THE MACHINE TOOL SECTOR HAS GROWN BY 1.8% IN A COMPLICATED AND TOPSY-TURVY 2016 The turnover of the total AFM has remained the same and the metal forming subsector has recorded a historical rise, anticipating a 2017 with a lot of work. The metal cutting subsector has supported the pull in a troubled and bearish strategic market panorama. The domestic market has noticeably slowed down during the second quarter of the year, showing the need to implement measures to foster the purchase of production equipment with a high multiplying effect. San Sebastian, 25 January 2017.- The provisional figures corresponding to the close of FY 2016 for the Machine Tool and Advanced Manufacturing Technologies sector indicate a turnover in excess of 1.5 billion Euros, increasing by 1.8% over 2015 figures. Thanks to the increasingly longer project maturity times, part of the turnover will be materialised in 2017. There has been very little change in metal cutting and metal forming, as in the case of components, tools, accessories and machining. The president of AFM, Antxon López Usoz, states: Despite the data showing a slight growth in aggregate figures, the truth is that 2016 has been a complicated and turbulent year. In the area of machines, metal cutting has suffered in its traditional markets (Germany, China, USA, India, Russia or even Spain) that have shown clear signs of weakness. So, despite having achieving a similar turnover to that of 2015, this has meant that order capture has been complicated, and the turnover has dropped slightly. Metal forming, however, drawn by the high investment volume of the car industry, has recorded historical capture figures in all markets, which predict a very interesting production activity throughout this year. With regards to the other subsectors, components and accessories have evolved in a similar way to the machines that they form part of, and tools have grown in a context where industrial activity maintains a reasonable pace.
EXPORTS Exports rose by 3.7% in 2016, reaching 1.15 billion Euros, very close to the highest figure that was reached in FY 2013. In the analysis by countries (with data until the month of October), China recovered top position, followed by Germany, Mexico, USA and Portugal. The following five countries are Italy, France, Poland, United Kingdom and Hungary. The return of China to the top of the ranking after its marked decline in 2015 (year when the figure dropped to practically a third of the 2014 exports) is noteworthy, and although there is still a long way to go before returning to that figure, it is growing soundly in a market that is difficult to interpret. Germany has repeated the data of the previous FY, but still far from the figure reached in 2012 or 2013. With very good results, Mexico has increased by 22% and is now in third position for the first time, and the USA, the first market in 2015, has dropped to fourth followed by Portugal. DOMESTIC MARKET The domestic market continues to grow (2.9%), although it has started to show signs of slowing down. For the first time for many years, consumption is over 0.6 billion Euros, a figure that, despite doubling the results of the valley of the crisis, is still around 40% less than was normal prior to the crisis. The President of AFM states: The domestic market continues to show surprisingly low production equipment consumption figures. Although it is true that we have regained some joy over the last three years, figures are very modest for a country that needs to be industrially competitive. We know that the consumption of machine tools is a clear indicator of our industry s competitive capacity, and Spain needs a decisive boost to investment in production equipment with a multiplying effect, such as machine-tools. In this regard, the Renove plans set up by some administrations such as the Basque one, would be absolutely necessary on a national level, and should be accompanied by decisive tax measures that reward reinvestment in production equipment rather than distributing earnings. The effects of these mid-term policies are essential to ensure the existence of a relevant industrial activity. ORDERS Although the month of December has not yet been closed, an interesting two-digit growth is expected, which, as mentioned, involves a topsy-turvy situation for start-up (foreseeing a slight drop), and deformation (which points to a good growth). 2017 FORECAST The Director of AFM, Xabier Ortueta, augurs a 2017 with growth in turnover. Although, basically, our companies are always going to be battling to get orders and projects, the extraordinary capture of the deformation subsector points to a growth in turnover for 2017. Anyway, we must be aware that the current geopolitical panorama is frankly uncertain at a national, European and international level, but we trust that the sector can conclude a similar, but more balanced year, in terms of capture.
