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    Manufacturing

    Machine tool output is on the up

    • By MTDCNC
    • July 13, 2021
    • 2 minute read

    German machine tool industry orders in the first quarter of 2021 were 26% up on the same period last year. Orders from Germany rose by 10% with overseas orders 35% higher than in 2020.

    “For several months, the industry has been registering improving sentiment among customers. This is finally being reflected in the figures,” says Dr Wilfried Schäfer, Executive Director of the VDW (German Machine Tool Builders’ Association). However, the low basis of the 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 as a result of the pandemic. A comparison with the first quarter of 2019, therefore, provides a more realistic picture. Here, total orders are still 14% below the level at that time, while foreign orders are just 1% higher. “That means we still have a long way to go before we return to a reasonable level,” Schäfer sums up.

    The upward trend in foreign orders is primarily attributable to non-Euro economies. China and the US are driving the global economy forward and fuelling demand. The positive picture is completed by the capacity utilisation figure, which has risen from a low of 67% last summer to its current rate of 79%.

    Manufacturers are challenged by bottlenecks in the supply chain with almost half of the machine tool manufacturers saying they were experiencing serious problems with the supply of electronic components, especially controls and 46% are 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 reports.

    The VDW expects production levels to increase by 6% in 2021, a volume of€Euro12.9bn that is above the 2009/2010 financial crisis, but still far below the record years 2018 and 2019.

    https://cdn.mtdcnc.global/cnc/wp-content/uploads/2021/07/09112930/Graph-to-use-640x360.jpg

    Machine tool output is on the up

    German machine tool industry orders in the first quarter of 2021 were 26% up on the same period last year. Orders from Germany rose by 10% with overseas orders 35% higher than in 2020.

    “For several months, the industry has been registering improving sentiment among customers. This is finally being reflected in the figures,” says Dr Wilfried Schäfer, Executive Director of the VDW (German Machine Tool Builders’ Association). However, the low basis of the 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 as a result of the pandemic. A comparison with the first quarter of 2019, therefore, provides a more realistic picture. Here, total orders are still 14% below the level at that time, while foreign orders are just 1% higher. “That means we still have a long way to go before we return to a reasonable level,” Schäfer sums up.

    The upward trend in foreign orders is primarily attributable to non-Euro economies. China and the US are driving the global economy forward and fuelling demand. The positive picture is completed by the capacity utilisation figure, which has risen from a low of 67% last summer to its current rate of 79%.

    Manufacturers are challenged by bottlenecks in the supply chain with almost half of the machine tool manufacturers saying they were experiencing serious problems with the supply of electronic components, especially controls and 46% are 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 reports.

    The VDW expects production levels to increase by 6% in 2021, a volume of€Euro12.9bn that is above the 2009/2010 financial crisis, but still far below the record years 2018 and 2019.