Machinery production slows as economic uncertainty continues

Worldwide growth in machinery production stood at 6.3% in 2012, more than 10 percentage points lower than the previous year.

02/01/2013


IMS Research (acquired by IHS, Inc.)The continued global economic slowdown has had a severe impact on worldwide machinery production, with growth in all regions falling significantly in 2012 compared with 2011. According to the new Machinery Production Report from IMS Research (acquired by IHS, Inc.) worldwide growth in machinery production stood at 6.3% in 2012, more than 10 percentage points lower than the previous year.

Asia Pacific has coped best through the period of global economic turbulence, and has continued to grow faster than any other region. Even China, though, has seen growth in machinery output fall – down to an estimated 9.1% in 2012 (compared with 19.9% in 2011) – as a result of the weakening demand from a struggling Europe and shifting domestic monetary policies. Although this is the slowest rate of increase seen in many years, it still makes China one of the fastest growing nations.

Meanwhile, in Europe, the continued economic uncertainty has taken its toll. Sovereign debt problems, high unemployment and falling exports have meant that economic growth has been slow at best throughout most of Europe. For the region overall, GDP in 2012 stood at less than 1.0%, and is projected to remain as such throughout 2013, with several countries (including Belgium, France, Italy, Portugal and Spain)  expected to see declines in both years. Although machinery production is expected to outperform GDP, this backdrop is not one conducive to strong investment from Europe’s manufactures. Demand from better-performing economies, such as Asia and Eastern Europe, is not enough to prop up weak demand from the bigger Western European nations. Currently, the machinery production growth rate for Europe is forecast to be 3.5% in 2013, some way behind the 9.4% forecast for Asia Pacific. The Americas has fared reasonably well in contrast to Europe, growing 7.6% in 2012; rather faster than the 4.2% seen in Europe; within this, wind turbine production was amongst the best performing sectors, increasing by an estimated 18.7%. 

Within machinery production, there was significant variation between the different sectors. The semiconductor equipment sector, which is a notoriously cyclical industry, saw steep declines in 2012; so too did photovoltaic (PV) manufacturing equipment, suffering as a result of significant over capacity. Agricultural machinery, on the other hand, has held up reasonably well, supported by strong commodity prices, indicating that amongst the uncertainty there remains areas of optimism.

Source: IMS Research



No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2013 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Leaders Under 40 program features outstanding young people who are making a difference in manufacturing. View the 2013 Leaders here.
The new control room: It's got all the bells and whistles - and alarms, too; Remote maintenance; Specifying VFDs
2014 forecast issue: To serve and to manufacture - Veterans will bring skill and discipline to the plant floor if we can find a way to get them there.
2013 Top Plant: Lincoln Electric Company, Cleveland, Ohio
Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Plant Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.

Why manufacturers need to see energy in a different light: Current approaches to energy management yield quick savings, but leave plant managers searching for ways of improving on those early gains.
Electric motor power measurement and analysis: Understand the basics to drive greater efficiency; Selecting the right control chart; Linear position sensors gain acceptance
Protecting standby generators for mission critical facilities; Selecting energy-efficient transformers; Integrating power monitoring systems; Mitigating harmonics in electrical systems

Annual Salary Survey

Participate in the 2013 Salary Survey

In a year when manufacturing continued to lead the economic rebound, it makes sense that plant manager bonuses rebounded. Plant Engineering’s annual Salary Survey shows both wages and bonuses rose in 2012 after a retreat the year before.

Average salary across all job titles for plant floor management rose 3.5% to $95,446, and bonus compensation jumped to $15,162, a 4.2% increase from the 2010 level and double the 2011 total, which showed a sharp drop in bonus.

2012 Salary Survey Analysis

2012 Salary Survey Results

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.