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Global machine tool business set to gather momentum in the EMO year
The EMO Hannover 2017 is a good information platform for capital investment decisions amongMalaysian industrial customers
Kuala Lumpur, 19 January 2017.–The next EMO Hannover will be held from 18 to 23 September 2017. As the world’s premier trade fair for the metalworking sector, it’s 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 Kuala Lumpur on 19 January 2017. This could also trigger an upturn in capital investment, says Christoph Miller.
International machine tool consumption to pick up again in 2017
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 68.3 billion euros. For 2016, the British research institute Oxford Economics, the VDW’s forecasting partner, is predicting a fall of 1.7 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 being severely affected by Brexit. Machine tool consumption is predicted to fall by almost a third. Russia’s industrial sector, too, is still a long way awayfrom 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.
Malaysia’s industrial sector has high hopes of 2017
Malaysia’s economic growth slowed down in 2016.Reasons include weakness of investment worldwide, and the low energy prices on the global market. This has also proved disadvantageous for the Malaysian government, whose revenues from oil exports have fallen substantially, thus reducing the scope for public capital investment. Private investors are likewise in a cautious mood, since business expectations are subdued.It is only capital expenditure channelled intoelectrical engineering, electronics and transportationthat continues to hold up well.
Malaysia’s machine tool consumption totalled 430 million euros in 2015. All of the requisite production technology was imported. Almost a third was exported again. The most important suppliers of production technology for Malaysia’s industrial sector are Japan, with a share of 25 per cent, China and Taiwan. Germany, with a share of sixper cent, ranks 5th, together with South Korea.
In 2015, Germany supplied machines worth 33.3million euros, an increase of 38 per cent. The exports primarily comprised lasers, presses, plus parts and accessories. Inthe first three quarters of 2016, German deliveries fell by sixper cent. Orders from Malaysia for German machine tools likewise showed a decline.
An improvement is anticipated for 2017. Oxford Economics is forecasting growth of 4.5 per cent for Malaysian GDP, following 4.3 per cent in the preceding year. Capital investments and machine tool consumption are also predicted to show a more substantial rise,of 4.4 and 3.9 per cent respectively. High-potential sectors include electrical engineering and electronics (where firms are targeting more sophisticated production operations with a higher proportion of automation), and medical technology. Malaysia is pinning substantial hopes on medical tourism, is building new hospitals, and expanding its production output of medical equipment. In the aviation industry, too, various investment projects have been launched with involvement from abroad. For example,Rolls-Royce intends to produce turbine casings.
“This is why Malaysian manufacturers require comprehensive information on new solutions for their production operations,”says Christoph Miller of the VDW. Exhibitors at the EMO Hannover 2017 will include representatives from all important supplier nations for Malaysia’s industrial sector. Machine tool manufacturers from more than 40 different countries, includingHPMT Industries Sdn. Bhd. from Selangor, will there be spotlighting their production technology, ranging fromsimple, sturdy and affordable to high-priced high-tech. Both stand-alone machines and concatenated systems will be on show,plus transfer lines and large machines, featuring a high degree of automation. “The EMO Hannover is the ideal platform not only for big investors,” is Christoph Miller’s explicit message to Malaysian trade visitors. “Weare particularly keen to encourage mid-tier users of machine tools to find out in detail what the world of metalworking has to offer.”
EMO Hannover 2017 – the world’s premier trade fair for the metalworking sector
From 18 to 23 September 2017, international manufacturers of production technology will be spotlighting “Connecting systems for intelligent production” at the EMO Hannover 2017. The world’s premier trade fair for the metalworking industry will be showcasing the entire bandwidth of today’s most sophisticated metalworking technology, which is the heart of every industrial production process. The fair will be presenting the latest machines, plus efficient technical solutions, product-supportive services, sustainability in the production process, and much, much more. The principal focus of the EMO Hannover is on metal-cutting and forming machine tools, production systems, high-precision tools, automated material flows, computer technology, industrial electronics and accessories. The trade visitors to the EMO come from all major sectors of industry, such as machinery and plant manufacturers, the automotive industry and its component suppliers, the aerospace sector, precision mechanics and optics, shipbuilding, medical technology, tool and die manufacture, steel and lightweight construction. The EMO Hannover is the world’s most important international meeting point for production technology specialists from all over the planet. In 2013, the fair attracted more than 2,130 exhibitors, and around 143,000 trade visitors from more than 100 different countries. EMO is a registered trademark of the European Association of the Machine Tool Industries CECIMO.
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