CECIMO PRESS RELEASE

20 December 2011, Brussels

The CECIMO General Assembly, held in November 2011 in Zurich, appointed Mr. Carl Martin Welcker as General Commissioner for EMO 2013, which will take place in Hannover. EMO is the world’s premier show for metal working technology and enjoys a long-established international reputation as the flagship event for the machine tool industry. VDW, the German Machine Tool Builders’ Association and member of CECIMO, will organize EMO 2013 from 16 to 21 September in Hannover, in partnership with Deutsche Messe.

Mr. Welcker, in his capacity of General Commissioner, will supervise the organization of EMO 2013 and will be driving the promotion of the event, which will include a series of press conferences in major world capitals during the next two years. The General Commissioner reports to the CECIMO General Assembly regarding the action plans for the organisation of EMO.

Confident about the success of the upcoming event in 2013, the General Commissioner stated: “Today machine tool business is definitely globalized. Demand for machine tools comes from all around the world, owed to the industrialization of developing countries. We need a global showcase for the globalized marketplace and EMO is perfectly equipped to match the expectations of an ever greatly diverse portfolio of exhibitors and visitors. EMO will be once again the meeting point for the world of machine tools in 2013”.

Mr. Welcker, born in 1960, is well known to the European Machine tool industry: He served as Chairman of the German Machine Tool Builders’ Association (VDW) from 2004 to 2010. As a board member of the German Engineering Federation (VDMA) since 2001, Vice President of the VDMA and member of the executive board of the Federation of German Industry (BDI), he is engaged in topics concerning the entire industry. And he has a lot of experience in association activities. Welcker has been a CECIMO delegate since 2005.

Welcker’s full-time profession is as president and CEO at Alfred H. Schütte GmbH & Co. KG in Cologne, Germany, which manufactures multi-spindle automatic lathes and 5-axis CNC grinding machines.

Filip Geerts, Director General of CECIMO, confirms that since the world economy has climbed out of the doldrums throughout 2010 and 2011, the world machine tool market has enjoyed significant growth. It was no surprise that EMO 2011 became one of the most successful shows in the history of EMO, measured in terms of net exhibition space and volume of orders booked during the show. EMO is the mirror of the global business environment, which testifies its leading position as the international showcase for the machine tool industry. The rate of international participation hit 60% for exhibitors and 36% for visitors in 2011. Manufacturers chose once again EMO to launch their latest innovations in advanced manufacturing equipment. EMO 2013 will build on the success of this year’s edition.

All CECIMO member associations fully support Mr. Welcker, as well as VDW and Deutsche Messe, in the organisation of EMO 2013. CECIMO encourages active participation of its member companies (and their clients) to ensure a successful show.

Carl Martin Welcker succeeds Dr. Detlev Elsinghorst, who was in charge of EMO Hannover since 2001.

For media enquiries: Filip Geerts, Director General
Tel: +32 2 502 70 90 / Email:  filip.geerts at cecimo.eu

24 November 2011, Brussels

Today, an industry support platform^[1] was launched at the occasion of a one day conference^[2] on market surveillance of machinery hosted by the European Commission. Aimed at market surveillance authorities and market operators, the platform is designed specifically for machinery (the ‘capital goods’ market) and consists in a resource database to assess compliance of machinery equipment with relevant EU regulatory requirements.

The platform is a joint initiative of 7 European trade associations^[3] from the machinery industry.  It reflects the industry’s commitment to play an active role in improving market surveillance for machinery. The idea is embedded in a manifesto^[4], signed during the conference, and which offers 10 key recommendations for effective market surveillance.

The conference’s focus on capital goods has highlighted a shortcoming in the Internal Market – often cited as complete – where all too often it is consumer goods that are given headlines.  The market surveillance system is seen as predominantly reactive rather than preventive, resulting in a significant number of non-compliant machines placed on the EU market.

Speakers from a variety of machinery sectors explained how a deficient market surveillance system has a negative impact on competition, environmental protection, innovation, jobs and, probably most importantly, on the health and safety of the workers using the machinery – an area in which industry and trade unions are clearly in step.

