Economic uncertainty in the EU is leading European manufacturers to scale-back operations, investment projections and optimism.
In fact, recently released Q3 ’11 results of the MFGWatch Quarterly Survey of North American & EMEA Manufactures show that:
- Only about one-third (35 percent) of the European supply-side manufacturers polled reported business growth in Q3’ 11 –that’s down from 44 percent in Q2.
- About the same amount (34 percent) of suppliers said their businesses have contracted –that’s nearly double the 18 percent who reported contraction in Q2.
- Buy-side manufacturers in Europe aren’t faring any better. Sourcing manufacturers in the EU reported growth in their businesses fell from 44 percent to 27 percent in Q3’11. Buy-side manufacturers indicating contraction rose from 16 percent to 30 percent over the same period.
In addition, the survey found that both buy-side and supplier manufacturers in Europe are hiring less and laying off more employees. Among supply-side manufacturers, 13 percent fewer added jobs, while another 13 percent more shed jobs (20 percent, up from 3 percent in Q2’11). Sourcing manufacturers also saw employment dwindle – with 27 percent adding jobs (down from 31 percent) and 18 percent decreasing payroll (up from 9 percent in Q2’11).