The automotive sector is recovering the pulse

After months of uncertainty and severe drops in production, the automotive sector is gradually showing some signs of recovery. Vehicle manufacturing plants are regaining production, the value chain is being reactivated and foreign demand alleviates the harsh figures of the pandemic. Now more than ever, Arania’s precision cold rolled steel solutions lead the way to recovery in a key sector for the Basque, Spanish and European economies.

As we all know, the pandemic forced the closure of car factories with the obligatory cessation of non-essential activities. A real knockout for the business of the whole value chain and its main suppliers, particularly if we consider the automobile as one of the driving forces of the economy. As if this were not enough, this incredible challenge arises in the midst of a revolution both in technology – towards electrics – and in the use of the product – the vehicle -, representing a real test to the health of the automobile.

However, some signs indicate that the worst may be over. The automotive sector has been, together with the agro-food sector, the only one to show a balance growth and positive results in the trade balance during the first semester of 2020, with an estimated contribution of 4,159 million euros to the Spanish economy. Vehicles exported outside Spain reported 13,620 million euros, a decrease of 28.2% compared to the same period in 2019.

During the economic crisis, Human Resources management policies such as temporary workforce adjustment plans or the implementation of remote working were the main organisational challenges faced by eight out of ten companies related to the automotive sector.

Despite the closure of markets across Europe during the months of confinement and the resulting economic impact on the sector, the automotive industry is one of the main drivers of the economy. Indeed, it is the sector that has grown the most in its contribution to the Spanish trade balance since the end of the state of alarm (April), with an increase of 132.7%. In 2019, Spain was the second largest car manufacturer in Europe, just behind Germany, and the 8th worldwide, as well as the leading European manufacturer of commercial vehicles.

In this sense, a gradual recovery of the European market is allowing a certain production rate to be regained, moderating the falls in vehicle registrations. Furthermore, the sector’s employers are also modestly optimistic: most of them are already confident on achieving recovery before the second half of 2021.

Great news for Arania and the whole Arania Group. The precision cold rolled steel solutions produced in our plants for the most demanding customers in the automotive sector represents almost 75% of our production activity, aimed to meet the demand of the finest manufacturers.

Now more than ever, Arania’s range of precision cold rolled automotive steels is the best tool in the hands of the demanding automotive sector to effectively meet the needs of the present market.