The conference also provided an opportunity to consider solutions to improve the situation. DG TAXUD showed the central role that customs authorities must play to prevent imports of non-compliant products. Furthermore, best practice examples were presented within both the EU and its close neighbours (EFTA), some involving active participation from the EU industry.

Industry has repeatedly stressed the importance of market surveillance. Although legally, it is up to the Member States to carry out market surveillance so as to make sure that products on the European market respect our rules and regulations, the machinery industry is committed to working with the authorities and to provide assistance, whether in the form of technical support (as provided by the platform) or, for instance, by alerting authorities on non-compliant machinery entering or circulating on the Internal Market. It is by working together that Member States, the EU and industry will achieve effective market surveillance and therefore both a high degree of safety and also a level playing field in the EU.

For media enquiries: Filip Geerts, Director General
Tel: +32 2 502 70 90 / Email:  filip.geerts at cecimo.eu

CECIMO PRESS RELEASE

17 November 2011, Brussels

Martin Kapp, President of CECIMO

The CECIMO Fall General Assembly which met on 12 November 2011 in Zurich elected Mr. Martin Kapp as new President of CECIMO for a period of two years. He has been entrusted the responsibility of leading the European Association which represents 33% of the world machine tool production.

Mr Kapp succeeds in this position to Mr Michael Hauser, CEO of Tornos A.S. and Chairman of the SWISSMEM’s Machine tools and Manufacturing Technology group. During his Presidency, Mr Hauser created a new image for CECIMO which reflects the innovative and enabling character of the machine tool industry. He explained to European authorities and citizens the strategic role the machine tool industry plays in boosting the competitiveness of the European economy, as well as the necessity of ensuring the development of Europe’s manufacturing base within its borders. He did a lot to stimulate innovation, to promote free trade and to uphold a global level playing field for the European manufacturers.

Mr. Kapp thanked Mr Hauser for his excellent work and confirmed his commitment to maintaining the momentum of progress seized within CECIMO.

Priorities of the new Presidency

After his election Martin Kapp stated: “We need to focus on how to boost the competitiveness of the European machine tool industry in facing the challenges of globalization, the fight against climate change, environmental protection, the importance of market surveillance and enforcement, the specific needs of SMEs and the lack of skilled technical labour force. We need to encourage a research and innovation strategy driven by the present and future needs of the market.”

His most important goal is to point out to European stakeholders the importance of machine tools for industrial production in Europe. Mr. Kapp says: “Manufacturing is the core of the economy, which creates real economic and societal value. The machine tool industry offers full potential to reboot our economy and to create new jobs. Europe still has world-competitive machine tool producers that build on a long-standing engineering expertise, unique performance and a highly skilled workforce. Now it is time to remobilize our strategic assets and resources to build the future European economy.”

Who is Martin Kapp?

Martin Kapp’s chief occupation is as Managing Partner of the Kapp Group, Coburg. He was born in 1951. After his studies in mechanical engineering at Stuttgart Technical University, he began his professional career in Switzerland, initially with the company Schäublin, and later with Maag. In 1980, he went to the United States for three years as manager of the service centre for American Pfauter in Chicago. As of 1984, he entered the family enterprise in Coburg, his first responsibility there being production. From 1988 onwards, he assumed overall responsibility for the entire Kapp Group.

Martin Kapp has a lot of experience in association activities. He is the Chairman of VDW, the German Machine Tool Manufacturers’ Association, since 2010. He is also active in the Executive Board of the German Engineering Federation (VDMA) as well as locally in the Coburg Chamber of Commerce and Industry and at the local university of applied sciences.

The Kapp Group provides technologies and systems for the fine machining of gears and profiles for the automotive, aerospace, construction and compressor industries. The Niles Werkzeugmaschinen GmbH, Berlin, a member company of the Kapp Group, serves a wide range of applications in the segments of wind energy, rail technology, ship building and mining. The Kapp Group has operations in six locations worldwide, employing a workforce of around 850 employees.

