FOCUS ON GERMANY
THE PATH OUT OF
VDW Chairman , Dr . Heinz-Jürgen Prokop .
“ The VDW sees an improved mood in the economy , which is raising the willingness to invest .”
LOCKDOWN
The German machine tool industry sees light at the end of the economic tunnel ...
ECONOMIC GROWTH 2021 The global economy is growing again , China ’ s GDP continuously increasing
The VDW ( German Machine Tool Builders ' Association ) expects production in the German machine tool industry to grow by six per cent to around 12.6 billion euros in 2021 . At the association ' s annual press conference , Chairman Dr . Heinz- Jürgen Prokop stated that the improved mood in the economy is raising the willingness to invest .
" After two years of great restraint , there is now a strong need to make up ground ," he said .
According to the VDW , the global Purchasing Managers ' Index and the German ifo Business Climate for the capital goods industry are on course for growth . China is now the principal driving force behind the global economy . The USA , too , is providing a boost following U . S . President Biden ' s election victory .
" However , the prerequisites for companies ' regaining their confidence and investing
INDUSTRIAL PRODUCTION 2019-2021 Sharp downturn in Europe and Americas
Industrial Production , % YOY
are beating the coronavirus pandemic and sketching out a sensible roadmap for gradually emerging from lockdown ," said Prokop .
Growth for 2021
The automotive industry , in particular , the largest customer for machine tools , is benefiting from the upswing in China . Electronics , food processing , logistics and parts of the medical technology sector have been doing good business during the crisis , said the VDW . This is set to continue . In Europe , too , investments are expected to rise again by 10 per cent after the major slump .
The last two years have been very difficult for many reasons , but this restraint is now having a positive effect on the machine tool industry . Oxford Economics , the VDW ' s forecasting partner , is predicting strong growth of 35 per cent for
Source : Oxford Economics , February 2021
Note : GDP growth rates calculated in local currency , Source : Oxford Economics , February 2021
orders in 2021 . There were already indications of this in November and December 2020 .
" Nevertheless , it won ' t be easy to get back to pre-coronavirus levels ," explained Dr . Heinz- Jürgen Prokop .
The VDW confirmed that orders fell by 30 per cent in 2020 due to the coronavirus crisis , following a decline of a similar magnitude the year before . All other key figures also slipped deep into negative territory in 2020 . Production was down 31 per cent , exports down 29 per cent and domestic sales down 33 per cent . The hopedfor turnaround in the current year is ‘ therefore starting from a low level ’, said the VDW .
In 2019 , it added , capacity utilisation was still at 88 per cent . The decline in orders caused this to fall to just under 72 per cent in 2020 . This is comparable to levels seen
The German machine tool industry sees attractive opportunities in the Green Deal and the 2050 climate protection targets
18 | sheetmetalplus . com | ISMR April 2021