MORE COMPANIES, MORE RESILIENCE TO TACKLE CHALLENGES The sector is founded on a structure of companies that make up a large cluster, with a very interesting concentration of industries in the same geographic area, which reinforces the competitiveness of the participating companies and also cooperation interests. With a heart that talks about machine tool and manufacturing technologies, AFM also harbours such wellrooted and complementary sectors as the world of machining and metal-mechanical transformation, as well as the manufacture of hand tools, and industrial hardware products. With more than 330 companies, the AFM Advanced Manufacturing Cluster is going to focus its efforts in 2017 on promoting the use of the synergies that are generated within the group among its companies, fostering an increase in competitiveness through cooperation, the President of AFM concludes. 2016 EVENTS AFM Cluster general meeting: 5 May, in Sebastian, Science and Technology Park of Gipuzkoa Addit3d- Ferroforma- Subcontratación: from 6 to 8 June at BEC (Bilbao) EMO Hannover 2017: from 18 to 23 September in Hannover 21 Advanced Manufacturing and Machine Tool Congress: from 25 to 27 October, in Sebastian, Science and Technology Park of Gipuzkoa
2016 PROVISIONAL DATA TOTAL FOR SECTOR 2016 2015 % 16/15 TOTAL PRODUCTION* 1.500,95 1.474,18 1,82% Metal cutting 605,32 602,72 0,43% Metal forming 336,74 337,45-0,21% Components 184,28 183,10 0,64% Other machines and technologies 136,24 124,10 9,78% Tools 109,61 108,19 1,31% Machining and other services 70,60 68,40 3,21% Accessories 58,17 57,44 1,27% TOTAL EXPORT 1.152,65 1.111,19 3,73% Export for Metal cutting 556,17 543,98 2,24% Export for Metal forming 251,15 227,86 10,22% Export for Components 127,12 126,61 0,40% Export for other machines and technologies 76,39 71,51 6,82% Export for Tools 61,03 60,85 0,30% Export for machining and other services 44,31 43,24 2,47% Export for Accessories 36,48 37,14-1,78% Domestic sales 348,31 362,99-4,04% Export / Production 76,79% 75,38% * After deduction of the part of the accessories and components sold for Spanish-produced machine tools. TOTAL FOR SECTOR PRODUCTION EXPORT 2011 1.239,21 999,88 2012 1.327,66 1.088,13 2013 1.412,11 1.178,22 2014 1.383,00 1.101,18 2015 1.474,18 1.111,19 2016 * 1.500,95 1.152,65 * provisional
MACHINE TOOLS 2016 2015 % 16/15 TOTAL PRODUCTION 942,06 940,17 0,20% Metal cutting 605,32 602,72 0,43% Metal forming 336,74 337,45-0,21% TOTAL EXPORT 807,32 771,84 4,60% Metal cutting 556,17 543,98 2,24% Metal forming 251,15 227,86 10,22% Domestic sales 134,74 168,33-19,95% Export / Production 85,70% 82,10% Imports 467,57 416,79 12,18% Apparent consumption 602,31 585,12 2,94% Export / import coverage 172,66% 185,19% Domestic sales /Consumption 22,37% 28,77% COMPONENTS 2016 2015 % 16/15 TOTAL PRODUCTION 184,28 183,10 0,64% TOTAL EXPORT 127,12 126,61 0,40% Domestic sales 57,16 56,49 1,19% Export / Production 68,98% 69,15% OTHER MACHINES AND TECHNOLOGIES 2016 2015 % 16/15 TOTAL PRODUCTION 136,24 124,10 9,78% TOTAL EXPORT 76,39 71,51 6,82% Domestic sales 59,85 52,59 13,80% Export / Production 56,07% 57,62% TOOLS 2016 2015 % 16/15 TOTAL PRODUCTION 109,61 108,19 1,31% TOTAL EXPORT 61,03 60,85 0,30% Domestic sales 48,58 47,34 2,62% Export / Production 55,68% 56,24%
MACHINING AND OTHER SERVICES 2016 2015 % 16/15 TOTAL PRODUCTION 70,60 68,40 3,21% TOTAL EXPORT 44,31 43,24 2,47% Domestic sales 26,29 25,16 4,48% Export / Production 62,76% 63,22% ACCESSORIES 2016 2015 % 16/15 TOTAL PRODUCTION 58,17 57,44 1,27% TOTAL EXPORT 36,48 37,14-1,78% Domestic sales 21,69 20,30 6,85% Export / Production 62,71% 64,66% Spanish exports in machine tools by countries in 2016 (percentage of total) CHINA: 13,4% 25,5% 13,4% GERMANY: 12,3% MEXICO: 9,2% USA: 8,6% 1,8% 3,1% 4,6% 6,2% 7,5% 7,8% 8,6% 12,3% 9,2% PORTUGAL: 7,8% ITALY: 7,5% FRANCE: 6,2% POLAND: 4,6% UNITED KINGDOM: 3,1% HUNGARY: 1,8% OTHERS: 25,5% * provisional
NOTE 1/2017 For further information please contact the Director of the Communication Department, María Ruiz-Lopetedi (maria.rlopetedi@afm.es), telephones +34 943 309 009 / +34 679 979 083. ABOUT AFM CLUSTER AFM, Advanced Manufacturing Technologies, the Spanish Association of manufacturers of machine tools, accessories, component parts and tools, represents 90% of companies specialising in machine tools and advanced manufacturing technology that exist in Spain today. From its headquarters in San Sebastian and since its consolidation in China, it works to promote internationalisation and the technological innovation of its associated companies. AFM Advanced Manufacturing Technologies is a member of CECIMO and of ECTA, the European associations of manufacturers of machine tools and of cutting tools, respectively, as well as the joint organiser of BIEMH, the Spanish Machine tool Biennial, whose 30 th show will be held in Bilbao from 28 May to 1 June 2018. It groups together 121 manufacturing enterprises and 41 collaborator members. Furthermore, AFM operates ADDIMAT, the Spanish Association of Additive Manufacturing Technologies and 3D, which groups together all the players with interests in developing and promoting additive manufacturing and 3D. ADDIMAT provide a forum on which a coherent and differentiated image of the additive manufacturing and 3D industry must be built, giving a voice to its companies. 58 organisations form part of ADDIMAT. AFM also manages ESKUIN, the hardware and industrial supply cluster that groups together 23 companies and whose mission is to promote the presentation, defence, internationalisation, standardisation and promotion of its associates common interests, as well as to carry out actions aimed at improving the competitiveness of the sector through inter-entrepreneurial cooperation. AFMEC, the Spanish Association of Mechanical Engineering,, incorporated on 27 May 2016 in Elgoibar with the support of AFM and another 11 companies, is managed from AFM, too, and it already has 92 members.