Mr. Kapp was member of the Board of CECIMO prior to his appointment as President of CECIMO. He will be assisted by Dr. Frank Brinken (CH), CEO of StarragHecker AG, Mr. Dag Jacobson (Sweden), CEO of SMT Swedturn AB and Mr. Alberto Tacchella (IT), Vice-President of IMT S.p.A. – Tacchella Macchine plant.

For media enquiries: Filip Geerts, Director General
Tel: +32 2 502 70 90 / Email:  filip.geerts at cecimo.eu

CECIMO PRESS RELEASE

Brussels, 16 November 2011

During the General Assembly that took place in Zurich on 12^th November 2011, CECIMO’s Economic Committee confirmed:

• The European machine tool industry confirms strong rebound in production in 2011, with 25% rise against 2010, up to 20.7 billion Euros
• Successful EMO Hannover 2011 proves the industry is in a robust condition
• Uncertainty in the financial markets might affect investments

Exceptionally strong growth in orders’ intake for the European machine tools observed in 2010 and throughout most of 2011 sets a strong foundation for the dynamics of CECIMO output. European machine tool builders will add 4.1 billion Euros of production compared to 2010. This translates into increase in output by a fourth, to 20.7 billion Euros.

The recovery in the European machine tool industry was triggered off by the strong demand in Asian markets. We are currently seeing the mature economies, including Europe, increasing demand on modern manufacturing solutions. Consequently, the growth in the European machine tool industry is becoming broad-based and more sustainable.

The sound condition of the machine tool industry and its customers was confirmed by the very successful EMO Hannover 2011. The exhibition took place from 19 to 24 September 2011. During the five day fair, orders valued at more than 4.5 billion Euros were placed, which is roughly 16% than in the record exhibition of 2007, before the financial crisis.

Yet the dire outlook of the financial sector is now overshadowing the very positive outcome from EMO, the world’s premier machine tool exhibition. The uncertainty in the financial markets is spreading to the industrial sectors and might influence the growth rates in 2012.

The current situation in the financial markets results in a real threat to the manufacturing sector. The banking sector affected by the new rules is limiting access to finance not only for machine tool industry, but also to the end-user sectors. Taking money out of the system will inevitably hurt the industry.

Globally we see a huge demand for increased performance, lower costs, higher precision and entirely new multi functional products in the markets. European machine tool builders have the capacity to respond to international customers’ demand and to tap into the growth potential in fast-growing markets outside Europe. This will be reflected by higher export revenues in Europe and further contribute to job creation in the machine tool industry and the component manufacturing supply chain.

Meanwhile the Free Trade Agreement between the EU and the Republic of Korea entered into force. The Agreement is strongly endorsed by CECIMO, as it will facilitate trade between the two partners. CECIMO looks forward to the successful conclusion of similar agreements with other countries, particularly with India.

For media enquiries: Filip Geerts, Director General,
Tel: +32 2 502 70 90 / Email:  filip.geerts at cecimo.eu

22 September, 2011

Europe gaining market share in world’s machine tool production CECIMO, the Association of the European Machine Tool Producers confirmed a strong upturn in this year’s output.
• The growth in Europe is forecast to be higher than that in the world
• Future trend is highly dependent on the soundness of public finances
• EMO Hannover 2011 confirmed Europe to be a leader in advanced manufacturing solutions

European machine tool industry expects to increase production in 2011 by 20% over 2010; up to 20 billion Euros. The growth is driven mostly by exports, which are forecast to grow by almost a quarter to 15,7 billion Euros. “Recovery in European manufacturing also drives up machine tool imports and consumption in Europe. The latter will increase this year by 2 billion Euros to 11,3 billion” Michael Hauser, CECIMO President summarizes.

Compared to the world, Europe remains not only the biggest machine tool producer in the world, but is also increasing its share. “Our preliminary estimations show that we will increase our share from 33,3% last year to 34,6% in 2012” Frank Brinken, Chairman of CECIMO Economic Committee estimates.

