The German Machine Tool Association expects production to fall by 40% in 2009

The German Machine Tool Association recently announced that it is expected that German machine tool production will drop by 40% this year. After a five-year record peak, German machine tool production was worth 14.2 billion euros in 2008 and is expected to return to 1999 levels in 2009. Welker, chairman of the German Machine Tool Association, pointed out: 'In the past two years, the experience of the German machine tool industry can only be described by special circumstances.' Blind confidence that market demand will continue to grow has led to an increase in the international community's demand for manufacturing to record levels. Many large international consumer companies have made the decision to lock in international market share in advance by expanding production capacity on a large scale. This 'demand bubble' finally burst during the financial crisis at the end of last year, and as a direct result Germany experienced a sharp drop in orders for the machine tool industry. Facing the challenges of the current severe situation, Welker emphasized: 'Germany, as a machine tool producing place, is an extremely important link in the chain connecting users, equipment suppliers and distributors in the machine tool industry.' From the automotive industry to the machinery manufacturing industry, From the aerospace industry, the electrical engineering industry, the metallurgical industry to the metalworking industry, productivity and the efficiency of the supply chain will form the basis for the competitiveness of the German economy. Welk said whether sufficient liquidity will be available in the weeks, months and years ahead will be an important question for the industry. If conditions permit, medium-sized enterprises should first obtain sufficient liquidity to enable them to obtain financial support for business and research and development. When it comes to policy, he stressed that the loan funds provided through the economic stimulus plan should arrive as soon as possible. At present, the process of allocation of funds is still slow, and the process is very complicated due to the need to go through several banks with different loan procedures and procedures. Nevertheless, the German machine tool industry is still in a strong position in the global manufacturing sector. Welk is convinced that the machine tool industry will benefit once market demand resumes its recovery. Because, the machine tool industry has enhanced its own advantages through optimization and adjustment. More importantly, the cost reduction of manufacturing enterprises through technological transformation is also a measure to promote economic recovery. In fact, in terms of cost control, even during the economic boom, the German machine tool industry is very cautious about increasing the labor force, and the industry has less than 72,000 employees at its peak. The machine tool industry is one of Germany's top five manufacturing industries, providing manufacturing technology for metal processing in all industries, thus making a significant contribution to the innovative transformation and development of industrial production. The key role of the machine tool industry in industrial manufacturing and industry development has brought vitality to the overall industrial economy. In 2008, the German machine tool manufacturing industry had less than 72,000 employees (counting from enterprises with more than 20 employees), and the total industrial output value created reached 14.2 billion euros, reaching the highest value in the history of the industry, an increase of 12% over the output value in 2007. In this sense, despite the impact of the financial crisis, the recovery of the German machine tool industry is still full of confidence.