Small and medium-sized manufacturers are showing clear signs of recovery. Both domestic and foreign order positions have improved significantly in the recent period, pointing to renewed demand for products and semi-finished goods.
Orders pick up
The domestic order balance swung from a net figure of -17 percent to +7 percent. That means the number of companies reporting growing order books now outweighs those reporting a decline. Foreign orders recovered even more strongly, with the balance climbing from -29 percent to +9 percent. Export-oriented manufacturers in particular are benefiting from this turnaround.
Improving results
Business results are also moving in the right direction. On balance, more entrepreneurs now rate their performance as better rather than worse, with a net figure of +5 percent. In addition, the share of profitable companies has risen, indicating that the recovery is visible not only in order books but also in day-to-day operations.
Investment lags behind
Despite the positive picture, business owners remain hesitant when it comes to investment. Their willingness to invest in machinery, expansion or modernisation is trailing the recovery in orders and results. This caution could weigh on competitiveness over time, since modernisation and automation are especially important in manufacturing to safeguard productivity and margins.
The outlook is therefore mixed: confidence is returning and demand is recovering, but companies are holding back before committing to major spending. Whether the recovery gains momentum will depend in part on whether entrepreneurs are prepared to set aside their caution in the months ahead and start investing in their future once again.