ISMR April 2024 | Page 7

GENERAL NEWS

Strong exports for German machine tools recorded in 2023

Last year , according to the VDW ( German Machine Tool Builders ’ Association ), the German machine tool industry sold machines ( including parts and accessories to the value of 9.5 billion euros ) overseas ; nine per cent more than in 2022 .
Within Europe , America and Asia , exports to America grew the fastest ( increasing by 18 per cent ). This was driven primarily by the U . S ., the second largest sales market overall for the Germans ( accounting for a share of 15 per cent ). The U . S . purchased machines to the value of 1.4 billion euros , representing an increase of 19 per cent .
“ Our members are feeling positive about current and future developments in the U . S . market ,” reported Dr . Markus Heering , Executive Director , VDW . “ U . S . customers have lower costs than their German counterparts as a result of the lower energy prices there . Furthermore , the automotive industry is currently investing in heavy-duty engines before stricter emissions regulations come into force in 2027 . Mexico is also performing strongly . Many international companies are investing there because of the country ’ s proximity to the U . S . market .”
German machine tool exports to Mexico rose by 28 per cent , even more strongly than those to the U . S .
“ This put the Central American country ninth in the list of Germany ’ s most important export markets for machine tools . Accounting for sales of 326 million euros , Mexico is the second most important market in the American continent . In contrast , German machine tool business in South America fell by seven per cent compared to the previous year ,” said the association .
Exports to China and India
According to the VDW , German exports to Asia rose by seven per cent last year . Accounting for a share of 17 per cent , China is an important country for German machine tools . Compared to the previous year , exports there grew by six per cent to a volume of 1.6 billion euros but remained well below the last peak year of 2018 .
“ The economy in China is weak and the country continues to decouple itself from foreign imports in its effort to achieve industrial autonomy ,” reported VDW
Executive Director , Dr . Heering .
It is therefore important , said the VDW , to diversify to alternative growth markets instead , such as those in the ASEAN region . India is also gaining in appeal , said Heering . Numerous inquiries are being received from India , with German companies reporting plenty of activities , projects , and contacts there . However , the Indian market remains extremely sensitive to price .
“ India is currently the 13th most important export market . German exports there have risen by a quarter ,” confirmed the VDW .
The European market
Dr . Markus Heering , Executive Director , VDW .
Within the three regions , Europe is the largest sales region for German manufacturers , accounting for a share of more than 50 per cent . The German market , however , remained weakest of all , posting an increase of just six per cent and a volume of 4.9 billion euros according to the VDW .
“ Although most Western European countries have seen growth , machine tool manufacturers are sceptical about Europe ,” explained Heering .
“ New orders are declining due to the currently sluggish economy . This applies particularly to Italy , the world ’ s third largest sales market for German exports , which is now significantly scaling back its subsidies . Switzerland , on the other hand , is viewed positively as a stable sales market . Accounting for a volume of 430 euros , it ranks fourth among the most important export markets overall . Compared to Germany , customers in Switzerland benefit from lower energy costs and longer working hours . These factors are having a positive impact on investment . Northern Europe is also viewed positively , as are sales to Turkey which grew by 39 per cent ,” added the VDW .
“ Turkey is attracting political attention right now due to its trade relations with Russia . On the other hand , many machine tool customers in Turkey generate revenue in euros from their export business . The Turkish lira is currently weak , allowing them to use these funds to invest in production technology ,” outlined Dr . Heering .
Exports account for 70 per cent of the German machine tool industry ’ s sales . The sluggish international demand for capital goods , which is also affecting German customers , is holding back business according to the VDW .
“ Economic experts are not expecting the market to pick up again until next year ,” concluded Heering .
The German machine tool industry ranks among the five largest specialist groupings in the mechanical engineering sector . It provides production technology for metalworking applications in all branches of industry . In 2023 , with an average of 65,200 employees ( firms with more than 50 staff ), the sector produced machines and services worth around 15.2 billion euros . n
https :// vdw . de
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