THE SHOW / THE MICROTECHNOLOGY INFORMATION PORTAL
17.09.2019
J - Entreprises de services
Picture: Marcus Burton, Chairman of CECIMO Economic Committee at the EMO Press conference.
Despite the looming geopolitical troubles, there are many opportunities for the machine tool industry to thrive.
With uncertainty being the only clear rule nowadays, the outlook for global markets might deter almost the most adventurous of manufacturers and exporters. However, a more balanced analysis of our economic environment shows us that, despite the looming geopolitical troubles, there are many foreign opportunities for the machine tool industry to thrive.
Dr. Roland Feichtl, President of CECIMO, stated in his opening words that "the MT market appears to be slowing down, due in part to the increasing difficulties in the international political scene”. Total orders for Q2 2019 have gone down 19% with respect to Q1 and around 24% if compared to the figures of Q2 2018. Moreover, industrial production in Europe seem to be facing a downward trend, while European manufacturers trust in the market is also decreasing. Economic factors are indeed behind this apparent change of cycle, but geopolitical issues also hold sway over this. One of these is well known, as it has been at the centre of the European political debate since June 2016: Brexit. Since 2018, British machine tool builders have been CECIMO’s seventh largest producer, contributing more than 500 million euros in goods (a share of 2,3%), as well as the seventh largest consumer, with 4,2% of overall CECIMO consumption (around 730 million euros). They are also CECIMO’s ninth largest exporter, providing more than 560 million euros to the total sales abroad. These numbers show that the UK is an economic cornerstone of our project. If bureaucracy and potential tariffs were introduced between European and British MT industries, the impact in the sector would be negative.
Whatever the outcome, the UK will remain a strong strategic member within CECIMO, and it will support the association’s efforts to ensure that trade will continue as smoothly as possible. Recent efforts by the European Union to guarantee free movement of industrial products between the Single Market and the United Kingdom, such as the regulation Union General Export Authorisation for the export of certain dual-use items from the Union to the United Kingdom, are pointing in the right direction, but, should the United Kingdom ultimately leave the European Union, a more stable solution would be a wide-ranging exit agreement.
Beyond trade, our members are demonstrating how the manufacturing businesses continuously improve their productivity by investing in advanced digital systems and highly innovative technologies, even when economic perspectives seem unclear. CECIMO urges the European Union to support the 4.0 industry with clear and concise policies and by counteracting technophobic discourses. Investing in new technologies is key to future success, even in a difficult economic period, and this edition of EMO Hannover 2019 shows it more than ever.
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Picture: Marcus Burton, Chairman of CECIMO Economic Committee at the EMO Press conference.