JPG PDF PNG ? zip

PES MEDIA

  • Articles
    • News
    • Features
    • Products
  • PES TV
  • Magazine
    • Digital Editions
    • Subcontractor Sourcing Guide
    • Latest Newsletter
    • Editorial Programme
    • Search Engine Directory
  • Literature
  • Events
  • Associations
  • Subscribe
  • Advertising
    • Editorial Programme 2020
    • Digital Advertising
    • Media Pack 2020
  • Contact Us

Sharp fall in orders for German machine tool industry

22 May 2019 • In News
Sharp fall in orders for German machine tool industry

Dr Wilfried Schäfer

Orders received by the German machine tool industry in the first quarter of 2019 were 21% down on the same period last year. Orders from Germany fell by 10% whereas those from abroad were down by 27%.

“These dips are due not least to the extremely buoyant first half of 2018,” said Dr Wilfried Schäfer, executive director of the VDW, the German machine tool builders’ association, commenting on the result. This base effect is expected to decrease significantly in the second half of 2019.

“Nevertheless, the cooling of the global economy is now finally impacting on the German machine tool industry,” he continued. “Domestic business, long a counterweight to the decline in foreign orders, has lost a great deal of momentum. The only bright spot is the Eurozone, which is now much more stable and saw only a 3% downturn. However, it can only stabilise the loss from the non-Eurozone to a marginal extent.”

The causes of the downturn are easily identified: politically motivated disruptions to world trade which affect the emerging markets, weak growth in China, structural weaknesses in the automotive industry (the largest client market), and the slump in the semiconductor industry.

“In 2018, the international automotive industry halved its capital spending to less than 4% compared with the previous year, and it is likely to plan an even lower figure for 2019,” Mr Schäfer explained.

Machine tool order levels are below those of sales for the first time since mid-2014. Sales increased by 6% in the first three months of 2019.

“Many companies are currently relying on their order backlog from the previous boom,” Mr Schäfer affirmed. “The excessive delivery times are shortening – which makes procurement more flexible for customers and reduces plant production throughput times for manufacturers. Capacity utilisation In April of this year was at 86.5% and thus below last year’s average.

“The VDW nevertheless expects production to grow by 1% in 2019,” Mr Schäfer emphasised. “We are expecting demand to pick up in the second half of the year. The order backlog should also provide sustenance for some time to come.”

VDW
www.vdw.de

Dave Tudor

Author

Dave Tudor
Editorial Director

Tags

VDW

Share This Article

Tweet

Share

Share

Share

Subscribe to our FREE Newsletter

Related Articles

German machine tool industry continues its decline

1 month ago Michael Tyrrell
news

Sharp decline in machine tool orders: many sectors reluctant to invest – VDW

4 months ago Dave Tudor
news

Manufacturing reacts to Boris Johnson and Conservative Party election win

3 days ago Michael Tyrrell
news

Most recent Articles

Editor’s comment for December 2019

2 days ago Dave Tudor
features

New Government urged to use employer-led approach to skills crisis

2 days ago Michael Tyrrell
features

How 5G will revolutionise the manufacturing industry

3 days ago Michael Tyrrell
features

Share This Article

Tweet

Share

Share

Share

Subscribe to our FREE Newsletter

November 2019

Subscribe to our FREE Media Network

INFORMATION

    • Contact Us
    • Privacy
    • Cookie Policy

CATEGORIES

  • Features (2,385)
  • Literature (159)
  • News (4,515)
  • Products (1,338)
  • Video (392)

TAGS

  • REM Systems
  • G-Code
  • Garant Tool Grinding
  • motorsport vision racing
  • Quality

OUR OTHER MAGAZINES

Aerospace Manufacturing Logo Composites in Manufacturing Logo

CONTACT INFORMATION

  • PES Magazine
  • MIT Publishing
  • Featherstone House
  • 375 High Street
  • Rochester
  • Kent
  • ME1 1DA
01634 830566

Back To Top

1998 - 2019 © MIT Publishing
Site designed & developed by TJC