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VDW Symposia

Andreas Mühlbauer,

US economic boom boosts demand for machine tools

In the first three quarters, incoming orders in the machine tool industry in the USA rose by 27% to EUR 3.4 billion, according to the US Machine Tool Association. In September alone, orders shot up by 50 percent.

The more than 130 US participants appreciated the opportunity for intensive dialog during the VDW symposia. © VDW

After China, the USA is the second largest machine tool market in the world with a share of 11% and a volume of around EUR 8 billion. Consumption is expected to increase by over 13% in dollar terms in 2018. In 2019, it will be another 5 percent. Around 60% of US machine tool demand is imported. Germany is the second most important supplier, accounting for just under a fifth. Reason enough for the VDW (German Machine Tool Builders' Association) to organize symposia for German manufacturers for the US market for the first time at the beginning of December.

"Things are currently going splendidly for our companies in the USA," says Dr. Wilfried Schäfer, Executive Director of the VDW. "All the general data is pointing upwards, not least because the US government has created investment-friendly conditions with its corporate tax cuts and attractive depreciation conditions. Our members are doing good business in their second-largest sales market. The VDW has therefore decided to organize two symposia in Detroit and Charlotte. We want to present our capabilities exclusively to US customers," Schäfer continues. 21 well-known German suppliers are taking part. They will be presenting their offerings on the topics of 5-axis technology and complete machining, precision and performance, digitalization and automation as well as gear cutting technology.

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For its symposia, the VDW has chosen two attractive regions with numerous machine tool users. Markus Schlipphak, Vice President of Engineering, Heller Machine Tools, in Troy, confirms: "The regions around Detroit and Charlotte are very interesting because of the numerous customer industries located there. In particular, the automotive and supplier industries are strongly represented there and offer excellent business opportunities."

German machine tool manufacturers active in the USA

The USA is by no means a blank map for German manufacturers, but rather the second largest export market. Last year, machines worth more than 1.2 billion euros were exported, mainly machining centers, parts and accessories, lasers, grinding machines and lathes. In the first three quarters of the current year, exports were 6 percent up on the previous year. However, the market is not only served from Germany. Almost 50 suppliers are also active locally with sales, service and/or production in more than 170 branches. "The USA is the third largest production location for our companies after Switzerland and China. In addition to the exports mentioned above, machines worth 325 million euros were produced in the country itself for the US market in 2017," explains Schäfer from the VDW. Jürgen Gögelein, Area Sales Manager at Chiron Werke in Tuttlingen, adds: "With our own branches in Detroit and Charlotte, we are closer to our customers in the USA in every respect. This has proved extremely successful for us in the areas of sales, service, turnkey engineering and training."

German manufacturers also have good sales opportunities in the USA because they can supply a wide range of high technology, as there are hardly any significant US suppliers active in this segment. "There are no US suppliers in the high-end segment," confirms Maximilian Waizenegger, Sales Manager, Maschinenfabrik Berthold Hermle, Gosheim.

Quality from Germany is very popular with US users

The USA wants to modernize its industry and make it fit for the global market. Advancing automation offers new opportunities, for example in the networking and monitoring of industrial plants and machines, the optimization of production processes and increasing efficiency throughout the entire supply chain. Alternative materials such as titanium or carbon fibers require new processing technologies. German suppliers have a lot to offer here.

Quality from Germany is an important sales argument for US customers. "We have had very good relationships with German machine tool manufacturers and their representatives since the end of the 1990s, i.e. for over 20 years. Once these relationships and an understanding of their needs are established, it becomes a kind of partnership and that is the reason to rely on German machines," says symposium participant Lincoln Hughes, Director of Manufacturing Systems and Analytics, American Axle & Manufacturing.

Not least for this reason, the more than 130 US participants also appreciated the opportunity for intensive dialog during the symposia. The presentations given by the participating companies provided good insights into their products and services. The B2B meetings, which had already been planned in advance, and the evening reception offered a wide range of opportunities to deepen contacts. "The format is good. It gives a good overview of the various products and solutions. I find some of the presentations very interesting because they allow us to think through new ideas and implement some of the best solutions," summarizes Hal Gerber, Executive Director Market Development, Shiloh Industries.

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