According to the German Machine Tool Manufacturers Association (VWD), in the third quarter of 2018, orders received by the German machine tool industry fell by 2% year-on-year, of which orders from Germany fell by 1%, while orders from Germany abroad. It dropped by 2%.
But so far, 2018 is still a record year for German machine tools. In the first nine months of this year, total machine tool orders in Germany increased by 7%, of which orders from domestic increased by 20%, while orders from foreign countries increased by 1%.
“Although we saw a slight decline in orders for the first time in more than a year, it also shows that prosperity is coming to an end and demand is normalizing,†said Dr. Wilfried Schäfer, Executive Chairman of the German Machine Tool Manufacturers Association (VDW).
Regarding the decline in orders faced in the third quarter, the association believes that the reasons are mainly from two aspects. On the one hand, the global economic growth is slowing down, and the growth of markets outside the Eurozone has stagnated; on the other hand, compared with the past, the demand for machine tools in Germany in the second half of 2017 is too strong, and now the normal order volume is higher than the previous year. It seems to be slightly insufficient. Of course, the current global situation, including the spread of trade conflicts, rising oil prices and inflation in various emerging markets, has also had a certain adverse impact on German machine tool orders.
In terms of sales of German machine tools, according to a survey by the German Machine Tool Manufacturers Association, overall, sales in the first nine months increased by 13%. Despite this, the association remains cautious about overall machine production in 2018. “Because production has soared at the end of 2017, it is impossible to maintain double-digit growth this year,†Dr. Wilfried Schäfer said. Therefore, VDW expects German machine tool production to increase by 8% in 2018, exceeding 17 billion euros.
In addition, it is worth mentioning that Japanese machine tools, which are favorable competitors for German machine tools, also experienced a decline in orders in October this year. According to Japanese media reports, Japanese machine tool orders fell for the first time in 23 months, mainly due to the lack of orders for China, and this decline has not yet seen signs of bottoming out.
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