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European Machine Tool Industry Association predicts that the industry situation will stabilize this year
The European Machine Tool Industry Association recently published its 2013 situation assessment report in Brussels. The report indicates that the output value of the European machine tool manufacturing sector is expected to remain roughly stable compared to the previous year, reaching around 22.5 billion euros. However, the industry is facing challenges due to weak domestic demand, which has pushed many companies to rely heavily on exports.
According to the report, in 2012, the European machine tool industry generated an output value of 22.2 billion euros, marking a 6% increase from the previous year. Exports also reached a record high of 18.8 billion euros, demonstrating the strong international presence of European manufacturers. Despite this success, the domestic market experienced a 2% decline in demand, largely due to reduced business confidence across Europe.
The association highlighted that European machine tools continue to hold a competitive edge globally, with exports reaching all corners of the world. In 2012, the trade surplus stood at 10.5 billion euros. However, the ongoing economic uncertainty since the 2008 financial crisis has created significant challenges for the sector. Tight credit conditions and limited access to financing have hindered growth, particularly for small and medium-sized enterprises (SMEs), which make up the majority of the industry.
Many SMEs struggle to secure funding due to strict lending policies by banks, leading to a lack of investment and innovation. This has contributed to sluggish domestic demand, which remains a major obstacle for the industry's long-term development. While European machine tool manufacturers have found success in emerging markets, over-reliance on exports has put pressure on profit margins and limited the ability to invest in research and development.
Martin Kapp, president of the European Machine Tool Industry Association, emphasized that reviving domestic demand is essential for the future of the industry. He believes that without stronger local consumption, innovation and competitiveness will continue to suffer.
The association represents 15 national machine tool manufacturers' associations, covering nearly 1,500 companies across Europe and Turkey. Approximately 80% of these are SMEs, accounting for 97% of the region’s machine tool production capacity. Together, they represent about one-third of global machine tool manufacturing.