BMW M850i xDrive CABRIO on the production line ( Shutterstock ).
Almost all machine tool companies believe that the shortage of skilled workers is just as serious a problem as the supply bottlenecks
of infections falls . However , the weak start to the year is expected to hold back the overall result . China ’ s declared zero-COVID strategy , added the VDW , is also making it difficult to normalise supply chains .
The sector bounced back with strong orders last year following the deep slump in the machine tool industry caused by the 2020 pandemic . According to VDW estimates , it produced roughly 12.7 billion euros worth of machinery and services in 2021 . This represented a rise of four per cent .
Business was driven by exports , which grew by eight per cent , twice as fast as production . The Americas-led overseas business recorded an increase of 13 per cent , followed by Asia at eleven per cent and Europe bringing up the rear at five per cent . Among Germany ’ s ten largest markets , the Czech Republic , Italy , Mexico , China and the Netherlands recorded double-digit growth . China bounced back following a sharp decline in 2020 .
“ In contrast , domestic sales fell by five per cent due to the automotive industry ’ s reluctance to invest . There was only a slight increase in consumption of one per cent . This was carried by imports , which rose by more than a tenth . Capacity utilisation was 87.2 per cent in January 2022 , compared to 72.7 per cent a year earlier . At 64,000 employees , employment in December was 6.1 per cent below the previous year ’ s figure ,” said the VDW .
The chip shortage resulted in a decline in orders at the beginning of the COVID pandemic . This , in turn , caused the shut-down of capacities and the diversion of supplies to the consumer goods industry . It takes time to establish production capacity for new chip generations . Cargo space is also being restricted by airport and port closures in China as part of the country ’ s strict zero COVID and lockdown policy .
“ This can escalate again at any time ,” Bernhard warned . For some time now , businesses have also been stockpiling , which has led to higher demand for some products and put additional pressure on suppliers .
There are very limited opportunities for the machine tool industry to influence and compensate for this problem in the short term . Changing over to a new generation of chips takes time , as this can easily involve several man-years of development .
“ For the time being , the only option is to be highly creative in the procurement of materials and to accept higher prices that may not be possible to pass on ,” said the VDW chairman . In the medium term , it will become increasingly important to establish stable supply chains and diversify the number of suppliers to reduce dependencies .
‘ Dual ’ vocational training
“ Almost all machine tool companies believe that the shortage of skilled workers is just as serious a problem as the supply bottlenecks . According to a survey , more than two-thirds of manufacturers intend to increase their core workforce in the current year . In contrast , the number of engineering vacancies in December 2021 was roughly twice as high as at the end of 2020 . At the same time , the number of applications for apprenticeships and the number of apprenticeship contracts being concluded are on the decline ,” explained the VDW
The availability of skilled workers is crucial if German companies are to remain competitive in the highly specialised machine tool industry .
“ Skilled workers require skilled training ,” Bernhard said . He called on companies and politicians to be proactive in highlighting the attractiveness of vocational training . This opens just as many opportunities , he said , as taking a degree course . Companies need to emphasise their attractiveness , as well as provide superior training and offer special funding where necessary .
“ It is important to bind apprentices to the company upon completing their training by offering them further training , career advancement opportunities and appropriate salary increases . Politicians , for their part ,
Supply bottlenecks and skills shortages
“ Bottlenecks in the supply chains of electronic components and metal products were key negative factors for the industry last year , and they have not yet been resolved ,” Bernhard reported . Nearly all machine tool industry manufacturers were affected by the end of 2021 , according to a survey .
The chip shortage , in particular , is hitting companies two-fold . On the one hand , the automotive industry as a key customer only has limited supply capability . On the other hand , there are not enough chips for controllers ( one of the most important components in machine tools ), gateways , edge computers or drives . This is delaying the completion of machine orders .
44 | sheetmetalplus . com | ISMR March 2022