China is currently the world’s largest machine tool market with a total market value of 23 billion euros. Recently, China’s demand is 2.5 times that of the United States or Germany, which ranks second and third. In 2017, China’s huge machine tool consumption continued to rise, with an increase of 6% (this is calculated in euros, and in renminbi it is 9%).
Oxford Economics, the UK economic research institute of VDW’s forecasting partner, predicts that the growth rate will slow down in the coming years compared to 2016, especially 2017, but the expansion process will not stop. Forecasts show that all key statistics will increase in 2018 from total economic performance, industrial output and capital investment to machine tool consumption. In particular, machine tool consumption, which is an important index of bilateral trade quality, is expected to increase significantly after 6% after two years of strong growth.
In 2017, German exports increased by 8%. Among them, exports to the United States increased by 17%, and exports to Asia increased by 11%. Although exports to Europe have been at a relatively high level, it still rose in 2017, an increase of 3%. In terms of the volume of the Asian market, the large volume of business with China accounted for 22% of total German exports. In 15 important markets, especially the United States and Mexico, Italy, France, Austria, Switzerland and parts of Eastern Europe have increased significantly. In Asia, the growth rate of German manufacturers reached a double-digit middle segment. This is also the case in the Taiwanese market. It has just reached double digits in Japan, while the growth rate of the Korean market has decreased by nearly a quarter. It is predicted that the growth rate in 2018 is expected to reach 5%.
In 2017, German imports increased slightly by 2%. Among 15 important manufacturers, recessions have occurred in parts of Italy, France, the Netherlands, and Eastern Europe. Facts have proved that all other countries can increase their delivery scale. Preliminary estimates show that imports will increase by 5% in 2018. Traditionally, the clear supply relationship between German management companies and their foreign subsidiaries has played an important role.
In 2017, the consumption of German machine tools fell slightly by 1%. In 2018, its growth potential is about 5%. In order bookings, the growth rate reached 8% in 2017 and domestic demand was particularly strong (a 10% increase), laying the foundation for encouraging performance. In January 2018, demand increased by 9%, causing a sensation. Both domestic and export markets have achieved very good results. The last quarter of the past (November 2017 to January 2018) increased by 35%.
Looking to the future is more important than reviewing history. Digitizing and networking in the factory floor will lead to new challenges in the industrial sector, but it will also bring new opportunities. There are major issues, including electric vehicles and additive manufacturing, which will become decisive factors for future business operations.
