MACHINE TOOL SECTOR SEEKS TO CLOSE RANKS AROUND THE INDUSTRY

· In a year of disparity between incoming orders and activity, revenue is up by 1.66%, marking a new record, while orders are down by 23.11%

· Weakness and indecision in Europe is worrisome in the face of strict protectionism in China and the US

San Sebastian, 20 February 2025

The advanced manufacturing and machine tool sector reached turnover of 2,193.11 million euros in 2024, which was 1.66% up on 2023, setting a new record. Despite a very difficult economic and commercial outlook, the strong order backlog accumulated throughout 2022 and 2023 has allowed us to maintain turnover slightly above 2023. The two main sub-sectors, metal cutting and metal forming, have performed similarly in terms of turnover, with an increase of 1.33% for metal cutting and 1.62% for metal forming.

Exports increased by 1.73%, reaching a record high of 1,639.73 million euros. In this case, metal cutting has recorded a positive performance, up by 1.41%, while metal forming is down by 5.16%.

The main destinations of our exports sales were: Mexico, the United States, China, Germany and Italy. Followed by France, Portugal, Türkiye, India and the United Kingdom. Notably, Mexico topped the exports ranking for the first time, doubling the figure for 2023. The United States also recorded a very high figure, 8% up on what was achieved in 2023. China is up by 25% with respect to 2023, although these exports are a mirage that does not conceal the slump in orders from this country. Germany, in fourth place, has maintained its figure practically unchanged (+1%) and Italy, in fifth place, has seen the largest drop, losing more than half of the figure recorded in 2023. We should remember, however, that Italy is coming out of years of major activity thanks to government incentive schemes for investment in production.

This ranking clearly reflects how North America, with Mexico and the US, have made up for the weakness experienced for various reasons by both Europe and Asia.

Orders recorded in 2024 are down 23.11% with respect to orders received in 2023, after two years of strong increases. On the domestic market, the drop is 45% while exports are down by 20%. If we analyse the two main sub-sectors, metal cutting has held up somewhat better, even through there was a 8.8% drop, whereas metal forming suffered a sharp fall of 40.8%.

In the case of orders, the US stands out in first position, followed by Saudi Arabia with a very significant figure attributable to a one-off operation, and then Germany, Mexico and Italy. The top ten is completed by China, Türkiye, Canada, France and the United Kingdom.

Xabier Ortueta, general manager of AFM: “The order dynamics of the last 12 months have led to a decrease in the portfolio, and this means that we also expect a significant, although not dramatic, drop in turnover at the end of the year. The standstill in automotive investments (closely linked to our metal forming sub-sector) is concerning, plus the state of our main markets, which currently only portends a very difficult year and a further decline in incoming orders also in 2025. The weakness of Europe (especially Germany, France and Italy), protectionism in China and uncertainty in the US are factors against which a sector as crisis-prone as ours will have to fight resolutely.

On the upside, the good performance of some sectors such as aerospace, railways, defence and some branches of power generation, will continue to present opportunities in a very complex and competitive scenario. As always, we will surely know how to take advantage of them”.

The advanced manufacturing and machine tool cluster warns of the crossroads at which we Europeans find ourselves and of the need for a change of direction in order to recover the leadership lost by our industry.

José Pérez Berdud, president of AFM Cluster: “There is no doubt that we are at a critical time for the future of production in Europe. Europe's industrial weakness, largely caused by our own decisions, is very worrying. Many years ago we opted to hand over the baton in various sectors that have proven crucial today, relocating their manufacturing or outsourcing resources, strengthening the recipient economies (electronics, microelectronics and semiconductors, energy storage, defence, etc.). In addition, the necessary commitment to sustainability has led us to make some decisions that have turned out to be hasty, and without properly calculating the consequences. Thus, over the past 6-8 years, we have also managed to squander part of our leading position in the automotive world.

Today we find that, in the face of our weakness, the other blocs, China, the US, and even India, have greatly strengthened their positions. The growing and fierce competition in all markets will be the usual dynamic, and we must continue to invest and take risks in order to innovate and offer a differential to our customers.

Europe must ask itself whether it has a true interest in leading the world. Or perhaps the time has come to at least take the necessary steps so that we can once again pilot our own future. A large part of those decisions is to protect our viable industry from the tsunami that others are designing in order to prevail. While respecting our values, always defending fair trade, real competitiveness and sustainability, we must invest in modern production equipment, encourage the intelligent purchase of our excellent products, and favour robust industrial positions in critical sectors. Some have already been mentioned and the machine tool sector is, without a doubt, one of them.

In this sense, we value very positively the first step taken by the Basque Government with the Industrial Defence Action Group, and we ask that initiatives such as this be scaled up at national and European level”.

From 3 to 5 June, BEC will host the industrial gathering of the year. The largest meeting point dedicated to Smart manufacturing will simultaneously host Addit3D (additive manufacturing and 3D printing), Bedigital (digital technologies for industrial application), Subcontratación (processes for manufacturing and industrial equipment and supplies), Maintenance (industrial maintenance), Pump&Valves (pumps, valves and equipment for industrial processes), and the new feature of this year, WeAR (automation and robotics for all industries). Alongside these, WORKinn Talent Hub, an integral space for talent in the industrial field.

From 22 to 26 September, EMO, the world's largest event for machine tools and advanced manufacturing, will be held in Hanover, Germany, where visitors - more than 92,000 from 140 countries at the last edition in 2023 - can familiarise themselves with the latest trends in industrial production under the motto "Innovate Manufacturing"

AFM CLUSTER is made up of over 800 businesses belonging to the advanced and digital manufacturing sector and constitutes the country's top and most powerful industrial ecosystem: manufacturers and importers of manufacturing technologies such as machine-tools and 3D printing, cutting tools and components, hand tools, machine-tool and metal-mechanical transformation companies, automation technologies, robotics and industrial digitalisation, and industrial startups. The world of advanced manufacturing brought together and represented in one large organisation.

•   25 FEBRUARY 2025:  INDUSTRY SUMMIT, Madrid
•   19 MARCH 2025: AIMHE GENERAL ASSEMBLY, Barcelona
•   16 MAY 2025: AFM CLUSTER GENERAL ASSEMBLY, Donostia-San Sebastian
•   3-5 JUNE 2025: +INDUSTRY, Bilbao
•   14-17 JUNE 2025: CECIMO GENERAL ASSEMBLY, Donostia-San Sebastian
•   22-26 SEPTEMBER 2025: EMO Fair, Hannover, Germany
•   29-31 OCTOBER 2025: 24TH ADVANCED MANUFACTURING AND MACHINE-TOOL CONFERENCE, Donostia - San Sebastian