EMO was the perfect opportunity to exchange information about products and services but also about trends and market evolutions. What are the mega-issues? What are the most promising market-segments and geographical areas?

CECIMO, the owner of EMO organized international meetings for technical managers about energy-efficiency amongst other topics. The outcome of those discussions is that sustainability is high on the agenda of customers and public authorities. CECIMO meetings for general management about the world economic situation and forecasts for the sector concluded that order intake is still on the rise. Despite the fact the new bookings in the second quarter this year levelled off, there will be a clearly strong boost from EMO.

The results for the next quarters are uncertain. European machine tool business, which is recovering from the crisis is now confronted with another wave of uncertainty and deteriorating confidence in the markets. “There are clouds over the European and World economy. In Europe they are reflected in hampered access to finance across the manufacturing supply chain. If the problems are not solved quickly in an appropriate manner, the situation can have severe impact on the machine tool industry in Europe. We are predominantly small and medium sized companies thus we would be particularly affected if the negative scenario materializes”, Frank Brinken stressed.

Nevertheless European machine tool industry has very strong foundations. During EMO we saw many European manufacturers showing their newest, innovative and unique machines. “Innovation paves the way for the further growth in the European machine tool industry, it is our lifeblood”, Frank Brinken highlights. “We need to ensure in Europe the efficient framework for research and innovation with the special focus on small and medium enterprises. This is the only way to ensure Europe’s success amid growing competition”, Frank Brinken underlined.

An open discussion organised by CECIMO, around key factors for the future sustainability and competitiveness of the European machine tool industry such as skills, innovation, market surveillance and free trade agreements, took place at EMO with the participation of key representatives of the industry and EU officials. The meeting has contributed to improving the knowledge of the European decision and opinion makers about the machine tool industry.

For media enquiries: Filip Geerts, Director General,
Tel: +32 2 502 70 90 / Email:  filip.geerts at cecimo.eu

19 September, 2011

CECIMO publishes ‘Guidelines for CE Marking’

CECIMO has published ‘Guidelines for CE Marking for metalworking band sawing machines’. This is the first publication in a series of guidelines aimed at supporting market surveillance authorities, customs authorities and economic operators to assess the conformity of machines against EU regulations.  “The initiative comes from industry itself.   We aim to contribute to ensuring safer workplaces and a level playing field for manufacturers in the Single Market” affirms, Mr. Dag Jacobson, Chairman of CECIMO’s Technical Committee.

Boosting the credibility and efficiency of the Single Market through fair competition

Metalworking machine tools which are used in manufacturing facilities in diverse sectors all over Europe are subject to tight regulations set at European level to ensure the safety of operators in the workplace and a high level of protection for their health. Moreover, regulation activity at European level has recently accelerated with the objective of keeping the impact of industrial production on the environment to a minimum. The Community free circulation legislation, which sets pre-market requirements for industrial machinery, stipulates that only machines which fulfil these minimum essential requirements can be placed on the Single Market.

Post-market control, in the form of market surveillance, is therefore important to ensure the effective enforcement of Community legislation. Effective and uniform enforcement of regulations across the EU guarantees the credibility and efficiency of the Single Market. European machine tool builders invest a good amount of their money and time every year to ensure the conformity of their machines with EU regulations.  Therefore, they plead for a level playing field which encourages competition centred around high level of health and safety standards, as opposed to a race to the bottom at the expense of these standards. Effective market surveillance is key to provide the right setting for fair competition.

Nevertheless, whilst market surveillance in the Single Market has largely concentrated on consumer goods and consumer protection up to present, capital goods have been out of the focus. The New Legislative Framework (NLF)[1], effective as of January 2010, aims at setting an enhanced framework for market surveillance, both for consumer and capital goods, by boosting resources dedicated to market surveillance in member states and by improving administrative cooperation. This is a significant step forward from the current situation; however, implementation has proved to be slow so far. CECIMO calls on the Member states to take the implementation of NLF seriously. Fair competition in the Single Market encourages innovation and competitiveness, two key objectives enshrined in the Europe 2020 Strategy to boost economic growth.

