Mechanical Engineering Industry - Increasing Demand for Machines from Germany
The German Mechanical Engineering Industry is the second largest industry in the country and employs more people than any other industrial sector. About 6,000 companies and 914,000 employees ensure the industry's leadership in exports. Even though the industry had to cope recently with a strong Euro, production rose by 10.8 percent in 2007. With this exchange rate challenge, some companies have started to build plants in the dollar region in order to supply the German production with components. ''Euro is beating'', said the German Engineering Federation's (VDMA) expert Olaf Wortmann at the beginning of June 2008.
Nevertheless, in April orders went up by 35 percent compared to last year. According to the VDMA, many companies have to work hard to comply with these orders. Although the demand for German machines is still strong, the industry's annual growth is expected to decline this year to 5 percent in comparison to the 11 percent of 2007. This slow down is caused by the shortage of skilled workers and engineers and by the weak U.S. market.
In 2007, the amount of exports and imports of machines and components grew in Germany. A VDMA survey reports a nominal growth of 13.6 percent, of which Chinese and Japanese companies had a large share. Imports totaled almost 50 billion Euros in 2007.74.1 percent came from other European countries.
Technical fields with high import rates are drive technology (10.5 percent of all machine imports), air technology (9.5 percent) and construction technology (8.6 percent).
German machine builders carry out large scale investments in innovation. These innovation charges summed up to 10.7 billion Euros in 2006. The ratio between the company's turnover and innovation charges was at 5.4 percent that year and is expected to stay robust.
By its own account, the VDMA network represents 3,000 small and medium sized member companies in the engineering industry. Its surveys cover the entire process chain - everything from components and plant manufacturers, system suppliers and system integrators through to service providers. Its members approach the association with questions on foreign business and exports, law, taxes and wages, marketing and customer service as well as research and technical codes.
The VDMA operates its website in German, English and Chinese and offers many publications and a membership list as well as a product database and survey results. It also provides both network support and advisory reports written by a staff of analysts and experts. A useful communication tool offered is the electronic black board that is accessible for non-members, both for reading and publishing.The VDMA comprises many networks for special interest groups among the engineering industry. One of them is the German Machine Tool Builders Association VDW wich offers similar services to its members as the VDMA and additionally operates a contact form for sales agents who are looking for new products. Contact details are forwarded to the relevant VDW members.
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