VDMA - Verband Deutscher Maschinen- und Anlagenbau e.V.
Trends in the value of new orders for German machine tool manufacturers The blue lines indicate domestic German orders the gold lines indicate export orders The solid lines 20032012 depict longterm seasonally adjusted values the narrow lines 20112012 indicate actual values

Rising Year-End Orders for Germany’s Machine Tool Builders

Feb. 8, 2013
Q4 orders rose 3% EU demand offsets domestic results

German machine tool builders’ new orders rose 4% during December 2012, compared to the December 2011 result, paced by improvements in domestic demand (1%) as well as exports (4%). The results were released by VDMA, the German machine tool builders trade and policy association.

However, for the year as a whole (January to December 2012) VDMA concluded that growth averaged -3% versus the FY2011 results. Domestic orders dropped 8% versus 2011, while foreign orders “stagnated,” the group announced.

Still, the recent results from Germany presents a more positive view of global machine tool demand than a similar report from the Italian machine tool builders’ trade association. In the VDMA report, orders from the EU were particularly notable during December.

Moreover, during the final quarter of 2012 (October-December), VDMA recorded new orders increased 3% versus results from the last quarter of 2011. German domestic orders fell by 1% during Q4 (versus Q4 2011), and orders from abroad during that period rose 4%.

“In December the German engineering industry saw the order inflow returning to the positive growth rates of September and October,” VDMA chief economist Ralph Wiechers reported. “This time, it was mainly the demand from the Euro partner countries that boosted foreign orders.

“Domestic orders recorded rather poor results compared with the previous year,” Wiechers continued, “though, the order curve shows that domestic orders struggled vigorously to make up summer losses.

“Over the full fiscal year 2012 growth averaged at -3%, a respectable performance given the challenging economic conditions,” Wiechers concluded.

About the Author

Robert Brooks | Content Director

Robert Brooks has been a business-to-business reporter, writer, editor, and columnist for more than 20 years, specializing in the primary metal and basic manufacturing industries. His work has covered a wide range of topics, including process technology, resource development, material selection, product design, workforce development, and industrial market strategies, among others. Currently, he specializes in subjects related to metal component and product design, development, and manufacturing — including castings, forgings, machined parts, and fabrications.

Brooks is a graduate of Kenyon College (B.A. English, Political Science) and Emory University (M.A. English.)