GENERAL NEWS
VDW expects production growth in 2023
The VDW ( German Machine Tool Builders ’ Association ) is expecting production in the machine-tool industry to grow by nine percent this year to a volume of 15.5 billion euros . In nominal terms , this is only ten percent below the record result of 2018 .
At its annual press conference recently , Franz-Xaver Bernhard ( Chairman of the VDW ) said : “ We have largely overcome the effects of the pandemic . This is reflected in the growth in production and order levels , which are only just short of the record result of 2018 .”
The industry has entered the current year with a significant backlog of orders . Even though the gap between orders and sales is currently closing , the German Federal Statistical Office is still reporting a twelvemonth backlog of orders for the machine-tool industry .
“ This means that companies are well placed to weather any slump in orders in the first half of 2023 , as suggested by the most recent figures ,” explained Bernhard . Capacity utilisation is also rising steadily , having returned to 91.1 per cent in January 2023 . The latest VDMA flash survey conducted at the beginning of December 2022 shows that 45 per cent of machine tool manufacturers are cautiously optimistic about the current year .
“ In macroeconomic terms , the forecast is underpinned by the assumption that inflation has peaked . Energy and commodity prices have now begun to fall again . The lifting of COVID restrictions in China , the largest market , will stimulate business . Other Asian countries , such as India and the ASEAN region , are also contributing to growth . Global
Image : Shutterstock . com .
investment is rising for the third year in succession , albeit less dynamically than in the previous two years . International machinetool consumption is benefitting from this ,” explained the VDW .
In Germany , too , capital expenditure is expected to rise again after three sluggish years . Here , the automotive industry in particular had reined in its spending after the chip shortage made it impossible to produce vehicles .
“ The machine-tool industry has taken advantage of the transformation process among automotive manufacturers and redoubled its efforts to diversify its customer structure . According to our customer structure survey , the share of the automotive sector fell from almost 43 per cent in 2019 to around 31 per cent in 2021 ,” outlined the VDW chairman . Making gains , by contrast ,
Franz-Xaver Bernhard , Chairman , VDW . are engineering and the manufacture of metal products .
“ Sentiment has also improved in Germany . The Ifo Business Climate Index for the capital goods and machine tool sectors rose sharply in January . There has even been a turnaround in expectations for the automotive industry . Also , the global Purchasing Managers ’ Index is rising slightly for the first time in twelve months . This is particularly apparent in the eurozone with such important markets as Italy , Spain and France , but also in the UK and Turkey ,” added the VDW .
Double-digit growth in 2022
According to VDW estimates , machine-tool production grew by ten per cent last year , three points more than had been expected in Autumn 2022 . This corresponds to a real increase of three per cent and a volume of around 14.1 billion euros .
“ At last , more machines can now be completed and delivered , because the supply situation for many metal components has improved ,” pointed out Bernhard . However , electronic component supplies remain tight .
“ Following a weak previous year , domestic sales grew by 16 per cent , more than twice as fast as exports at only seven per cent . Europe came last within the Triad , at -3 percent . Eastern Europe performed particularly weakly because trade with Russia has largely collapsed . Cumulatively , German shipments have declined by nearly 80 per cent since 2018 . Italy has performed exceptionally strongly in the past two years , driven by a substantial subsidy policy for the purchase of machinery ,” explained the VDW .
“ Exports to Asia rose by 11 per cent . There was strong growth in exports to Thailand , India , Japan and South Korea , in particular . China was the main driver the year before . In 2022 , the zero-COVID policy made machine deliveries more challenging . Some exports were replaced by local production . Finally , the Americas were the main driving force with a 24 per cent increase , driven by Brazil , the USA and Mexico . As the second largest market , the USA is gaining in importance and , accounting for an export share of 14.7 percent , is closing in on China , at 18.7 per cent ,” it added .
The total workforce was put at 65,400 in December 2022 in establishments with more than 50 employees . That was two per cent higher than in the previous year . There has been a 13 per cent reduction in the workforce since the pandemic began in 2019 . Production