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



The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
Doubling down on digital manufacturing; Data driving predictive maintenance; Electric motors and generators; Rewarding operational improvement
2017 Lubrication Guide; Software tools; Microgrids and energy strategies; Use robots effectively
Prescriptive maintenance; Hannover Messe 2017 recap; Reduce welding errors
The cloud, mobility, and remote operations; SCADA and contextual mobility; Custom UPS empowering a secure pipeline
Infrastructure for natural gas expansion; Artificial lift methods; Disruptive technology and fugitive gas emissions
Mobility as the means to offshore innovation; Preventing another Deepwater Horizon; ROVs as subsea robots; SCADA and the radio spectrum
Research team developing Tesla coil designs; Implementing wireless process sensing
Commissioning electrical systems; Designing emergency and standby generator systems; Paralleling switchgear generator systems
Natural gas engines; New applications for fuel cells; Large engines become more efficient; Extending boiler life

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

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.
The maintenance journey has been a long, slow trek for most manufacturers and has gone from preventive maintenance to predictive maintenance.
Featured articles highlight technologies that enable the Industrial Internet of Things, IIoT-related products and strategies to get data more easily to the user.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.
Maintenance Manager; California Oils Corp.
Associate, Electrical Engineering; Wood Harbinger
Control Systems Engineer; Robert Bosch Corp.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me