The first half of the international machine tool market summary

**Abstract** Introduction: This article provides an overview of the four major global machine tool manufacturing countries—United States, Japan, Italy, and Germany. It examines the international machine tool order trends in the first half of the year. In the U.S., orders saw a decline, with data from the American Manufacturing Technology Association showing that in June 2013, metalworking machine tool orders reached $430 million, down 5.8% from the previous month and 5.7% compared to the same period in 2012. **Guide** The United States, Japan, Italy, and Germany are the four leading countries in the global machine tool industry. This article looks at their performance in the first half of the year, analyzing the international machine tool order data. ![Machine Tool Industry](http://i.bosscdn.com/blog/op/e2/01/308260943261285.jpg) **US Orders Declined in the First Half of 2013** According to the American Manufacturing Technology Association, US metalworking machine tool orders in June 2013 were $430 million, down 5.8% from May and 5.7% year-on-year. The total number of orders was 2,229 units, a decrease of 119 units from the previous month. Specifically, metal cutting machine tool orders dropped by 1.8%, reaching 2,094 units, a decrease of 76 units from May. Meanwhile, forming machine tool orders fell by 36% to $34.4 million, with 135 units ordered, down 43 units from the previous month. In the first half of 2013, total US metalworking machine tool orders amounted to $25.4 billion, a 5.7% drop from the same period in 2012. Metal cutting machine tool orders were $2.29 billion, down 5.9%, while forming machine tool orders totaled $250 million, down 3.7%. Douglas Woods, president of the American Manufacturing Technology Association, noted that declining summer orders are a recurring trend, having occurred for six consecutive years. However, the overall order level remains strong, as the manufacturing sector continues to drive economic growth. Durable goods orders hit a record high of $240 million in June, and the PMI index reached 55. He expects manufacturing technology orders to remain stable for the rest of the year. **Italian Machine Tool Orders Fell 6% in H1 2013** According to Business Weekly, the Italian machine tool industry showed slight improvement in Q2 2013, with orders up 0.7% year-on-year. However, Q1 orders fell nearly 10%. Luigi Galdabini, president of UCIMU (Italian Machinery Industry Association), pointed out that domestic demand has decreased, but investment in machinery is still strong due to limited funds. Due to weak domestic demand, the Italian machine tool industry experienced two consecutive years of decline. Domestic orders fell by 21.2% in Q2, while foreign orders increased by 6.2%. In the first half of 2013, the UCIMU new order index dropped by 6%, with domestic orders down 29.6% and foreign orders down 1%. Galdabini believes this is due to reduced domestic and foreign demand, and the lack of investment in production technology is a critical issue affecting the entire supply chain. Currently, the Italian machine tool industry is calling on financial officials to provide stronger capital support and clear regulations to boost credit availability for domestic manufacturers. **Japanese Machine Tool Orders Drop as External Demand Increases** In the first half of 2013, eight major Japanese machine tool manufacturers reported total orders of 219.43 billion yen, a 17.1% decline from the previous year. These companies include Mori Seiki, OKUMA, Makino, Osaka Machine OKK, Toshiba Machine, Tsugami Jettage, Toyota Machin, and Mitsubishi Heavy Industries. Of the 219.43 billion yen in orders, 74.22 billion yen came from domestic sources, down 21.1% year-on-year, while external orders reached 145.21 billion yen, down 15% year-on-year. The share of external demand increased to 66.2%, up 1.7 percentage points. Experts suggest that the slowdown in China’s economy, the decline in smartphone demand, and the need for flood recovery in Thailand contributed to the drop in orders. However, the recovery of overseas economies and the weaker yen helped increase total orders by 1.6% compared to the second half of 2012. Analysts expect a slow recovery in the second half of 2013. **German Machine Tool Industry Seeks Growth in Asian Markets** According to a recent survey by the German Machine Tool Manufacturers Association, German machine tool orders fell by 19% in Q1 2013, with domestic orders down 21% and foreign orders down 18%. Scheffer, chairman of the association, noted that declining demand for machine tools was influenced by economic uncertainty, which affected small and medium-sized enterprises’ willingness to invest. Domestic gold cutting machine tool orders fell by 26%, while forming machine tool orders remained flat, driven by the automotive industry. Schäfer expects a modest improvement in the second half of the year, with output expected to rise by 1%. The main hope lies in the Asian market, especially China, where the rapid economic development continues to drive demand. Although Chinese machine tool orders dropped by 30%, recent indicators show signs of recovery. The Purchasing Managers Index rose to 52 in January 2013, up from its lowest point in August 2012, and industrial production grew by double digits. North American operations are also showing steady growth, and the modernization of German industries is increasing the importance of the Russian market. Additionally, the international automotive, aerospace, and machinery sectors are making strategic investments, which are expected to lead to significant growth in 2013. For the German machine tool industry, Asia remains the key driver of growth, despite the challenges faced in other regions.

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