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EU safeguarding measures against steel imports could become an issue if the EU and the UK fail to reach an agreement on the post Brexit trade relationship.
Mid-level producers, smaller steel and metals service centres have started to feel cash flow and profit margin pressure after the imposition of tariffs.
Southeast Asia is facing headwinds in the face of the US-China trade war and increased global market volatility, but strong domestic policymaking and economic fundamentals should mitigate risks.
Despite ongoing growth, there are challenges ahead, as profit margins of businesses decreased in 2017 and H1 of 2018 due to sharply increased input costs.
Many producers are under pressure to either expand/grow or refuse orders, while difficulties in hiring skilled staff impacts further business expansion.
As in previous years, competition remains strong in the domestic market, mainly among small and medium-sized machinery companies depending on construction.
A modest insolvency increase is expected in 2019, with businesses related to oil and gas exploration, construction and agricultural markets mainly exposed.