GENERAL NEWS
year . Notably , inflation in the euro area has sharply declined from its October 2022 peak of 10.6 %, reaching a two-year low of 2.9 % in October this year . According to the latest figures , we have slightly lowered our expectations for 2023 ,” it continued .
CECIMO ’ s machine tool production is expected to grow by approximately 3.2 % and reach 26.2 billion euros in 2023 , reaching a share of around 34 % of world machine tool production . On the consumption side , with a value of around 18.7 billion euros in 2023 , CECIMO countries are expected to maintain their share of almost a quarter of global machine tool consumption .
Expectations for machine tool exports are also positive , with the latest estimates showing a further increase of 5.7 % in 2023 , while import growth is expected to occur at a slightly reduced pace of 2.5 %. The USA and China are expected to remain the two main export destinations for European machine tool producers in 2023 , with the USA in first place .
On the demand side , however , a less optimistic trend was observed over the past few quarters : in terms of the CECIMO8 total orders index *, the average for the first three quarters of 2023 was around 12 % lower than in the same period last year , with domestic orders declining more sharply ( -17 %) than overseas orders ( -9 %).
“ Due to the deterioration in business sentiment indicators closely linked to our sector and the slowdown in the global economy , our latest trend indications for total orders show a downward trend before stabilising at the end of 2024 . The deterioration on the demand side is also confirmed by the latest Oxford Economics machine tool consumption forecast , published in October 2023 , which shows that global machine tool consumption is expected to remain stable in 2024 . Some important machine tool-consuming markets for CECIMO ’ s machine tool builders , such as the United States , are expected to decline ,” commented CECIMO .
In line with this , “ the coming year is expected to be more challenging for global machine tool production and consumption ,” said Marcus Burton , Chairman of the Economic Committee , in his presentation . In his concluding remarks , he stressed that the main concerns for demand growth in the short term are related to the challenges associated with the subdued investment climate . But he also stressed that in the long term , investments related to the green and digital transition will be a key driver of machine tool demand . n
£ 100K machinery boost for Wrekin Sheet Metal
Wrekin Sheet Metal , a fabrication and assembly specialist in Telford ( UK ), has received more than £ 113,000 in research and development ( R & D ) tax relief from the UK government for advances to its machinery . The business worked with Ryan , a global tax services and software provider , on its most recent tax relief claim .
“ We are always trying to stay ahead of the game and R & D is an important part of that . The team at Ryan was professional and easy to work with , and very thorough . The money is being invested straight back into the business . We have made significant investments in the past couple of years , including £ 2 million in new machinery . We are also investing in the development of our own team members . There is a big skills shortage in the industry , so it ’ s critical that we ensure the foundations are strong so that we can continue to grow ,” commented Simon Orpe , Sales Director , Wrekin Sheet Metal .
At any one time , Wrekin could be working on 450-500 different components from ten different industries . Upgrading its machinery enables Wrekin to mass-produce non-standard products for the automotive , aircraft and security industries , among many others .
“ Historically , manufacturers had machine shops to produce the components and parts that they needed to build the products they sell . Over the past two decades , many companies have changed the way that they operate , and outsourcing to businesses like us has become much more common ,” it told ISMR .
“ Our extensive range of technical equipment bends , shapes and presses components as a standard process . However , on certain items , a complete
Simon Orpe , Sales Director , Wrekin Sheet Metal .
Kully Nijjar , Independent Partner , Ryan .
research and development project is required because the knowledge or machinery to [ manufacture ] certain shaped parts may not be available within the industry ,” it continued .
Some of Wrekin ’ s most recent R & D activity involved producing components for commercial refrigerators . This involved developing new advanced methods of sheet metal folding , pressing and cutting as well as designing machine adaptations , among other tools , for testing prototypes and delivering the finished product .
Kully Nijjar , authorised independent partner of Ryan , added : “ Wrekin operates in a very competitive environment , so R & D ensures that it stays at the forefront of its industry . The company is committed to finding new ways to innovate , which helps it grow but also produces great results for its customers . The tax relief it has received will play an important role in helping it to develop more R & D projects .”
“ As well as undertaking R & D activity when tasked to produce specific components , we continuously investigate how to make further efficiencies and improvements ,” the manufacturer concluded . n
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ISMR December 2023 / January 2024 | ismr . net | 7