Germany precision tool

After registering a growth of production around 4 per cent, to 8,600 billion euros, in the year 2006 and a pretty good order intake in the first quarter of 2007, the German precision tool manufacturers were optimistic.

The export was decisive for growth which recorded sales of German precision tools in 2006. Given the good global juncture in that year, the German manufacturers increased sales in all important markets. In this regard, it should be noted the strong economic situation in American industry of machinery which, however, in the first quarter of 2007 already recorded a major step backward. Against this, exports in Europe, Central Asia and South Asia and Africa presented a good behaviour over the past year. The dominant market in Central Asia, and South is the India, where German exports grew by nearly 50 per cent in 2006.

From abroad order intake grew up at the beginning of 2007, compared with the same period of the previous year, in the following way: in cutting tools, 9 per cent; in the inventory of subject, a 10 per cent; and measurement devices, 18 per cent. Only the manufacture of tools has been a stagnation.

With a global quota of 21 per cent, in 2005 the German companies returned to occupy first place in the sector of the manufacture of precision tools, followed by Japan, with 15 percent, and United States, the India and Chinaeach one with a 6 per cent.

In 2006, the German precision tools market recorded strong growth, thus contributing decisively to the overall success of the sector. In addition, in the first quarter of 2007, the volume of domestic orders grew in all subsectors. Compared with the same period of last year, order intake rose by 5% in the subsector of the measuring devices, in the manufacture of tools did 18 per cent, in the cutting tools, 21%, and in the equipment of subject, a remarkable 27 per cent.

In 2006, the German precision tools market recorded strong growth, thus contributing decisively to the overall success of the sector. In addition, in the first quarter of 2007, the volume of domestic orders grew in all subsectors

Precision tools companies are facing fierce global competition and, therefore must innovate continuously. Just look at the share of investment in the sector to verify that this happens: with a 4.4 per cent, occupies the second place in terms of share of investment in the manufacture of machinery, surpassed only by the control systems. The average in the manufacture of machinery is at 2.5 per cent.

The conviction that the assessment of the total cost is an essential criterion when purchasing a tool has prevailed among many clients. Also, some companies already are not exclusively based on the purchase price when choosing a tool, but it takes into account the costs of production across all the useful life of the tool.

The growing use of new materials, such as titanium, sintered metals, materials composite or plastic, in sectors such as aerospace or medical engineering raises cutting tools manufacturers new opportunities but also new challenges. However, the companies have risen to the train and it is now common to work with their clients or in collaboration with schools in the development of efficient and reliable solutions.

Raw materials are of great interest for all. The current situation of raw materials is little grim for companies in the sector of precision tools and, moreover, is not expected an improvement in the short or medium term.

A very annoying issue, but increasingly for the German precision tool manufacturers, is the counterfeiting of their products. For businesses, this problem not only represents a financial loss, but it also damages your image, because imitations are defective. For this reason, the Association of manufacturers of precision tools supports the initiative of the VDMA "Pro Original". Before the imminent economic and legal consequences the VDMA expects that counterfeiters are discouraged.

In this sense, also BEC (Bilbao Exhibition Centre), which organizes the biennial of machine tools in Bilbao (next edition in 2010), has wanted to move forward in its commitment to the intellectual and industrial property with new actions against unfair competition in trade fairs. For this reason, the trade fair institution is currently developing a campaign to better protect the rights of their exhibitor customers.

The recent initiatives undertaken in this regard are close coordination with competent authorities in the field, the signing of MOUs with associations of manufacturers, the annex to a specific clause relating to the legal protection of the mark in the participation agreementthat forces acting under subjection to good practices, and the Advisory Service during the celebration of the professional competitions.