German machine tool demand continues to rise

The rise in demand for German machine tools continues apace. In the third quarter of 2007, orders increased by 31 per cent over against the same period last year. The largest contribution towards this performance was from domestic customers. The orders they placed rose by 42 per cent, while foreign orders increased by 23 per cent. In the first nine months of 2007, demand likewise rose by 31 per cent in comparison to the previous year, although there was a less dramatic gap between the two sources: domestic orders were 35 per cent greater and foreign orders 29 per cent. “The manufacturers of machine tools are largely working at full capacity,” said Gerhard Hein (pictured), director of economics and statistics, VDW (The German Machine Tool Builders’ Association). Bottlenecks in the supply of components and parts are adding significantly to the throughput times for machine tools. Waiting times of up to six months are being quoted for bearings, racks or castings, he added. This means there will be a considerable backlog of orders taken into the new business year. Last year, the German machine tool sector, with its workforce of some 65,000 supplied machines and services to a total value of €10.8 billion.