In the first quarter of 2010, demand orders for plastics processing machinery showed double-digit growth, which effectively demonstrated that the negative impact of the economic crisis of 2008-2009 has already been restored. The members of the German Association of Plastics Processing Machinery made it clear at the annual meeting on May 27 that the leaders of the group are still cautiously optimistic that business will continue to improve.
According to data from the German Machinery Manufacturers Association, the global production of plastics and rubber processing machinery fell by 22.8% in 2009. German mechanical original equipment manufacturers saw an even higher rate of decline in production, at 31.3%, which is equivalent to a reduction in market share from 25.3% to 22.6%.
Along with this downward trend, German machinery manufacturers have handed over their leading position in the market to China. In 2009, the decline in China's business was only 5.1%, and the global market share climbed to 23.5%, which was nearly double the figure in 2005. The third largest producer is the Italian machinery manufacturer, which has a market share of approximately 23.5%, and has remained basically unchanged for five years. During the same period, the American manufacturer’s world market share fell from 9.6% to 6.5%, and the Japanese machinery manufacturer’s market share dropped from 9.3% to only 4.1%.
Although the 2009 data is reasonable, during the conference, representatives of associations representing more than 90% of Germany's production of plastics and rubber processing machinery focused on how to make the fast-growing market better. “We have seen double-digit growth now,†said Ulrich Reiherhauser, chairman of the association and extruder manufacturer. Orders for plastics processing machinery are very strong in Asia, especially in China. Reiffenhauser said that in his company, the demand for blown film and sheet extrusion machinery used in packaging has picked up strongly. Orders mainly come from North America and Western Europe, but Asia and BRIC countries (Brazil, Russia, India and China) The pace of demand is slowing. The company's orders for the first quarter were comparable to the best quarters in 2008.
“Generally speaking, injection molding machines are installed almost every second in Asia,†says Dieter Straub, a member of the association’s leadership group and CEO of KraussMaffei. Straub believes that the company's business transferred to Asia is a trend over the years, including before the recession. “After this crisis, the situation has indeed changed. The market has really changed. The two latest trends are: the transfer of plastics processing to Asia; more automation and work unitization.â€
When asked about the current Greek debt crisis, Reifenhauser said that the members of his group agreed that the euro’s weakness is not an obstacle but rather a help because it makes German machinery manufacturers’ dependence on exports stronger.
Looking ahead, it is expected that orders will increase by 11% from this year to next year. This increase may threaten the raw materials and energy costs, the economically overheated developing countries, and the government's economic stimulus plan to lose its usefulness.
According to data from the German Machinery Manufacturers Association, the global production of plastics and rubber processing machinery fell by 22.8% in 2009. German mechanical original equipment manufacturers saw an even higher rate of decline in production, at 31.3%, which is equivalent to a reduction in market share from 25.3% to 22.6%.
Along with this downward trend, German machinery manufacturers have handed over their leading position in the market to China. In 2009, the decline in China's business was only 5.1%, and the global market share climbed to 23.5%, which was nearly double the figure in 2005. The third largest producer is the Italian machinery manufacturer, which has a market share of approximately 23.5%, and has remained basically unchanged for five years. During the same period, the American manufacturer’s world market share fell from 9.6% to 6.5%, and the Japanese machinery manufacturer’s market share dropped from 9.3% to only 4.1%.
Although the 2009 data is reasonable, during the conference, representatives of associations representing more than 90% of Germany's production of plastics and rubber processing machinery focused on how to make the fast-growing market better. “We have seen double-digit growth now,†said Ulrich Reiherhauser, chairman of the association and extruder manufacturer. Orders for plastics processing machinery are very strong in Asia, especially in China. Reiffenhauser said that in his company, the demand for blown film and sheet extrusion machinery used in packaging has picked up strongly. Orders mainly come from North America and Western Europe, but Asia and BRIC countries (Brazil, Russia, India and China) The pace of demand is slowing. The company's orders for the first quarter were comparable to the best quarters in 2008.
“Generally speaking, injection molding machines are installed almost every second in Asia,†says Dieter Straub, a member of the association’s leadership group and CEO of KraussMaffei. Straub believes that the company's business transferred to Asia is a trend over the years, including before the recession. “After this crisis, the situation has indeed changed. The market has really changed. The two latest trends are: the transfer of plastics processing to Asia; more automation and work unitization.â€
When asked about the current Greek debt crisis, Reifenhauser said that the members of his group agreed that the euro’s weakness is not an obstacle but rather a help because it makes German machinery manufacturers’ dependence on exports stronger.
Looking ahead, it is expected that orders will increase by 11% from this year to next year. This increase may threaten the raw materials and energy costs, the economically overheated developing countries, and the government's economic stimulus plan to lose its usefulness.
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