Good news came out of Germany yesterday, with the VDW (German Machine Tool Builders Association) saying that it expects a modest increase in production output of 1% during 2013. This follows two years of substantial growth, says Martin Kapp, Chairman of the VDW. “This means the sector will be back to its previous high from 2008,” Kapp said in a press conference.
This is good news for the fluid power industry, as hydraulics are used extensively in machine tool operations, and good overall for the world economy. After the recession that rocked us from 2008 to 2010 or so, it's good to see more markets and industries recovering back to those high levels of 2008.
Last year, the German machine tool market grew 9%, with a production volume worth 14.1 billion euros. Exports performed even better: 9.5 billion euros — representing a rise of 20% — is the highest figure ever measured.
Asia, not surprisingly, China, was the largest purchaser of German machine tools, with the Chinese market having bought more than twice as many German machines as the second-largest market, the USA.
And though the numbers aren't as high for 2013, the VDW’s forecasting partner, Oxford Economics, is confident that industrial production output and fixed-asset investments will once again be showing a somewhat steeper increase worldwide. This applies primarily to Asia and America, less to Europe.
Read the entire press release here now.