ISMR June 2021 | Page 6

GENERAL NEWS

Turnaround for German machine tool industry

The German machine tool industry has registered positive quarterly results in orders for the first time since mid-2018 . According to the VDW ( German Machine Tool Builders ’ Association ), orders received in the first quarter of 2021 were 26 per cent up on the same period last year . Orders from Germany rose by 10 per cent , it confirmed . Overseas orders , however , were 35 per cent higher than in the previous year .
“ For several months now , the industry has been registering improving sentiment among customers . This is now finally being reflected in the figures ,” said Dr . Wilfried Schäfer , Executive Director of the VDW .
However , the low level of figures in the first quarter of 2020 was also part of the reason for the strong growth , as demand fell away sharply from March 2020 because of the pandemic . Comparison with the first quarter of 2019 therefore provides a more realistic picture . Here , total orders are still 14 per cent below the level at that time , while overseas orders are just one per cent higher .
“ That means we still have a long way to go before we return to a reasonable level ,” Schäfer summed up .
“ The upward trend in overseas orders in the current year is primarily attributable to the noneuro economies . China is driving the global economy forward and fuelling demand . It has been joined in this role by the new beacon of hope , the U . S . However , the recovery is relatively broad-based , as Europe is now also reviving . Many areas have a lot of catching up
German Machine Tool Industry Orders achieve turnaround
Total orders ( index , nominal ) 160
140
120
100
80
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to do . The positive picture is completed by the capacity utilisation figure , which has risen from a low of 67 per cent last summer to its current rate of 79 per cent ,” added the VDW .
Employment represents a delayed indicator of economic development and is falling at present . In February 2021 , the sector employed around seven per cent fewer people overall than in the previous year . This translated into 66,800 men and women .
“ This is a very moderate figure compared to the decline in production and orders . It shows how important it is for companies to retain their well-qualified staff . Short time working was a great help here ,” said Wilfried Schäfer . Nevertheless , companies are struggling elsewhere . Bottlenecks in supplies are
12 months moving average original values
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Order bookings in the German machine tool industry .
Order intake % change to previous year
1Q 2021 Total + 26 Domestic + 10 Foreign + 35
Note : Index basis shipments 2015 = 100 , data until March 2021 , Sources : VDMA , VDW
VDW | Order charts | 17.05.2021
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hampering production . In a recent pandemic survey , almost half of the machine tool manufacturers surveyed said they were experiencing serious problems with the supply of electronic components , especially controls . Around 46 per cent were experiencing difficulties with steel and metal products .
“ Companies are already voicing fears of not being able to process orders on time because of the severe disruptions in the supply chain ,” Schäfer reported .
The VDW expects production levels to increase by six per cent in the current year . The resulting volume of 12.9 billion euros is above that of the 2009 / 2010 financial crisis , but still far below the record years of 2018 and 2019 . n

Q1 robot orders surge 20 % over 2020

Robot orders in the first quarter of 2021 were up 20 % over the same period in 2020 , with substantial increases in purchases coming from companies in metals ( up 86 %); life sciences / pharmaceutical / biomed ( up 72 %); food & consumer goods ( up 32 %) and other non-automotive industries ( 12 %). According to industry statistics announced by the Association for Advancing Automation ( A3 ), North American companies purchased 9,098 units valued at US $ 466 million in Q1 , with non-automotive companies purchasing 28 % more robots over Q1 2020 and automotive OEMs and component suppliers combined seeing a 12 % increase year-overyear .
“ The strong Q1 for robot orders was the second-best start to any year on record ( 2017 ) and the second-best quarter on record for non-automotive orders , behind Q4 of 2020 . Q4 2020 was also the secondbest quarter ever for North America robot sales with a 64 % increase over Q4 2019 . In 2020 overall , for the first time , yearly orders of robots from non-automotive sectors surpassed automotive robot orders , as sales of robotic units in North America increased 4 % in 2020 from 2019 ,” explained A3 .
“ While advances in robot technology , ease of use and new applications remain key drivers in robot adoption , worker shortages in manufacturing , warehousing and other industries are a significant factor in the current expansion of robot use that we ’ re now seeing . COVID didn ’ t create the move toward automation , but certainly has accelerated trends that already were underway ,” it highlighted .
While robotic purchases from automotive manufacturers can be highly cyclical , the increase from non-automotive companies shows a promising outlook for the growth of robotics and the automation industry overall ,” said Jeff Burnstein , President , A3 .
“ We expect increasing demand for robotics and automation to continue in North America and throughout the world after the pandemic has ended ,” Burnstein added . “ We also expect that the increased use of automation will help companies be better prepared to face any future pandemics .” n
www . automate . org
6 | sheetmetalplus . com | ISMR June 2021