European Machine Tool Industry Council calls for EU support for manufacturing

At the European Machine Tool Industry Cooperation Committee (CECIMO) member meeting held in Ghent, Belgium in mid-June, the economic committee under the organization issued a report that the total machine tool production value of CECIMO member companies in 2011 was about 21 billion euros (264 billion), an increase of 26% over 2010. However, the group expressed concern that the growth was largely based on strong exports rather than internal EU demand. Based on the performance of the European machine tool industry in 2011, CECIMO called for a comprehensive industrial policy to support EU machine tool manufacturers in their efforts to develop new products and sell high-tech products to low-cost emerging markets. The organization said the euro zone debt crisis is preventing machine tool companies from obtaining the funds needed for continued industrial progress and should persuade EU regulators to improve their trade and tax policies to support EU manufacturers. CECIMO noted that the gross output of its member companies in 2011 was down 15 percent from its peak in 2008, and reiterated concerns it had previously expressed that weak domestic demand in the EU exposed the danger of a lack of support for European manufacturing. Exports by CECIMO member companies reached 16.5 billion euros ($20.7 billion) in 2011, almost the same as the 2008 peak. However, while machine tool consumption in 2011 was higher than in 2010, European machine tool imports combined with apparent European consumption (a measure of market 'sentiment') were well below their 2008 peak. The German Machine Tool Manufacturers Association (VDW) and the Italian Machine Tool Manufacturers Association (UCIMU) also pointed out in their recent quarterly reports that demand for machine tools in Europe is weak. In 2011, machine tool imports in the EU increased by 37% to EUR 7.9 billion (USD 9.9 billion); apparent consumption increased by 29% year-on-year to EUR 12.2 billion (USD 15.3 billion), a significant decrease from the 2008 total . However, these figures are not the entire content of the CECIMO report, the broader information shows that the global market position of European machine tool manufacturers provides financial and structural support (in terms of employment) to the EU economy. Martin Kapp, Director General of CECIMO, emphasizes, “The machine tool industry is not a project that can be created overnight and can be run without employees. The European machinery manufacturing industry has been developed over many generations, and now it is A high-value-added industry with a knowledge-intensive, well-trained workforce has become the backbone of the modern European economy.” However, CECIMO says that in order to remain competitive, this valuable asset needs to be supported. “Europe’s industrial base is declining, which means rising unemployment and the risk of becoming increasingly dependent on third-party countries in many ways. The hollowing-out of Europe’s industries, coupled with growing protectionism in rapidly industrializing countries, poses a serious threat to Europe’s security of supply in some strategic areas.” Kapp added, “Our overseas competitors have clearly recognized the importance of owning industries at the heart of the next industrial revolution and are adopting proactive and proactive policies to enhance its dominant position, or quick access to the necessary expertise and skills.” Kapp said Europe “urgently needs a clear vision for the development of its manufacturing industry, and targeted policies to support that vision.” He believes that the kind of A “piecemeal and selective” approach is expensive and ineffective. He called for action to be taken as soon as possible 'before it is too late, before we lose the ability to innovate and invent high-tech products necessary to rebuild the future European economy' to implement EU markets that would help European manufacturers enter emerging markets strategy. CECIMO said that the EU should revise its industrial strategy and formulate industrial policies and measures to support European manufacturers, especially small and medium-sized enterprises, in participating in global competition.