During the first half of 2023 , demand for machine tools showed signs of slowing . However , some machine tool-consuming industries benefited from improved supply chains . Ultimately , EVOLIS expected investment growth in machine tool client sectors to slow to 2.5 % in 2023 . Demand for machine tools was expected to increase by around 6 % in 2023 .
According to its 2023 outlook , published in September 2023 , manufacturers anticipated a slight growth in 2023 despite a weakening order flow . Among EVOLIS manufacturers ( manufacturers of equipment for handling , construction , fluid treatment , production machines and industrial robots ) recruitment difficulties , the high level of raw material prices and supply problems fade very gradually . As a result , delivery times and stocks were improving .
“ As supply constraints are resolved , new demand constraints emerge . Impacted by the rise in inflation , more restrictive access to credit and a less favourable cash flow situation for companies , it is now expected to slow down . The flow of new orders is slowing , as evidenced by the decline observed in order books . However , these are still at a high level which bodes well for a smooth 2023 , despite a more difficult second half ,” confirmed its report .
Consumables and equipment for machine tools
According to EVOLIS analysis in February 2024 , French demand for consumables and equipment for machine tools recorded double-digit growth in 2023 .
“ Sales of consumables for machine tools increased by 11 % over the year , following an increase of 10 % observed in 2022 . Sales of equipment experienced very robust growth of around 30 % in line with growth levels for 2022 . Although price increases can partly explain this growth , these advances demonstrate activity that has remained sustained in French industry and the resilience shown by productive investment in 2023 ,” outlined EVOLIS .
Construction materials
Bridge at La Rochelle ( image : Karim Manjra , Unsplash .)
“ The 2023 construction equipment market should end virtually stable . Unit sales , all equipment combined , should be , identical to those recorded in 2022 ,” added EVOLIS .
On the other hand , a decrease in sales of materials of around 10-15 % is expected in 2024 .
“ Purchases of materials for the construction , improvement and
Earthmoving equipment maintenance of buildings will be down , in line with the fall in activity predicted by the construction sector for this year . Investment by rental companies will also decline . Conversely , investment by public works companies and , in general , public clients ( municipalities , départements and regions ) could be maintained and thus limit the anticipated decline in the market ,” it commented in January this year .
Sales of earthmoving machines in the French market were very dynamic in 2023 .
“ 2023 was therefore a very good year for manufacturers , who were able to sell their very large stock of orders accumulated since 2021 throughout the year . Sales of large equipment ( with the exception of tracked tractors ) should show a drop of almost 8 % while for compact earthmoving equipment , sales could show an increase of around 6 % in 2023 , driven largely by mini excavators (+ 7 %),” explained EVOLIS .
Arc welding equipment
Tractor manufacturing in Beauvais , France ( image : AGCO ).
According to a survey carried out by EVOLIS in June last year , the French market for arc welding equipment reached € 190 million in 2022 . After strong growth during the first half of 2022 , sales of arc welding equipment slowed down in the second half of the year .
In connection with the unfavourable economic situation which negatively impacts certain customer [ segments ] in this sector in France and , in particular , the Building & Public Works sector , the first quarter of 2023 seemed to be characterised by a slight slowdown in demand , compared to 2022 . Over 2023 , we expect the French welding market to stabilise . Activity will remain supported by new opportunities brought about by the ‘ France 2030 Plan ’ and projects linked to the decarbonisation of industry ,” outlined EVOLIS .
Macro-economic forecasts
Sharp silver hexagons at La Défence , Paris ( image : Aquaryus15 , Unsplash .
According to the European Commission ’ s macro-economic forecast for France ( published in February 2024 ), French GDP is estimated to
40 | ismr . net | ISMR March 2024