Representatives from machine tool associations – whose manufacturers account for more than 80% of the global machine tool production, gathered at the world’s leading trade fair for production technology to demonstrate their resilience and strength in the face of a wide range of global challenges. Despite a stable outlook for 2023, projections for the global machine tool industry are tempered by various international and economic challenges. Building on the collective strength of the sector, collaboration, innovation and adaptability will remain key as the industry continues to navigate this evolving landscape.

“At a time of profound political and economic uncertainty, the promotion of international cooperation is imperative” underlined Dr Heinz Jürgen Prokop, CECIMO’s President, in his opening remarks at the CECIMO’s Press Conference at EMO Hannover 2023. The event united machine tool industry leaders from the United States, China, Japan and Europe.

Mr Marcus Burton, Chairman of CECIMO’s Economic Committee, highlighted CECIMO’s commitment not only to lobbying for favourable conditions for the sector, but also to fostering international cooperation with machine tool associations around the world. In that context, he also unveiled key insights from CECIMO’s recently published Global Machine Tool Report 2022, which could not have been produced without such cooperation. Based on the latest database update, Mr Burton highlighted that Global MT (machine tools) production reached a level of 79.2 billion EUR in 2022, reflecting an annual production increase of 11.9%. In the same year, MT production in the CECIMO countries recorded an increase in MT production of 12.8% and, with a level of 25.3 billion EUR, CECIMO maintained its share of 32% of global MT production. On the consumption side, CECIMO countries accounted for almost a quarter of global MT consumption, with a total value of around 18.7 billion EUR in 2022 (+25% compared to 2021).

During his presentation, Mr Burton, also revealed the latest estimates for 2023 for global and European MT production. While he highlighted that MT production in the CECIMO countries is expected to grow by around 5.5% to reach a level of almost 27 billion EUR in 2023, global MT production is expected to remain more stable, slightly below the 2022 level. In his concluding remarks, he pointed out that “In light of current developments, we have slightly downgraded our expectations. Nevertheless, we remain optimistic about the positive growth in European MT production in 2023 and our initial indications for 2024 are positive“. However, he also highlighted the significant challenges on the horizon, including the headwinds of slowing global economic growth, rising interest rates and geopolitical shifts resulting from the ongoing conflict in Ukraine. These factors collectively inject a notable degree of uncertainty into the short-term demand landscape for the machine tool industry.

In reference to the Chinese machine tools sector, Mr Mao Yufeng, President of China Machine Tool & Tool Builders’ Association (CMTBA), pointed out that “from January to July 2023, sales of metal cutting machines dropped by 4.3% to 10.76 billion USD compared to last year. On the other hand, sales of metal forming machines went up by 6.9% to 6.16 billion USD”. He also stated that 2023 has witnessed heightened endeavours in industrial restructuring and shifts within China’s machine tool consumer market. Among others, this includes a decline in overall automobile production, but a notable increase in the use of new energy vehicles. In addition to shifts in consumer markets, he highlighted several significant challenges that contribute to the uncertainty surrounding the outlook for the machine tool sector. These challenges include a fragile economic recovery, persistent inflation, financial market instability and increasing debt pressures.

In light of Japanese metal cutting MT sector, Mr Kazuo Yuhara, President of Japan’s Machine Tool Builders’ Association (JMTBA) highlights remarkable growth for the Japanese metal cutting machine tools sector in 2022. Total orders surged to a record-breaking 1,759.6 billion yen, increased by 14.2% from the previous year. Production of metal-cutting machine tools increased by 20.5% in 2022 over the previous year to 1,078.8 billion yen, with a strong growth trend in both exports and imports levels. Looking at the most recent period (January-July 2023), he noted the decline in order volumes for metal-cutting machine tools, but highlighted positive expectations for the impact on demand of investments in green, digital and resilience-related areas.

Looking at the American machine tools industry, Mr Douglas K. Woods, President of AMT – the Association for Manufacturing Technology in the USA, emphasised continued stable conditions for the American machine tools industry in 2023 and 2024, following a year of near average consumption, totalling 9.6 billion in 2022 USD. In 2023, the effects of the tightening of US monetary policy become apparent, leading to a slight decline in machine tool consumption, he added. However, indicators for 2024 suggest a recovery in machine tool production and imports, while exports stabilise, leading to an increase in consumption.