The machine tool industry’s commitment to workplace safety and environmental protection

“We believe that industry can also play a role in supporting the process towards enhanced enforcement and application of Internal Market legislation, which has kick-started with the entry into force of the New Legislative Framework. And, CECIMO is now taking up the responsibility. Effective market surveillance requires close cooperation between market surveillance and customs authorities and industry, as much as it requires enhanced administrative capacity.  Therefore, we have decided to share our expertise with the relevant stakeholders by publishing CECIMO Guidelines for CE Marking”, states Mr. Jacobson.

CECIMO expects these guidelines to increase awareness among public and private stakeholders about the essential requirements related to health, safety and the environment which apply to machine tools and CE conformity marking. This is expected to encourage manufacturers in and outside of Europe to conform to EU legislations. Safety and environmental performance are among top principles which European manufacturers abide by. CECIMO promotes the use of modern efficient machine tools which ensure high safety and environmental compatibility levels in accordance with Europe-wide harmonized standards.

Who will use CECIMO CE Marking Guidelines and how?

The guides are intended not only to inform stakeholders about essential requirements, but  they are designed essentially to provide practical instructions which allow a preliminary conformity assessment to be made. CECIMO guides provide a quick check-list to help verify if the machine under consideration conforms with Community provisions in accordance with rules for the affixing and use of the CE conformity marking.

Stakeholders from different spheres will benefit from these guides in various ways. Market surveillance and customs authorities can refer to CECIMO guides during their checks, whereas users of machine tools can use the guides to support their purchasing decisions. Furthermore, importers and distributors will be able to check the conformity of the goods they trade in the Single Market. Finally, manufacturers of machine tools will be provided with equal access to information on CE marking.

The third edition of the international Tampere Manufacturing Summit was organized on 23-25 May 2011 in Tampere, Finland. This year, the theme of the summit was «Lean and Sustainable». CECIMO Director General Filip Geerts explains his views on the current situation and trends in the European machine tool industry in an interview.

The 19th edition of EMO, the world’s premier trade fair for metal-working technology, will take place in Hannover on 19-24 September this year. EMO is the meeting point for the entire international manufacturing industry and the global-showcase for innovation in manufacturing technology equipment and solutions.

EMO is the common initiative of European machine tool builders dating back to 1950. The first European Machine Tools Exhibitions was launched in 1951 and shortly after became the world’s biggest venue of that kind. The first EMO, as a fair open to international exhibitors, took place in Paris in 1975 and has been increasing its worldwide significance ever since. The international recognition and importance of EMO attributes to the traditionally dominant role of Europe in the machine tool world. Moreover, as developing countries have emerged as significant producers and consumers of machine tools, EMO has evolved into a global forum and a meeting point for the entire international industry.

Users of machine tools from the entire spectrum including automotive, aerospace, energy generation, railway vehicles, ship-building, construction, tool and mould making, medical technology and others flock to EMO every two years to catch-up with the latest innovations in the machine tool industry. Machine tools, as provider of key enabling manufacturing technology and solutions to user industries, are the main driver of productivity and efficiency gains in user sectors.

EMO is owned by CECIMO, the representative body and the voice of European machine tool builders from fifteen countries which cover 97% of machine tool production in Europe and more than one third worldwide. “This collective ownership of the show is a major strength as it testifies that EMO is industry-driven; views of machine tool builders across Europe are taken on board in the design of the event; and all preparations are subject to industrial feedback prior to and after the show to best meet expectations of customers. CECIMO maintains close co-operation with machine tool associations and organizations all over the world to take also into account the wishes of machine tool builders and customers in all the regions of the world. Furthermore, the promotion of the show is entrusted to the CECIMO network, which provides a broad reach to key customer sectors across Europe and beyond.” states Michael Hauser, President of CECIMO.

