German Machine Tool Production to Rise 15%

German Machine Tool Production to Rise 15% Executive director of the German Machine Tool Builders' Association (VDW), Helmut von Monschaw, reported: 'We have just right now corrected our production forecast upwards to 15%.' With a production volume of EUR 12.4 billion, the German machine tool branch will then once again break all records. In the first six months of 2007 German exports grew by 16%.In 13 of the 15 most important markets, export deliveries rose by double percentage figures.Business with the most important market, China, boomed yet again in the first half of the year with a growth rate of 30%. On the other hand, the 15% slump figure for German supplies to the second most important market, the USA, is misleading. As von Monschaw explained: 'On account of the low exchange rate for the US dollar, German manufacturers have vigorously expanded their production activities in the USA. What's more, many deliveries to US American customers are now sent to the NAFTA nation Mexico where they have outsourced their production.' Meanwhile, inside seven years, Russia has worked its way up from 23rd to 5th place in the top market league table.Demand from all the important domestic customers likewise remains robust. The high demand for replacements, well-utilised industrial capacities, greater output on the customers' part, and the even more beneficial capital allowance conditions in the current year all serve to stimulate the investment activities of the industry.Added to which, the global economic climate is exceptionally positive. In 2006, the global production of machine tools was already in its third successive upswing year at EUR 47.3 billion and with a growth figure of 10%. All indicators point to a continuation of the trend, and production is forecast to once again grow by 10% iduring 2007. * EMO Hannover 2007 to boost investment - the state of the global economy plays a decisive role on the success of EMO Hannover 2007. During September 17-22, 2,100 exhibitors from 42 nations will present their industrial manufacturing innovations in a net exhibition space of 180,000m2.There will be about 5% more exhibitors and 12% more exhibition space than 2005. The last EMO Hannover attracted 160,000 trade visitors from more than 80 countries.'In 2005, many EMO exhibitors already noted that the positive investment climate at the fair led to far more contracts being drawn up than anticipated,' said von Monschaw. The positive effect this had on exhibitors' business developments was still to be felt well after the trade fair itself.