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8/10/2016 | 1 MINUTE READ

German Machine Tool Industry Reports Increased Order Bookings

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VDW attributes this boost to domestic business and international automotive projects.

Order bookings in the German machine tool industry rose by 16 percent in the second quarter of 2016 compared to the preceding year’s equivalent period, according to VDW, the German Machine Tool Builders’ Association. Domestic orders are up by 19 percent, while demand from abroad has increased by 14 percent. Eurozone orders are up by 37 percent, and non-Eurozone nations grew by 10 percent in orders. In the year’s first half, order bookings increased by 12 percent compared to the preceding year’s figures. Domestic order bookings rose by 10 percent, and orders from abroad are also up by 13 percent.

According to VDW, the higher level of demand is thanks to domestic business and automotive projects in China and Mexico. One-off effects from the first half of 2016 are also responsible for the growth in orders, according to VDW. Abroad, machining centers and milling machines are said to be benefitting from large-scale orders. Other metalcutting technologies, as well as areas of forming technology, are performing less well in terms of orders from abroad. However, domestically, metalcutting is up by 2 percent, and VDW predicts that other technologies will benefit from this rise.

Additionally, the industry reports that employment remains at a high level. In May 2016, almost 69,000 people were employed in the machine tool industry in Germany—a slight increase over the preceding year. This is an indication that German machine tool manufacturers, despite cyclical fluctuations, are keeping themselves fit to face the challenges of the future, suggests VDW.

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