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German machine tool industry orders are weak
On November 25, 2014, the German Machine Tool Builders Association (VDW) released a report that compared to the same period last year, orders for the German machine tool industry fell by eight percent in the third quarter of 2014. In 2013, German domestic machine tool orders fell by 9%, while export orders fell by 7%. Looking back at the order volume of the machine tool industry in the first three quarters of 2014, compared with the whole year of 2013, it increased by 1%, domestic orders increased by 8%, and the demand for orders from abroad decreased by 3%. 'So far, the number of orders in 2014 has not been as good as expected,' said Dr. Wilfried Schäfer, executive director of the German Machine Tool Builders' Association. Recently, with the strong trend in the first half of 2014, German domestic machine tool orders entered a downturn in the third quarter. The instability of the global economic development has caused the investment of German customers to shrink frequently. At the same time, the crisis in Ukraine, the cooperation between Germany and Russia to be 'ice-breakingThis situation also reflects the level of foreign orders. After seasonal adjustment and easing, although the order curve has been rising continuously for several months, the expected substantial improvement has not been realized, which is also reflected in the monthly data change curve. Surprisingly, however, the European machine tool market has received orders from European countries, resulting in a 12% increase in recent orders in the third quarter of 2014, which lasted for 4 months. These include some Eastern European countries, notably Poland, Hungary and the Czech Republic, which all showed excellent order growth rates. Looking at the technologies involved in these orders, it is not difficult to find that the sluggish September has made the project business related to forming technology continue to decrease. In general, the needs of the project business for forming technology are characterized by significant market cycles and are accompanied by the purchasing behavior of the largest customer group, the automotive industry. The total procurement of forming technology in the automotive industry accounts for 25-30%, less than 30%. The sales volume of the machine tool industry in the first three quarters of 2014 ended with a negative growth of 6%. 'In this context, we had to reduce our production forecast by 3%, given the weak order situation, which was still achievable in the first half of 2014,' said Dr. Wilfried Schäfer.