Testimonials from various CECIMO companies and member associations best reflect views on EMO and prospects of the market for the upcoming show in Hannover:

Frank Brinken, CEO
StarragHeckert Group, Switzerland

“The current economic upturn which is on track in Europe and in the rest of the world is reflected in the European machine tool sector as a sharp increase in order intake and production. CECIMO forecasts total European machine total shipments this year at more than one-fifth higher than last year. Positive prospects of the market point out a vibrant, dynamic and fruitful EMO is on the way.”

Vincent Schramm, Director General
French Association for Manufacturing Technologies (CECIMO member association)

“The CECIMO network guarantees that EMO reflects wishes of all European machine tool builders which ensures expectations of potential customers are met. Thanks to CECIMO, EMO is organized by the sector itself and is really industry driven, taking into account users’ needs and market trends”.

Jarmo Hyvönen, President
Fastems OY AB, Finland

“EMO is the global showcase for innovations in the machine tool industry. This means that manufacturers prefer to launch their new products at EMO, which gives their innovations a high visibility to top-level international customers who come to visit the show. I believe that with the increasing weight of global markets for the machine tool business today, EMO provides exhibitors with a unique gateway to the international marketplace.”

Xabier Ortueta, Director General
AFM-Machine Tool Manufacturers´ Association of Spain (CECIMO member association)

“National associations assume an important role in the organization and promotion of EMO. Our member companies are the manufacturing technologies suppliers for the most relevant industrial sectors in the world economy, and EMO is the meeting point for all of them. Not only the Machine Tool industry, but industry in general, as the receptor of our productive solutions is widely benefited by attending EMO.”

Jan Rýdl, Member of the Board of Directors
TOS VARNSDORF a.s., Czech Republic

“EMO is the world’s most important machine tool exhibition and every significant market player is there. Decision-makers in production technology use EMO Hannover as a reference point. Investment decisions are made there. EMO provides, as such, clear opportunities to be seized. Of course it is a question of whether you seize them or not, but if you are absent you simply miss the opportunity.”

Ezio Colombo, President
FICEP, Italy

“EMO offers the most comprehensive picture of innovations in the entire world of metal-working as metal cutting, metal forming, tooling, manufacturing and process automation and metrology segments are present in the show. EMO proposes the qualitatively highest synthesis of the solutions set up by the worldwide machine tool industry.”

Machine tool production in Europe on the rise

The CECIMO Spring General Assembly, which took place on 6 – 7 June 2011, was inaugurated with a video message from José Manuel Barroso, President of the European Commission. President Barroso stated that the machine tool industry is a key enabling sector and has a crucial role to play in enabling the manufacturing industry in Europe to restore new sustainable economic growth. He underlined that the EU’s international negotiations are poised to open up new emerging markets for a major exporting sector such as machine tools.

• The European machine tool industry – the engine for all manufacturing activities – is expected to increase production by 22% against 2010 to 20.2 bn €
• Bookings in 2011 on the rise following 66% increase in 2010
• Trade surplus in 2011 to touch 9 bn €, 25% growth from the all-time-high recorded in 2010
• Resolute trade policy required to safeguard Europe’s position on the international markets

Following the strong inflow of new orders throughout 2010, this year CECIMO will enjoy a significant 22% growth in shipments to 20 bn €. This will be the strongest rebound in CECIMO sales for many years. Nevertheless this excellent result will still be about one fifth lower that in the record year of 2008.

Strong exports along with still fragile market conditions in Europe drove CECIMO trade surplus to a record level of 7.1 bn €. Exports-driven growth in 2011 is expected to bring about another record. We forecast the surplus to reach almost 9 bn € this year.

The clear recovery in machine tool production which we have experienced in Europe is mostly attributed to the foreign orders inflow, and more precisely, from continental Asia, Frank Brinken, Chairman of CECIMO’s Economic Committee explains. – We are trying to tap Asian growth, though we are facing fierce competition from the local and partially state-backed companies in these markets.

