CAPTION: Strong demand from China for German machine tools. (picture alliance/dpa)
German machine tool builders' order books filled up strongly in the first half of the year. Orders increased by 34 percent compared to the same period last year, including (nominal) price increases, according to the German Machine Tool Builders Association (VDW) in Frankfurt. "In terms of the first half of the year, the volume is even almost at the record level of 2018," VDW's managing director Wilfried Schäfer said. He added that uncertainty was, however, still growing.
When it came to exports, the German manufacturers reported that they benefited in particular from the continued strong demand in China and the United States. The coronavirus-related shutdown in Shanghai and other cities in China did not have a significant impact in the second quarter, Schäfer said. Overall, orders in the April to June period were up 24 percent compared with the same period last year. Domestic orders were up 27 percent, while orders from abroad were up 23 percent.
However, due to supply bottlenecks and material shortages, orders cannot always be processed at the usual pace. This is reflected in the sales figures. In the first half of the year, sales were 7 percent higher than in the same period in the previous year. Adjusted for price increases (in real terms), the revenues stagnated. "Accordingly, as feared, the supply chain problems are far from over," said Schäfer.
Given the economic uncertainties, the sentiment in the machine tool industry has become more pessimistic recently, the VDW reported. There is no end in sight in Russia's war against Ukraine, Schäfer said. The energy supply in the coming autumn and winter in Germany remains uncertain, he added.
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A single purchase