EMO Hannover officially opens its doors today after a four-year break. “Some 1,850 exhibitors from 42 countries will be showcasing their latest machines, solutions and services for industrial production at the world’s leading trade fair for production technology,” says Carl Martin Welcker, General Commissioner of EMO Hannover at the opening press conference. “EMO is the hub of the international industry for one week,” he continues. Trade visitors from 150 countries came to Hannover for the last event.

Focus on future of production technology

Under its banner of Innovate Manufacturing, the fair serves as a key platform for all aspects of manufacturing technology. The latest machines are presented here, and technical solutions, trends and innovations are discussed. EMO Hannover thus covers the entire production technology value chain, functioning itself as a kind of “smart factory”. With a strong focus on technology, dialog and networking, the fair will take a closer look at the following three megatopics: The Future of Business, The Future of Connectivity and The Future of Sustainability in Production. “The Future Insights show that production technology is not just of interest to manufacturing experts, but that it responds to the pressing problems of our time by developing new technical solutions,” says Welcker.

Extensive range of offerings at EMO Hannover

The trade fair presents the entire spectrum of production technology – from production systems and tools to measuring equipment, software and controls. The sheer variety reflects the current challenges facing industrial production, including efficiency enhancement, flexibility, quality improvement, automation, electromobility, energy efficiency and the circular economy.

EMO Hannover also offers a varied supporting program featuring around 360 individual events. The highlights include a high-profile panel discussion on the topic of Sustainable Production Value Chain – How is Industry Mastering the Future? with the CEOs of DMG Mori, Samson, Siemens and EMO General Commissioner Welcker. Then there are two half-days dedicated to New Digital Work – Opportunities or Disenfranchisement? This will address numerous aspects surrounding the world of work in the future in lectures, interviews and panel discussions. The development of future markets represents a further decisive factor in determining the future of the business. Taking India as an example, one conference will highlight the current opportunities and bring together interested international parties with Indian companies.

In addition, cooperation with innovative startups is playing an ever more important role at EMO. More than 60 young companies will be presenting their products in the Startup Area in Hall 9. The EMO Startup Night (including speeddating) allows exhibitors and visitors to get to know young companies and forge new contacts. The Special Training stand of the Youth Education and Development Foundation for Mechanical Engineering in Hall 8 will be showing how it is countering the shortage of skilled workers in the metalworking professions, supporting trainers and teachers in the use of modern training methods, and demonstrating the attractiveness of the metalworking professions to young people.

Electromobility driving investment in production technology

The overall economic situation of industry worldwide is decisive in determining the success of EMO Hannover. Despite the current slump in global demand, the machine tool industry is expecting to see healthy interest in its products from various customer sectors in the medium and long term. Advancing automation, increasing digitalization, electromobility, the development of critical infrastructure and investment in renewable energies are just some of the developments that offer great potential for manufacturing technology. For 2024, economic researchers are expecting the machine tool market to recover and post a 7 percent increase. “We benefit from our customers’ branching out into new fields because we supply the technology they need to develop there,” points out Welcker.

The machine tool industry is particularly affected by the shift within the automotive industry towards electric drives. Dr. Michael Wittler, Managing Director at FEV Consulting, Aachen, which analyzed the opportunities and potential of e-mobility at an early stage, forecasts considerable sales potential in this area in the coming years. “We expect to see sales of battery and fuel cell vehicles grow to 85 million by 2040, representing a 75 percent market share,” he says at the opening press conference. “Electric motors, power electronics, batteries and fuel cells in particular are becoming key components in this fast-growing industry. These are components that require investment in their manufacture,” Wittler points out. E-mobility is a highly promising means of driving growth in manufacturing technology, but one which also reduces environmental impacts, he says. Referring to the study results, Wittler expressly encourages companies to be early adopters in this field and to develop their own product portfolio accordingly in order to benefit from the diverse opportunities arising from this emerging sector. A considerable number of manufacturers are already addressing electromobility, which is why the EMO is also including it in its supporting program in a panel discussion entitled Perspectives on E-Mobility .

“The entire EMO community is looking forward to six exciting days which will include numerous inspiring discussions with trade visitors from all over the world,” concludes Welcker.