In the second quarter of 2022, order intake in the German machine tool industry rose by 24% compared to the same period last year. In this context, orders from Germany increased by 27% and those from abroad by 23%. In the first half of 2022, orders increased by 34% overall. Domestic orders contributed to this with a 35% increase and foreign orders with a 33% increase.
Dr Wilfried Schäfer, executive director of the
German Machine Tool Builders‘ Association (VDW), Frankfurt am Main, said: “Despite the current difficult conditions, machine tool orders continued to develop well in the second quarter — in relation to the first half of the year, volumes are at almost record levels since 2018. Foreign business is primarily supported by demand outside the European Union. In particular, our two lead markets China and the USA remain strong and the severe lockdown in Shanghai and other Chinese cities did not leave any deeper traces in the second quarter.”
He added: “In terms of technologies, cutting machinery is currently pulling up the overall result as demand in the first half of the year was twice as strong as that for forming technology. This is an indication that major projects in the automotive industry are currently on hold, especially in Germany.”
Forming technology accounts for around 30% of total machine tool sales and press technology in particular is used in major projects.
Sales continue to be a cause for concern. In the first half of the year, they were 7% higher than in the same period last year, which effectively means stagnation.
A total of 70% of German machine tool production goes into exports, which picked up again in the second quarter, an overall increase of 5% in the first six months. Exports to Asia grew the most strongly in a regional comparison at 11%. However, China, the largest market, made only a disproportionately small contribution, with a 5% increase. By contrast, Japan, India and some smaller markets in Southeast Asia took up German machine tools with double-digit growth rates.
Business with American customers also continues to do well, up 9%. Europe stagnated at the previous year's level, with exports to Eastern Europe in particular slumping sharply due largely to the Ukraine war. Exports to Western Europe, on the other hand, have picked up significantly. Imports rose by a total of 16%.
With no end in sight to the Ukraine War, Mr Schäfer said that uncertainties for economic development have increased further. In addition, the energy supply in the coming autumn/winter remains uncertain with corresponding consequences for prices.
In China, the largest market, there are signs of weak overall economic growth and there is also geopolitical dangers in dealings with Taiwan.
Mr Schäfer concluded: “At least on the plus side, there is still a high need for investment in climate change. The recently adopted investment program in the USA will also provide impetus for the industry.”