After last year’s decline of eight percent, directors of industrial companies expect revenue growth this year, by an average of 7.5 percent. However, the development after coronavirus suppression depends on many factors and is more uncertain than ever. This follows from the Barometer of Czech Industry, which was prepared by the National Center for Industry 4.0. The analysis is based on data obtained during 327 interviews with key representatives of selected companies in the Czech industry during March, it was presented at Thursday’s online conference.
“We are a small open economy and a large number of companies are unfortunately still committed in supply and demand chains. The development of Czech industry is therefore extremely dependent on external influences, and if most of them are currently unstable, it also affects the security of Czech companies,” she said. on Thursday Alena Burešová from the National Center of Industry 4.0. According to her, the solution for Czech companies can be to break free from dependence on a limited number of customers, digitize processes or use new technologies to increase their ability to respond to changes and customer demand.
According to a survey, 91 percent of directors of industrial companies expect revenue growth this year. More optimistic are the heads of large companies, who expect growth of up to nine percent, and directors of small and medium-sized enterprises at the level of 6.5 percent. The survey also showed that companies increase the increase in costs, especially the increase in prices of materials and commodities, by increasing the prices of their products and finding reserves in production. Roughly half of the companies said that they managed to maintain profitability, about a quarter expect it to increase. However, the deteriorating solvency of customers is beginning to be reflected in the problems of companies with cash flow, it also follows from the survey.
According to the survey, industrial enterprises will also have higher sales next year, but the expected growth will no longer be so great and will average around 4.9 percent. 84 percent of company directors expect growth in 2022. “Another outlook is threatened by even more factors than before. In addition to the green challenges, the possible wave of a pandemic and associated lower foreign demand, a tense foreign policy situation or protectionist tendencies in the world are also a negative risk. our exports, which are based primarily on industry, “said Vladimír Dlouhý, President of the Czech Chamber of Commerce.
The President of the Confederation of Industry and Transport of the Czech Republic, Jaroslav Hanák, then drew attention to the rise in commodity and energy prices. “This does not help companies in the current situation. In some areas, companies even talk about a cost shock,” he said. According to him, companies can reduce the impact of higher input prices on profitability, among other things, by streamlining their production and starting to use new technologies. “Thanks to them, for example, they can reduce the scrap rate of production, and thus use the material as efficiently as possible. However, such modernization of production requires, of course, large investments,” added Hanák.
The National Center for Industry 4.0 is an open academic-industrial platform connecting innovation leaders, universities, companies and professional organizations, whose goal is to jointly contribute to the development of the so-called Industry 4.0 in the Czech Republic. The center is part of the Czech Institute of Informatics, Robotics and Cybernetics, CTU in Prague.
Source: Tyden.cz by www.tyden.cz.
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