German plastics machinery manufacturing continues to lead the world – German plastics machinery - Arhive
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German plastics machinery manufacturing continues to lead the world
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In real terms, the VDMA reported that German plastics and rubber machinery manufacturers expect a four per cent year-on-year increase, with a three per cent increase forecast for 2018.
“The extremely pleasing development in export markets was particularly striking in the second half of 2016,” said Ulrich Reifenhäuser, Chairman of the VDMA Plastics and Rubber Machinery Association.
There was a sharp increase in export sales in the July-December period of last year, resulting in export growth of 5.1 per cent for the whole of the year 2016.
The continuing dynamic trend in the world economy will lead to strong demand for German plastics and rubber machinery in 2017 too.
“Of course, the successful K 2016 fair provided a further boost, paving the way for additional sales,” added Reifenhäuser.
German output rose by six per cent to €7.4 billion (£6.5 billion), more than world production as a whole, which was up 3.1 per cent and is estimated to amount to €34.9 billion in 2016.
After declining for three years running, exports to China are also set to pick up again with growth forecast for 2017 as a whole.
After a further slight fall in the first quarter of 2017 (down 1.7 per cent), supplies to China are expected to increase again in the following months. The expansionary economic policy measures of the Chinese government in particular are providing a boost in this regard.
Exports to the US, the biggest sales market for German plastics and rubber machinery, maintained their high level in the first quarter of 2017. Further strong growth (plus 58.3 per cent) was recorded in Mexico, the third-largest sales market, and in South Korea (plus 44.6 per cent). As a result, South Korea shot up the rankings, entering the top 10 of countries buying German plastics and rubber machinery in the first quarter of 2017.
“In Britain, on the other hand, the effects of Brexit are slowly being felt,” stated Thorsten Kühmann, Managing Director of the VDMA Plastics and Rubber Machinery Association in his trend analysis.
Exports fell in the first quarter by 31 per cent, resulting in that market dropping from 4th to 8th place among the major plastics and rubber machinery buying countries.
In 2016, German export volume increased on the whole to €4.9 billion. As world trade in plastics and rubber machinery rose by only one per cent, the German share increased sharply to the current 22.8 per cent. The Chinese share, on the other hand, was down slightly to 14.7 per cent.
“As a result, China’s suppliers are losing ground in the race to catch up and the gap is widening again,” stated Reifenhäuser.
The German domestic market picked up considerably in 2016. Foreign competitors also benefited from this. Supplies of imports to Germany rose by 8.9 per cent to €1.2 billion. Austria remained the main supplier country and the number of machines that it sold to Germany increased again.