Global Machine Tool Business Set to Gather Momentum in the EMO Year

As the world’s premier trade fair for the metalworking sector, EMO Hannover is the most important indicator for technical trends and innovations in the field of production technology. And it thus also boosts investments in machine tools, production solutions and production-related services. Under the motto of “Connecting systems for intelligent production”, the EMO’s organiser, the VDW (German Machine Tool Builders’ Association), Frankfurt am Main, Germany, will be focusing on digitisation and networking for exhibitors and visitors.

“Experts expect networking to trigger a quantum leap forward in terms of improving productivity and competitiveness among users in all sectors,” reports Christoph Miller, Trade Fair Director at the VDW, speaking at the EMO’s press conference in Nairobi on 1 March 2017. This could also trigger an upturn in capital investment, says Christoph Miller.

International machine tool consumption fell in 2016

Adversely affected by numerous international crises, however, the global economy is currently in a relatively cautious phase. This applies to GDP, industrial production output, capital investment in the major user sectors for machine tools, and thus international machine tool consumption as well. According to the VDW’s relevant statistics, the global market in 2015 totalled 69.5 billion euros. For 2016, the VDW is predicting a fall of more than 2 per cent. The market in Europe stands out as the best performer, driven primarily by the Southern Europeans, Turkey, Spain and Italy. The UK’s industrial sector was in 2016 severely affected by Brexit. Machine tool consumption is predicted to fall by 14 per cent on a euro basis.

Russia’s industrial sector, too, is still a long way away from a meaningful recovery. Here, once again, a decrease in machine tool consumption is predicted, this time by one-fifth. Asia is likewise downsizing its consumption. Only Japan and India are showing a plus. Bringing up the rear in 2016 were the Americas. This is primarily attributable to what continues to be a very difficult situation in Brazil, which cannot be offset even by the good performance of Mexico.

The EMO year of 2017 will see improved macro-economic situational conditions

For the EMO year of 2017, economic pundits are anticipating an improved situation, with investments rising by 1.5 per cent and machine tool consumption by 2.1 per cent. Europe is expected to top the rankings again, with an increase of 4.1 per cent. The principal drivers continue to be the southern European nations Italy and Spain but France as well, all three of them major machine tool markets in Europe. Some markets of Eastern Europe, too, are boosting this trend. Asia and America can achieve only an underproportional rise in their machine tool consumption during 2017, of 1.7 and 0.9 per cent respectively, but will at least be turning a minus into a plus.

Plenty of catching up to do for modernising Kenya’s economy

Kenya’s economy is growing at an annual rate of between 5 and 6 per cent, investments by between 7 and 9 per cent. The driving force here is the government, which is prioritising large infrastructural projects. Private investments are falling. While the entire East African region is being plagued with crises, Kenya exhibits welcome stability in terms of the major economic indicators. This is primarily attributable to its diversified economy, its low dependence on oil or mineral exports, a growing and increasingly productive agricultural sector, infrastructural investments, and an expanding financial and insurance sector.

This means the country is well placed for improved development, but also has plenty of catching up to accomplish, given a population of whom half are living below the poverty line. Economic pundits are therefore urging further structural reforms and rigorous measures to fight corruption, insufficient access to credit, criminality, inadequate infrastructure, high official taxes and an inefficient bureaucracy. In some sectors, like machinery and plant manufacturing, chemicals, the construction industry, communications, environmental engineering, medical technology, infrastructure and mining, substantial investments are being made.

The industrial sector contributes just under a fifth of Kenya’s total economic result. In terms of machinery and plant construction, and of machine tool manufacturing, Kenya is totally dependent on imports. In 2015, machine tools worth 24 million euros were imported. Most of them come from China, India, Italy, Taiwan and Switzerland. Germany, with a share of 6 per cent, ranks 7^th. German machines are much in demand when it comes to high-tech or specialised solutions. They enjoy a very good reputation.

And to enable the machines concerned to be lastingly utilised, service support and maintenance have to be assured. Which is why Germany’s machinery and plant manufacturers have launched a training project in Kenya, designed to provide advanced skilling for existing technical specialists. In the medium term, the two-to-four-week courses are to be complemented by vocational training to qualify staff as mechatronics technicians.

“Visitors to the EMO will also learn what requirements are nowadays posed for specialist technicians and in particular new recruits,” explains Christoph Miller of the VDW. At the stand housing the Special Show for Young People, there will be demonstrations of what a modern-day training course in the metalworking sector looks like.

“Representatives of Kenya’s industrial sector, moreover, need comprehensive information on new solutions for their production operations,” adds Christoph Miller of the VDW. Exhibitors at the EMO Hannover 2017 will include representatives from all important vendor nations for Kenyan producers. Machine tool manufacturers from more than 42 different countries will there be spotlighting their production technology, ranging from simple, sturdy and affordable to high-priced high-tech. Both stand-alone machines and concatenated systems will be on show, plus transfer lines and large machines, featuring a high degree of automation.

“There will be plenty to see at the EMO Hannover on the topics of Industry 4.0 and automation in particular,” says Christoph Miller. “The EMO Hannover is the ideal platform not only for big investors,” is his explicit message to Kenyan trade visitors. “We are especially keen, too, to encourage mid-tier users of machine tools to find out in detail what the world of metalworking has to offer.”

EMO Hannover 2017 – the world’s premier trade fair for the metalworking sector

From 18 to 23 September 2017, international manufacturers of production technology will be spotlighting “Connecting systems for intelligent production” at the EMO Hannover 2017. The world’s premier trade fair for the metalworking industry will be showcasing the entire bandwidth of today’s most sophisticated metalworking technology, which is the heart of every industrial production process. The fair will be presenting the latest machines, plus efficient technical solutions, product-supportive services, sustainability in the production process, and much, much more. The principal focus of the EMO Hannover is on metal-cutting and forming machine tools, production systems, high-precision tools, automated material flows, computer technology, industrial electronics and accessories. The trade visitors to the EMO come from all major sectors of industry, such as machinery and plant manufacturers, the automotive industry and its component suppliers, the aerospace sector, precision mechanics and optics, shipbuilding, medical technology, tool and die manufacture, steel and lightweight construction. The EMO Hannover is the world’s most important international meeting point for production technology specialists from all over the planet. In 2013, the fair attracted more than 2,130 exhibitors, and around 143,000 trade visitors from more than 100 different countries. EMO is a registered trademark of the European Association of the Machine Tool Industries CECIMO.

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