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EMO Hannover Blog

EMO World Tour: stopover in Chicago

March 2017
Author: Theodora Laser (Press and public relations)
Company: Verein Deutscher Werkzeugmaschinenfabriken e.V.
EMO World Tour: stopover in Chicago

Journalists and visitors gathered at the press conference of the EMO World Tour in Chicago. Dr. Wilfried Schäfer, Executive Director VDW (German Machine Tool Builders’ Association) and Larry Turner, representative of the Deutsche Messe AG USA, presented EMO Hannover 2017 and the topics of the fair. Guestspeaker David J. Koepp. President and CEO of AllWorld Machinery Supply already visited the EMO Hannover. Among other things, he reported on the positive experiences of his EMO participation and visits in the past. Quote: "You don’t come back from the EMO with a stack of business cards and brochures, like it is at other fairs, but you return with new ideas and solutions for the own business". Especially for his own product spectrum, Koepp sees important impulses on EMO-topics like Internet of Things (IoT). "Further improvements in energy efficiency can be achieved with intelligent hydraulics and cooling systems".

The USA’s automotive industry, plus its plane-making and mechanical engineering sectors, are looking for state-of-the-art production technology

The USA’s economy has recorded a continual uptrend for seven years now, driven primarily by private consumption. Investment activity in the nation’s industrial sector, by contrast, is sluggish. Important sectors like mining, oil- and gas production are at present in a phase of consolidation, according to gtai (Germany Trade & Invest), an important source for observing developments in the global economy, capacity utilisation is in many parts of the USA’s industrial sector unsatisfactory. Falling corporate profits and weak demand from abroad are causing genuine concern.

The automotive industry, by contrast, is doing well. Sales of cars, SUVs, and other light vehicles are reaching record levels. It’s not least the favourable petrol prices, attractive financing conditions and moderately rising incomes that are boosting sales. With the trend towards downsizing, new technologies are being adopted on a broad front in the USA’s automotive industry, like turbocharging, direct fuel injection or start-stop systems. Thus capital investments are preprogrammed, which can be prepared to optimum effect at the EMO Hannover 2017.

80 per cent of the vehicles sold in the USA are manufactured there as well. So leading-edge production technology is much in demand in the nation’s automotive factories. There is also plenty of catching up to do. This is why almost all producers have announced major projects for modernising and upsizing their capacities. According to Oxford Economics, the USA’s automotive industry will be increasing its capital investment by 1.0 per cent in 2017. Technologies for reducing fuel consumption, and lightweight components, are much in demand .The focus here is on machining aluminium, combinations of lightweight materials, and carbon. This also applies, by the way, to aircraft manufacturers, who intend to invest 5.6 per cent more this year. High-quality, sophisticated production technology for these applications will be showcased at the EMO Hannover 2017.

Demand for machine tool is also being substantially boosted by parts of the USA’s mechanical engineering sector. Investment is predicted to come especially from producers of food and packaging machinery, textile and plastic processing machines


USA and Germany are close partners when it comes to machine tool business

The USA imported more than 60 per cent of its machine tool consumption, totalling around 7.5 billion euros, in 2015. With a share of 16 per cent, the Germans rank 2nd among the major supplier nations concerned, after Japan. From a German viewpoint, in 2016 the USA was the second-most-important export market, with a share of almost 12 per cent. Machines, parts and accessories worth just under 1 billion euros were supplied, corresponding to an increase of 11 per cent. Demand was chiefly for parts and accessories, machining centres, bending machines, laser systems and grinding machines.

“The German machine tool industry is very well anchored among the major American automakers, their component suppliers, the aviation industry, and the mechanical engineering sector,” explains VDW expert Dr. Schäfer. “We also, however, want to encourage the numerous mid-tier and relatively small users of machine tools to find out at the EMO Hannover what else the world of metalworking has to offer.”

“The USA’s manufacturers of production technology also need to intensify their focus on international markets,” continues the VDW’s Executive Director. Their position on the global market demonstrates how internationally competitive they are. With a volume of almost 5 billion euros, and a share of more than 7 per cent, they rank among the Top 10 of the most important manufacturers worldwide. They export around 43 per cent of their production output. According to the VDW’s global statistics, most recently in 2015 exports had increased by a tenth.

Deliveries to Germany fell by a double-figure percentage in 2016. Germany ranks 6th among the most important markets for the USA’s equipment manufacturers. The USA ranks 8th among the most important suppliers for Germany’s industrial sector: in 2016, machines worth round 120 million euros were imported to Germany from the USA, primarily parts and accessories. US manufacturers would accordingly be well advised to use the EMO Hannover 2017 to position themselves as can-do vendors on the global market .


Photo: VDW


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