CECIMO welcomes the European Union’s agenda for trade and growth. It provides a thorough foundation for growth in Europe. We urge, though, to focus the implementation of the plan purely on the business issues. – Asian countries intensified economic ties with each other signing free trade agreements. Europe is at a disadvantaged position, not only because of the geographic and cultural distance to growing markets, but also because of a lack of any trade facilitating measures, Michael Hauser, President of CECIMO stressed.

CECIMO calls for international free trade based on a level playing field for all market participants. Europe has an open economy based on fair competition providing the best available condition for private, healthy and innovative companies. CECIMO, the world’s biggest machine tool producer, proves this with its financial results. “Europe needs to safeguard competition by applying the same rules to everyone. Only then can we all move forward according to our real strengths”, Michael Hauser commented.

EMO, the world’s premier fair in metalworking technologies, was on the agenda of the CECIMO General Assembly. The latest figures presented at the meeting have revealed that the net space that has been booked so far has reached 171,128 square metres. Up to the present, 1,929 companies from 37 countries have registered to the exhibition. In the face of extremely positive prospects for the industry, the upcoming edition of EMO is well on its way to reaching a success rate comparable to pre-crisis levels.

CECIMO expects a double-digit growth in production in 2011; Europe’s Machine Tool Market enters into robust sustainable growth phase

The recent decline in machine tool production in Europe hit bottom in 2010.  Strong growth in order intake indicates that the industry will continue its strong recovery over the current year, 2011.

In 2010, CECIMO production output reached 16.6 bn € which is about 1% lower than in 2009. External sales continued to be the driver; almost three quarters of the last year’s production was exported. Overall, CECIMO exports remained stable in 2010 at 12.3 bn €, which is a testimony to Europe’s leading technology position for the manufacturing sector and a cornerstone for successful economic development.

The apparent consumption of machine tools within Europe continued to decline for the second year. The size of the European market contracted last year by another 6% against 2009 to 9.8 bn €. Imports declined by 7% to 5.4 bn €.

“2010 clearly saw the rock-bottom of the decline in machine tool production, following the record high of 2008. 2011 will bring a double digit growth in the European Machine Tool production”’, Frank Brinken, Chairman of CECIMO’s Economic Committee predicts.  “Although we have been experiencing very strong growth in bookings over the previous three quarters, we are still a few years away from the production peak of 2008, before the bubble burst. It will take some time before this is reflected in the production numbers”, he adds.

The European machine tool industry needs more access to growing markets

“Europe’s machine tool production in 2010 amounts to one third of the world’s output, while a year earlier CECIMO members accounted for 43%. This clearly and strongly demonstrates the dynamic development in the Asian markets”, Frank Brinken, Chairman of CECIMO’s Economic Committee stressed.

Europe’s lower market share in the Machine Tool market becomes apparent in the total export figures. For the first time, Europe’s share in the world’s exports dropped below 50% compared with 62% in 2009.

The major winners are manufacturers from highly developed Asian countries experiencing extremely sluggish domestic markets for the third year in a row. As a consequence, European builders saw their Asian counterparts aggressively buying market shares overseas by lowering prices abroad despite their currency exchange rates going in the opposite direction.

“The global machine tool market is poised to grow and may reach a new peak in 2013, but the main growth is outside Europe, mainly in China and continental Asia. This brings a humongous challenge, not only for our industry, but also for Europe as a whole.  We need to secure our share in this growth”, Frank Brinken stressed.

“Our Asian competitors are not only massively increasing export sales at the expense of their profitability, but they are also enjoying low refinancing costs. This suggests a broad-based government endorsed approach towards securing market share in the surging regional markets. Europe absolutely needs to act before it is too late.”, Frank Brinken urged.

CECIMO calls on the EU to sharpen the focus of its market access strategy on opening up markets in Asia and to fight, on all fronts, the anti-competitive practices which harm European exports. European machine tool builders need a global playing field and a rules-based international trade system to fully tap growth in external markets and to recover their lost market share.