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 7th. 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.
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