German Machinery Sees Orders Decline

Machinery used in the processing of plastic and rubber is experiencing difficulties as a knock-on effect from industries such as tyre manufacturing. According to the VDMA trade association of German plastics and rubber machinery producers, orders for German plastics and rubber machinery in the first half of 2008 have declined by seven per cent compared with the same period in 2007.

Orders had previously seen a continuous rise throughout 2007 up until 2008’s Q1. Therefore, the VDMA describes the situation as a turning point. Having said that, the high number of outstanding orders means that the association is not changing its full year 2008 forecast. It predicted an increase of 8 per cent in turnover to a value of 5.6 billion euros for core plastics and rubber machinery. However, considering the decline in orders, the association admitted that the decline would be felt in forecasts for turnover in 2009.

Machinery producers cannot avoid becoming affected by reduction in the level of economic activity in various markets for which plastics and rubber machinery is used. It just takes longer for this to be reflected in machinery sales. The overall decline in incoming orders casts a shadow over the 2009 results, said the VDMA, though it added that export deliveries – up 12.2 per cent in the first half 2008 – have performed particularly well in not only Asia, but also in the 27 EU member countries. This is perhaps an indication of exports to the USA performing less well. In June, VDMA had revealed a 14.9 per cent decline in the value of exports to the USA during 2007.