ANNUAL REPORT 2010/11 - Schumag AG

14Group management reportGROUP MANAGEMENT REPORT❚ ECONOMICENVIRONMENTIn 2010 the recovery of the global economy fromthe global financial crisis slowed down. In spiteof this, a rise of the worldwide gross domesticproduct by 4.8 % was recorded for the total year.In view of the high budget deficits in many countriesthe monetary and financial measures takento stimulate economic activity in the industrialcountries lost their effect. A moderate recoveryof economic activity continued in 2011. This wasaccompanied by rising prices in the raw materialmarkets and the consequences of the earthquakein Japan. From the 3rd quarter of 2011 globalproduction clearly increased again at a rate ofincrease of more than 4 %.In the period under review Germany was one ofthe industrial countries who faced the crisis withparticular success. Especially due to a strongdomestic demand the gross domestic productincreased by 2.0 % until the end of the 3 rd quarter2011. The situation in the labour market wascharacterized by an all-time record in employmentrates. The inflation rate of 2 % was classed as highin Germany, price drivers were the energy and foodmarkets.Important markets for Schumag are the commercialvehicles market as well as medical technology.In 2011 the German manufacturers of commercialvehicles recorded a 24 % increase in productioncompared to the previous year. This was clearlyhigher than the European growth rate of 15 %.Global production even decreased by 1 %. Thelargest impact was caused here by the weakeningof the Asian commercial vehicles market. Thepressure on the automotive industry remainedunchanged at a high level. There is an unchangedtendency of establishing a supplier base in theEuropean and non-European region.The German medical technology industry grew byalmost 7 % in 2011 which was largely due to therise in foreign sales by almost 11%.