surveyed rated the current order situation as very good or fairly good. 37 percent also expect incoming orders to continue to rise over the next twelve months, while 39 percent assume that incoming orders will remain the same. 12 percent expect falling orders. Due to the continuing problems with the supply of materials, only 46 percent rate the profits as very good or fairly good. 28 percent expect profits to increase over the next twelve months, 42 percent expect the level to remain the same and 14 percent expect it to fall. For the employees, the uncertain supply chain situation in view of the need for skilled workers means that overtime takes place in 73 percent of the companies and there is therefore a high workload.
The need for skilled workers continues to increase
44 percent of those surveyed expect the permanent workforce to increase in the next twelve months. 9 percent of temporary workers and 17 percent of temporary workers expect an increase. The number of trainees remains at a low level. Although 75 percent state that it is difficult to find skilled workers, only 23 percent offer more training positions. Qualified personnel planning is still missing in 81 percent of the companies. At the same time, the companies do not use existing employment potential. Only every tenth company has the prerequisites for women to learn a trade. And only 14 percent of the companies allow applicants with a low school diploma and no training at all. “Companies have increased their need for skilled workers due to their own wrong decisions,” warns Wolfgang Lemb. At the same time, the industry, with less than 20 percent women, must become more attractive to women. More female role models are also needed in management. 90 percent of those surveyed state that the proportion of women in management is between 0 and 25 percent.
There is no catch-up in investments
The expected development of investments and investments in research and development has deteriorated again compared to 2022. 18 percent of companies plan to increase investments. In 64 percent of the companies they remain at a level where only 37 percent of those surveyed describe the investment situation as very good or rather good. Wolfgang Lemb: “In order to ensure stable future prospects for companies in Germany, more investments are urgently needed.”
Politicians must set incentives
In order to secure jobs in Germany’s industry with the highest number of jobs, IG Metall is convinced that politicians must also give Germany and its works councils more support as an industrial location. The service business, which is central to the industry, is endangered by the skilled worker situation and the political framework. 59 percent of those surveyed believe that improved legal regulations could at least partially relax the need for skilled workers in service. Wolfgang Lemb: “Less bureaucracy is required for travel expenses and taxation of external activities. This discourages employees from working in service.”
The trend reporter is a survey of works councils in mechanical and plant engineering that has been carried out by IG Metall every spring since 2017. He captures their view of the industry. This year, it was supplemented with questions about the skilled labor situation. More than 510 works council members took part in the current survey from January 16 to February 10, 2023.