In the second quarter of 2011, order bookings in the German machine tool industry rose by 83%. Domestic order bookings increased by 72%, export orders by 88%. Overall, demand more than doubled during the first six months of 2011, 103% up on the preceding year’s figure. Domestic customers ordered 96% more than in the previous year’s equivalent period, and foreign customers 107% more. The order volume was even 8% above the figure in the reference period of the record year achieved in 2008.
“The continuingly buoyant level of demand has ensured a magnificent mid-year result”, confirms Gerhard Hein, Head of Economics and Statistics in the VDW (German Machine Tool Builders’ Association), Frankfurt am Main. The growth rates, he added, are referenced to an already strengthened baseline from the preceding year.
The sustained boom in order bookings is also ensuring a high level of capacity utilisation, which most recently in July of this year was at 94.7% in comparison to 76.3%a year ago. The order backlog, at 9.7 months, is at its highest for several years. At some manufacturers of customised machinery, who are receiving massive orders from the very vigorously expanding au-tomotive industry, it is even higher. “Faster deliveries are being hampered by restrictive procurement options for the components”, explains Hein.
The machine tool industry remains cautious when it comes to capacity upsiz-ing, not least in view of the resurgent uncertainty generated by current financ-ing problems in Europe and the USA. “The shock from 2008/2009 is still deeply ingrained”, says Hein. On the other hand, he continues, companies also adopted a wait-and-see approach to payroll downsizing during the crisis. In May of this year, there were 65,560 people working in the German machine tool industry. Since the beginning of this year, almost 3% additional per-sonnel have been hired, corresponding to around 1,800 people.
For the year’s second half, Hein expects demand to be boosted by the EMO Hannover 2011. The world’s premier trade fair for the metalworking sector will be held from 19 to 24 September. However, the growth rates in order bookings, he adds, will become significantly smaller, because an exceptionally high level of demand has already been reached. The increase in sales of 30% anticipated for 2011 is assured, though. During the year’s first half, sales rose by 50%.