Demand for German machine tools has declined, especially outside the euro zone.
(Source: Index-Werke)
Domestic orders declined by 10 %. Foreign orders dropped by 27 %, the German Machine Tool Builders’ Association (VDW) reported in Frankfurt am Main. “These declines are not least attributable to an extremely strong first half of 2018," comments VDW Managing Director Dr. Wilfried Schäfer. The base effect will decrease significantly in the second half of 2019, Schäfer said.
Economic Slowdown Starts Affecting the Machine Tool Industry
“Nevertheless, the slowdown of the global economy has now reached the German machine tool industry as well," Schäfer continues. Domestic business, which has long been a counterweight to the decline in foreign orders, is loosing momentum. The only ray of hope is the euro zone, which is much more stable and only dropped by 3 %. However, it can only marginally stabilize the loss from the non-euro areas.
The VDW sees the reasons for the declining trend in politically caused disruptions in world trade, which are having an impact on the emerging markets. Further reasons are the weak growth in China, structural weaknesses of the automotive industry as the largest customer of this sector, and the slump in the semiconductor industry. “The international automotive industry had already halved its capital expenditure in 2018 to less than 4 % compared to the previous year and is likely to remain below this level in 2019," explains the VDW Managing Director.
Order Intake in Machine Tool Building Remains Below Sales Level
For the first time since mid-2014, orders for machine tools are below sales again. In the first three months of 2019, turnover still increased by 6 %. “Many companies are currently relying on the order backlog from the previous boom," says Schäfer. Long delivery times are becoming shorter again. As a result, procurement from customers and throughput times in plant production at suppliers become more flexible again. In April of this year, capacity utilization was 86.5 % and remained below last year's average.
"The VDW nevertheless expects production to grow by 1 % in 2019," confirms the VDW Managing Director. On the other hand, he expects demand to pick up during the second half of the year. The order backlog is also expected to make itslef felt for some time to come.
Original by Stéphane Itasse / Translation by Alexander Stark
Unfold for details of your consent
Declaration of consent
Naturally, we always handle your personal data responsibly. Any personal data we receive from you is processed in accordance with applicable data protection legislation. For detailed information please see our privacy policy.
Consent to the use of data for promotional purposes
I consent to NürnbergMesse GmbH, Exhibition Centre, 90471 Nuremberg, including any affiliated companies according to §§ 15 et seq. AktG (hereafter: NürnbergMesse) and Vogel Communication Group GmbH & Co. KG, Max-Planckstr. 7-9, 97082 Würzburg, including any affiliated companies according to §§ 15 et seq. AktG (hereafter: Vogel Communications Group) using my e-mail address to send editorial newsletters. I have accessed lists of the respective companies here for Vogel Communications Group
Newsletter content may include all products and services of any companies mentioned above, including for example specialist journals and books, events and fairs as well as event-related products and services, print and digital media offers and services such as additional (editorial) newsletters, raffles, lead campaigns, market research both online and offline, specialist webportals and e-learning offers. In case my personal telephone number has also been collected, it may be used for offers of aforementioned products, for services of the companies mentioned above, and market research purposes.
In case I access protected data on Internet portals of NürnbergMesse including any affiliated companies according to §§ 15 et seq. AktG or Vogel Communications Group including any affiliated companies according to §§ 15 et seq. AktG, I need to provide further data in order to register for the access of such content. In return for this free access to editorial content, my data may be used in accordance with this consent for the purposes stated here.
Right of revocation
I understand that I can revoke my consent at will. My revocation does not change the lawfulness of data processing that was conducted based on my consent leading up to my revocation. To declare my revocation I must use this contact form. In case I no longer wish to receive certain newsletters I have subscribed to, I can also click on the unsubscribe link included at the end of a newsletter. Further information regarding my right of revocation and the implementation of it as well as the consequences of my revocation can be found in the privacy policy, section editorial newsletter.