“Experts expect networking to trigger a quantum leap forward in terms of improving productivity and competitiveness among users in all sectors,” said Schäfer. No doubt this is why the VDW will be focusing on digitization and networking at this year’s EMO Hannover.
State of Machine Tool Markets
According to the VDW, the global machine tool market totalled €68.3 billion (USD $72.9 billion) in 2015, with a 1.7 percent decline predicted for 2016.
The European market is cited as the best performer, driven by consumption in Turkey, Spain and Italy. However, the UK’s industrial sector was severely affected by last year’s Brexit decision, with machine tool consumption predicted to fall by almost one third. Russian consumption is also expected to decrease, though only by one fifth.
In the Asian market, only India and Japan are showing positive growth. The North and South American market is performing the worst, primarily due to what the VDW describes as, “a very difficult situation in Brazil.”
Fortunately, the predictions for 2017 are more positive, with global investments rising by 1.5 percent and machine tool consumption by 2.1 percent. Europe is expected to remain in the top spot, with an increase of 4.1 percent.
According to the VDW, “Asia and America can achieve only an under-proportional rise in their machine tool consumption during 2017, of 1.7 and 0.9 percent respectively, but will at least be turning a minus into a plus.”
Machine Tools and the US Auto Industry
To take a specific example, the US auto industry is noted as doing comparatively well, with nearly all major manufacturers announcing projects for modernizing and upsizing their capacities. The industry as a whole is increasing its capital investment by 1.0 percent in 2017, according to the VDW’s forecasting partner, Oxford Economics.
The industry’s emphasis on reducing fuel consumption through lightweighting means that there is a growing demand for machining aluminum, combinations of lightweight materials and carbon.
Machine tool demand is also being boosted by the aerospace industry, which intends to increase capital investments by 5.6 percent in 2017, according to Oxford Economics. Other sources of demand include producers of food and packaging machinery as well as textile and plastic processing machines.
US-German Relations
The US imported more than 60 percent of its machine tool consumption, totalling approximately €7.5 billion (USD $8 billion), in 2015. With a share of 16 percent, Germany ranks second among the major supplier nations, after Japan.
From a German viewpoint, in 2016 the US was the second-most-important export market, with a share of almost 12 percent. Germany supplied the US with machines, parts and accessories worth just under €1 billion. Demand was chiefly for parts and accessories, machining centres, bending machines, laser systems and grinding machines.
“The US manufacturers of production technology also need to intensify their focus on international markets,” continued the VDW’s Executive Director. “Their position in the global market demonstrates how internationally competitive they are. With a volume of almost 5 billion euros [USD $5.3 billion], and a share of more than 7 percent, they rank among the top 10 of the most important manufacturers worldwide. They export around 43 percent of their production output. According to the VDW’s global statistics, most recently in 2015 exports had increased by a tenth.”
According to the VDW, deliveries to Germany fell by a double-figure percentage in 2016. Germany ranks sixth among the most important markets for US equipment manufacturers, while the US ranks eighth among the most important suppliers for Germany’s industrial sector.
For more information, visit the EMO Hannover website.