"The boom is gradually coming to an end and demand is normalizing," Schäfer continued. VDW attributed this development to a slowing global economy, in particular slower growth in demand outside the Euro zone.
“On the other hand, the strong domestic demand in the second half of 2017,” according to Schäfer, who offered the strong volume of new orders concurrent with EMO Hannover, in September 2017, which now reflected responsible for a decline in current year-over-year order levels.
“And finally, global developments – including the spread of trade conflicts, increasing protectionism, rising oil prices, high inflation in various emerging markets, unchecked debt, etc., are unsettling customers, especially small and medium-sized enterprises,” Schäfer said.
For comparison, U.S. machine-tool new orders through September are 27% higher than the comparable January-September total for 2017.
In terms of machine tool production, VDW reported that January-September 2018 sales for German machine tools are up 13% year-over-year. However “it will not be possible to sustain this double-digit growth over the year because production skyrocketed at the end of 2017," Schäfer forecast. Even so, growth in sales prompted the association to raise its production outlook by 1%, up to 8% or €17 billion year-over-year for 2018.
