With the press conference in Tokyo, the EMO World Tour 2017 continues in the Asian region. Dr. Wilfried Schäfer of the German Machine Tool Builders’ Association (VDW) presented journalists and event visitors the contents of this year's EMO Hannover, supported by Oliver Frese of Deutsche Messe AG – with a high-quality image film serving as a special appetizer.

"Connecting systems for intelligent production", even this motto of the EMO Hannover 2017 indicates: hardly anyone can ignore the Internet of Things anymore. Accordingly, Dr. Schäfer also outlined the VDW's view on digital transformation – to which Japan, herself a high technology culture and the "heartland" of the robot, is of course no stranger. Representing the local industry, Takeshi Yamamoto, Senior Director and Division Manager of Overseas Division at Okuma Corporation, explained the Japanese approach.

Japan’s economy needs fresh impetus

The Japanese economy is currently struggling with the effects of the strong yen and declining demand in China, its most important market, accounting for almost a fifth of the country’s exports. For the ongoing year, the economic researchers at Oxford Economics are anticipating growth of 1.3 per cent in GDP, reflecting stronger growth in the economy than in the preceding year. Nonetheless, the pressure on the government to institute reforms remains high. The automotive industry is emphatically prioritising hybrid and hydrogen-powered vehicles, and doing intensive research into the vehicles of the next generation. Industry 4.0, the preparations for the 2020 Olympics, the negative interest rate of the Japanese Central Bank, a relaxation of the conditions applying to investments from overseas, particularly in the newly industrialising Asian countries, are all expected to boost spending on machinery. The government is also aiming to increase the amount of foreign investment in Japan.  

The country’s strengthened economic performance is being reflected in industrial production output, but not in capital investment, which is why machine tool consumption is stagnating. All important customer sectors for machine tools will be downsizing their investments, according to Oxford Economics.

The relocation of production facilities for automaking to other countries continues at a steady rate. This is rendering the traditional delivery chains between automakers and component suppliers more flexible, which offers opportunities for gaining additional business with new vendors of production technology. The best information platform for this purpose is offered by the EMO Hannover 2017.

All important suppliers for Japan’s industrial sector will be represented here with a major presence. Traditionally, Japan imports less than a fifth of the machine tools it needs. Most recently, the machines involved were worth 829 million euros. Germany is the biggest supplier nation, with a share of almost one quarter, followed by China, Taiwan, Switzerland and the USA. In 2016, German manufacturers delivered machines, including parts and accessories, worth 169 million euros. This corresponded to a rise of 15 per cent. Deliveries mainly featured laser technology, machining centres, plus parts and accessories. For the current year, however, business has suffered a setback. In the first three quarters of 2016, according to a regular VDW survey among its members, orders from Japan fell by more than 25 per cent.

“The German machine tool industry is firmly anchored in Japan’s manufacturing industrial sector when it comes to specialised solutions for sophisticated applications at automakers, their component suppliers, in the mechanical engineering sector and the aviation industry,” explains the VDW’s expert Wilfried Schäfer. “However, we are keen to encourage the many small and mid-tier users of machine tools to find out at the EMO Hannover what else the world of metalworking has to offer,” he adds. In 2013 more than 1,600 Japanese visitors travelled to Hanover.

“For Japanese manufacturers of production technology, too, a stronger focus on international markets is advisable,” adds the VDW’S Executive Director. They are globally competitive, as evidenced by their position on the world’s markets. With a volume of 11.1 billion euros, Japan ranked 3^rd in 2016 among the planet’s biggest producers of machine tools. The country exports more than half its relevant production output. Most recently, however, in 2016, according to the VDW’S global statistics, exports had fallen by 18 per cent.

Deliveries to Germany, however, increased by 7 per cent in 2016. Germany ranks 9^th among the most important markets for Japanese equipment manufacturers. Japan takes second place among the most important supplier nations for Germany’s industrial sector. In 2016, machines, parts and accessories worth around 375 million euros were imported to Germany from Japan, predominantly lathes and machining centres. Japanese manufacturers will accordingly be well advised to use the EMO Hannover 2017 for positioning themselves as can-do vendors on the global market. Around 90 Japanese manufacturers have registered so far. 

Photo: VDW