POSITIVE ECONOMIC PICTURE FOR EUROPEAN MACHINE TOOL PRODUCERS DESPITE POLITICAL AND ECONOMIC UNCERTAINTIES

The CECIMO Spring Meetings 2023, held in Antalya, took a deep dive into the future agenda of the Association and looked at the emerging technologies and mega trends in manufacturing industries. Despite political and economic system uncertainties, CECIMO announces a positive economic picture for European Machine Tool producers.

Economic situation and outlook

With easing supply-side pressures and strong order books, CECIMO expects positive output growth this year. The reduced risk of gas shortages and easing inflationary pressures are expected to have a positive impact on consumer and business confidence in Europe. However, it is important to recognize the negative impact of geopolitical tensions and rising interest rates on investment flows and global demand.

Looking back on the previous year, the European MT industry experienced significant recovery despite all the challenges. Strong order momentum was maintained throughout the year, with capacity utilization levels above the 2019 average. According to the latest figures, CECIMO's MT production reached around €25 billion in 2022, maintaining a share of around 32% of the global MT production. On the consumption side, with a value of around €18.4 billion in 2022, the CECIMO countries accounted for almost a quarter of the world's MT consumption. These numbers reflect an increase in MT production of around 11.9% and MT consumption of 23.4% compared to the 2021 values.

CECIMO's total MT exports increased by around 11.7% in 2022, while imports improved at a much higher rate - by around 28.8%. The USA and China remained the two main export destinations for European MT producers in 2022, with the USA in the first place. Japan, China, and Taiwan remained the top three MT supplying markets for the CECIMO countries.

Despite challenges, during the GA sessions, the Chairman of the Economic Committee, Marcus Burton, announced the initial estimates of CECIMO Machine Tool production growth in 2023: ”Thanks to strong order backlogs and a further recovery in MT consumption, especially in Europe, we see further growth of CECIMO Machine Tool production by about 8% this year”.

While the CECIMO8 total orders index average for 2022 is around 11% higher than the 2021 average, the latest business climate indicators suggest a decline in orders in the first half of 2023. Later on, however, order intake is expected to show a more stable and positive trend.

Commenting on the announcement, Filip Geerts, CECIMO Director General, said: "We are pleased to see the recovery of the European MT industry in 2022, and we look forward to positive output growth in 2023. While there are challenges ahead, we believe that the industry is well-positioned to continue its growth trajectory in the years to come.”

Conference on the Future of Industry

The 2023 CECIMO Spring Meetings hosted the ‘’Future of Industry’’ conference which provided valuable insights into the challenges and opportunities that companies are currently experiencing and will face in the coming years. The event featured a keynote speech by Alphan Manas, Innovation and Entrepreneurship at TİM and İHKİB, who walked the audience through the advancements of technology over the last few decades: from the creation of the internet to the current technological innovations like quantum computing, virtual realities and fast developing artificial intelligence systems. His speech was an invitation to think about the future and how technology will impact our sector, but also our personal and professional lives.

The conference brought together different industry experts who shared their knowledge and experience on the latest technological developments, the state of manufacturing, trends in the machine tool industry trends, and asset-based financing.

In that respect, Marco Ghirardello, Senior Vice President, FANUC Europe GmbH, stated that "The last decade has seen companies operating under increasing level of disruption. Manufacturing can already evolve thanks to the technology; key is to adopt a changing mentality for a successful transformation." This highlights the need for companies to embrace change and adapt to the evolving landscape to remain competitive.

Steve Hope, New Business Development Manager – Europe, DLL Group, discussed 5 key trends in the machine tool sector, including e-mobility, additive manufacturing, sustainability and automation highlighting the importance of understanding the relationship between technology and financing in order to maximise the potential benefits of new developments.

Memiş Kütükcü, Chairman of the Board, OSBÜK, presented on how to build a more resilient supply chain, which is critical in today's fast-paced and constantly changing business environment.

The Conference on the Future of Industry provided a valuable opportunity for participants to gain insights into the future of work and industry, and to learn from industry experts on how to adapt to the evolving landscape. The event was a great success and demonstrated industry’s commitment to embrace change and innovation for a better future.