CECIMO’s Global Machine Tool Insights
Officials from machine tool associations, representing over 80% of global machine tool production, convened at the premier production technology trade fair to showcase their resilience and robustness in the midst of numerous global challenges. Despite a stable outlook for 2023, predictions for the worldwide machine tool industry are moderated by a multitude of international and economic obstacles. Leveraging the industry’s combined capabilities, cooperation, inventive thinking, and adaptability will continue to be crucial as the sector adapts to this ever-changing environment.
“At a time of political and economic uncertainty, the promotion of international cooperation is imperative” underlined Dr Heinz Jürgen Prokop, CECIMO’s President, in his opening remarks at the CECIMO’s Press Conference at EMO Hannover 2023. The event united machine tool industry leaders from the United States, China, Japan and Europe.
Marcus Burton, Chairman, CECIMO’s Economic Committee, emphasized CECIMO’s dedication to not only advocating for favorable conditions in the sector but also fostering international collaboration with machine tool associations worldwide. He unveiled significant findings from CECIMO’s recently released Global Machine Tool Report for 2022, which was made possible through such cooperation.
Burton shared that according to the most recent database update, global machine tool (MT) production reached 79.2 billion EUR in 2022, indicating an annual production increase of 11.9%. In the same year, MT production in CECIMO member countries saw a growth of 12.8%, totaling 25.3 billion EUR, maintaining CECIMO’s share of 32% of global MT production. On the consumption front, CECIMO countries accounted for nearly a quarter of global MT consumption, with a total value of approximately 18.7 billion EUR in 2022, a 25% increase compared to 2021.
During his presentation, Burton also shared the latest forecasts for 2023 regarding global and European MT production. He highlighted that MT production in CECIMO countries is expected to grow by approximately 5.5%, reaching nearly 27 billion EUR in 2023. However, global MT production is anticipated to remain relatively stable, slightly below the 2022 level.
In his concluding remarks, he pointed out that “In light of current developments, we have slightly downgraded our expectations. Nevertheless, we remain optimistic about the positive growth in European MT production in 2023 and our initial indications for 2024 are positive”.
He pointed out upcoming challenges. These include the obstacles posed by a slowing global economy, increasing interest rates, and geopolitical changes arising from the ongoing conflict in Ukraine. Together, these factors introduce a significant level of uncertainty into the immediate demand outlook for the machine tool industry.
Regarding the Chinese machine tools sector, Mr. Mao Yufeng, President of China Machine Tool & Tool Builders’ Association (CMTBA), noted that from January to July 2023, metal cutting machine sales declined by 4.3% to 10.76 billion USD compared to the previous year. Conversely, sales of metal forming machines increased by 6.9% to 6.16 billion USD during the same period.
He also mentioned that 2023 has seen increased efforts in restructuring the industry and shifts in China’s machine tool consumer market. This includes a drop in overall automobile production but a noticeable rise in the use of new energy vehicles. Alongside these market shifts, he pointed out several significant challenges contributing to the uncertainty surrounding the machine tool sector’s future. These challenges encompass a fragile economic recovery, ongoing inflation, instability in financial markets, and mounting debt pressures.
Turning to Japan’s metal cutting machine tool sector, Kazuo Yuhara, President, Japan’s Machine Tool Builders’ Association (JMTBA), highlighted remarkable growth in 2022. Total orders reached a record-breaking 1,759.6 billion yen, marking a 14.2% increase from the previous year. The production of metal-cutting machine tools also surged by 20.5% in 2022 compared to the previous year, reaching 1,078.8 billion yen, with strong growth evident in both exports and imports. Looking at the most recent period (January-July 2023), he noted a decline in order volumes for metal-cutting machine tools but expressed optimism about the demand impact resulting from investments in green, digital, and resilience-related areas.
As for the American machine tools industry, Douglas K. Woods, President, AMT – the Association for Manufacturing Technology in the USA, emphasized the continued stability of the industry in 2023 and 2024. This comes after a year of near-average consumption, totaling 9.6 billion USD in 2022. In 2023, the effects of the US monetary policy tightening are becoming evident, resulting in a slight decline in machine tool consumption, he added. However, indicators for 2024 suggest a recovery in machine tool production and imports, while exports stabilize, leading to increased consumption.
