prospects represent a continued decline in demand for investment castings, as is currently being observed.


Other Applications The Other


Applications segment


(General Engineering, Bio-Medical and Commercial Castings) experienced a slight slowdown in 2019, finishing the year with an estimated1.5% decline on the European continent.


Casting sales shall remain


competitive with slightly lower levels of demand and output in 2020. Some reshoring activities will continue being established with products coming back to European foundries.


Summary European investment casting has performance well in 2019, surpassing overall EU GDP rate. “High Added Value” and “Automotive” market segments account for 90% of European investment casting sales, being led by the strength in the Aerospace sector. The Automotive industry, which continues to be a very important segment to European investment casters, is experiencing a significant decline. Clarification of diesel policies and emissions regulations together with the growth in demand for APV and Electric Cars are redefining the automotive investment casting sector.


The energy source shift to


renewables and climate policies has been affecting the IGT Market. Global energy demand in


the forthcoming


years, together with increased efficiency in new designs, will reposition the IGT market segment. Demand is expected to rise in the second half 2020.


The European Union’s 2019 GDP of 1.4% is expected to rise slightly to 1.6% in 2020. Despite the expected slowdown in EU economic growth, the labour market outlook remains positive. The unemployment rate is projected to remain relatively low and job creation will continue although at slower rate as the economy will cool down. According


®


to the Commission’s latest estimates, the EU unemployment rate will its downward trend from 6.9% in 2019 to 6.3% in 2020.


The near-term outlook for the


European economy is clouded by external factors including global trade tensions and significant policy uncertainty. These factors have continued to weigh heavily on manufacturing sector confidence due to that sector’s significant reliance on


January 2020 ❘ 19


exports and international trade. Yet, the overall outlook for investment casting companies is fair due to the dominance of the market segments present in the European Investment casting industry.


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