German PHVAC Sector Shows Signs of Slowdown

German PHVAC Sector Shows Signs of Slowdown

Germany: The plumbing, heating, and air conditioning (PHVAC) sector in Germany is showing signs of decline, according to a survey conducted by ZVSHK among approximately 1,690 member companies. While the current business situation remains positive with an indicator of +36.4 percent, expectations for the coming months are negative at -7.4 percent. Order backlogs have fallen to an average of 11.5 weeks, around four weeks lower than the previous year, and only about 14 percent of companies reported sales growth, while around one-third experienced declines.

Capacity utilisation remains relatively high, with around 44 percent of businesses operating at or above capacity, although overall utilisation is decreasing and employment levels remain stable. The sector continues to rely heavily on renovation work, which accounts for over 83 percent of revenue, but investment in this area is weakening. “The figures clearly show that our trades are losing momentum. Fewer orders, declining sales, and pessimistic expectations are no longer a snapshot in time, but a trend. Our businesses are currently keeping the system running – but at a cost,” said Michael Hilpert.

Source: German Association for Plumbing, Heating, and Air Conditioning (ZVSHK)