The VDMA Precision Tools Association has presented its annual results for 2019. According to the report, the industry's total turnover of around 10.4 billion euros was around 7% down on the record year of 2018. The German and Chinese markets in particular performed significantly worse than expected. As in other sub-sectors of mechanical and plant engineering, the structural change in the automotive industry, the significant decline in global car production and the general reluctance to invest had a negative impact on the precision tools sector. By contrast, the medical technology and aerospace sectors saw growth. The trade association is forecasting a production value of around 9.8 billion euros for 2020.

Between crisis and existential threat

Stefan Zecha, Chairman of VDMA Precision Tools, on the situation in the industry: "For about six months now, we have been regularly asked whether the current situation is a crisis for the precision tools industry. I would like to answer this diplomatically. One thing is certain: for some companies in our industry, the current economic phase is already a real crisis and for some even a threat to their existence. Hopes of a return to growth this year are currently muted. The majority of the industry is currently still reducing time accounts. However, many companies are already at least planning short-time working."

Zecha expects the situation to ease from the second half of the year at the earliest, when demand for tools could pick up again. However, he dampened expectations, as overall "2020 is likely to be below the previous year's level once again". Nevertheless, there are initial signs from the automotive industry that production could increase again over the course of the year and demand for tools could stabilize. He did not want to commit himself.

Harsh criticism of politics

Zecha also criticized politics in his statement: "Sometimes it seems to me as if economic policy is being pursued in our country without sense and reason. After all, it is foolish to saw at the branch you are sitting on. The sometimes fact-free approach to technologies such as the combustion engine, which is used as a scapegoat for all environmental pollution, is just one example. Yet it is the diesel engine - in a hybrid vehicle, for example - that can help protect the climate." Zecha emphasizes that the emissions of such an engine are not primarily a question of engine technology, but of the fuel used. "Once again, I would like to plead for politicians to take a measured approach to the framework conditions in order to preserve our livelihood and that of future generations. But it must, cobbler stick to your last, stay out of the technology discussion and let the engineers take care of the cleanest mobility," said Zecha. Zecha also criticized the over-regulation in Germany, which would disproportionately affect small and medium-sized companies in particular. He cited the Posting of Workers Directive and the GDPR as examples of this. Zecha: "The only effect of such regulations is that our companies lose competitiveness on the global market and jobs become less secure as a result."

The industry in figures

According to initial projections, the production value is around 10.4 billion euros according to VDMA Precision Tools. Manufacturers of cutting tools came off the worst of the sub-sectors with a drop of around 4 percent, followed by toolmaking with a drop of 8 percent and clamping tools with a loss of 9 percent. The fact that precision tools enable productivity gains without major investments is probably also the reason why the declines were not greater.