Economy Has Turned the Corner for Germany’s Micro and Nanotechnology Industry

The business outlook for Germany's micro- and nanotechnology and advanced materials has improved. Click to enlarge.

The microtechnology, nanotechnology and advanced materials industries in Germany are seeing some light at the end of the economic tunnel, according to a survey conducted by the IVAM Microtechnology Network. More than half of the companies surveyed said that the first half of 2010 turned out better than anticipated, and the mood is practically buoyant for the second half of the year and onwards into 2011. The medtech industry is a core business focus for many of these companies.

After one and a half years marked by drops in revenue, orders and production, expectations for 2010 were quite restrained at the beginning of the year, according to IVAM, an international association of micro- and nanotechnology and advanced materials companies headquartered in Dortmund, Germany. Quite a few managers have expressed surprise at how well business has rebounded in the first half of 2010, notes a press release issued by the association. “Individual companies report that sales have risen as much as 15%. Some micro- and nanotechnology companies report sales and incoming orders that have regained or even exceeded levels from the first half of 2008.”

“Former customers are now returning of their own accord,” a company representative commented on his experience. The demand for equipment for the semiconductor industry is particularly strong at present.

Business operations in 2010 exceeded expectations for 52% of the companies participating in the survey. One-third of companies polled reported that forecasts were met, whereas 15% said that business was worse than anticipated. When asked to review individual business areas and compare them with the first half of 2009, incoming orders came out on top: 62.9% of companies noted improvement in this area. Production and sales also improved for more than half of respondents.

Corporate financing remains the weak link: 58.8% of companies have been able to maintain a stable level of financing, but the situation has worsened for 14.4% of companies polled.

Some of the companies polled are forecasting very positive developments for the second half of 2010: 53% are looking forward to a stable business situation and 40% are anticipating further improvement. Specifically, an increase in foreign demand is anticipated, particularly from the Asia/Pacific region.

Tags: business outlook, IVAM, Microtechnology, nanotechnology