This news article was originally written in Spanish. It has been automatically translated for your convenience. Reasonable efforts have been made to provide an accurate translation, however, no automated translation is perfect nor is it intended to replace a human translator. The original article in Spanish can be viewed at Los mercados exteriores impulsan la recuperación de la máquina-herramienta española

On the eve of the General Assembly at which AFM celebrated 65 years, were presented the final data of the sector in 2010

Foreign markets driving the recovery of the Spanish machine-tool

Source: AFM, Spanish Association of machine manufacturers02/06/2011

on June 2, 2011

AFM, Spanish machine manufacturers association, presented at press conference after its General Assembly the final data of end of the year 2010. These data indicate that Spanish machine tool production, which recorded 631,9 million euros, has retreated 15% with respect to which was in 2009, 745,14 million euros. This decline is more pronounced in the subsector of boot, which has practically lost 18 per cent from the figures for 2009. The year has been more positive for the subsector of deformation which has fallen from more mild way, about 10%. Even so, Spain is the third largest producer and exporter of machine tool of the European Union and the ninth in the world.

Xavier Ortueta and Koldo Arandia, during the press conference where exposed the data of the sector in 2010.

Given the long period of maturation of machine tool orders, 2010 billing data reflects the low order intake recorded throughout the year 2009 and the first half of 2010.

Affected by the crisis in demand and the lack of confidence prevailing in the international context, the Spanish production of machine tools already suffered a strong decline in 2009, when it dropped a 29.5%, from 1.056,7 million euros with which sector closed down production of 2008 to 745,1 million euros. It is necessary to go back in the mid-1990s to remember figures of production of similar levels. In 2008 the number of production equaled the achieved in 2007 already anticipating the turnaround after three years, 2007, 2006 and 2005, characterized by significant growth in Billings.

"As in previous periods of difficulty the sector is benefited by its high degree of internationalisation," says Koldo Arandia

"The clear improvement in the capture of orders from overseas markets during the last quarter of the year 2010 makes us more optimistic and leads us to believe that during this financial year will to consolidate the recovery that we both look forward." Although, due to the very strong fall in demand that we experienced in 2008 and 2009, we are at the lowest level of production of the last fifteen years, order intake figures confirm a sustained growth of external demand. "As in previous periods of difficulty the sector is benefited by its high degree of internationalisation," says Koldo Arandia, President of AFM.

The export engine

Exports in 2010 has experienced a decline somewhat lower production, descending from the 551,9 million euros in 2009 to the corresponding to 2010 484,2, representing a drop of 12%. The rate of coverage of imports exports remains very high, with 231%. Exports in 2010 has been the destination for 76.6% of the Spanish production of machine tools. Spain maintains its position as ninth exporter of machine tool in the world. By markets, highlights extraordinary strength exhibited by China and India and the strength of Germany that, despite the bad times suffered, has recovered in the last six months.

If discusses the ranking of destinations of Spanish exports in 2010, you can see that Germany remains as the first destination representing 17% of our sales abroad. It is followed by China, which represents a 11.1% and which has risen to second place from third in 2009. Third, Brazil is situated with a 7.4% has been promoted from the 11th pick in 2009 and which has tripled its share. It is the fourth India place with 6.8%, followed by Italy, a country that has been exchanged positions with regard to 2009, with a 5.3%. Behind them, France (5.2%), Mexico (4.8%), Portugal (4.8%), USA (4.5%) and Russia (3.6%) complete the list of the ten main destinations of our exports. These 10 countries together 70.5% of total exports.

"Germany remains a key market for our machines." The relatively quick and above all very strong revival of the German economy has been a key factor for our businesses, coupled with the stable growth of the markets, Chinese and Indian. We also have good prospects in American markets. "After several years of some stagnation is renewed demand from Brazil, Mexico and the USA," explains the President of AFM.

New orders, Asia, especially China and India, now the locomotive of the sector

Spanish companies in the EMO 2011

In the absence of four months for the celebration of the EMO 2011, the largest and most important international fair dedicated to the world of machine tools and manufacturing technologies, 1,500 companies from 36 countries have already formalized their request. Time, provides for a net surface of more than 140,000 square meters exhibition occupation. As befits an event of its importance, EMO 2011 stresses once again by high degree of internationalization: more than half of companies registered to date comes from outside of Germany. After a very hard period of crisis, the leading global manufacturers of machine tools rely on the driving ability of a contest as EMO 2011. During the phase of stagnation in demand many companies have designed their resources to develop new products and services. With regard to the participation of Spanish companies, at the moment are registered 61 companies who have booked an area of 6,500 square meters, of which 31 are businesses associated with AFM and occupy 5.389 square meters. Since 1975, year of the first edition of EMO, Spanish companies manufacturers of machine tools are participating in the successive editions with important figures of occupation, always with the coordination of AFM. It's the biggest event of machine tools in the world and the main global showcase of manufacturing technologies, and is, along with the BIEMH, the international event of major importance for the Spanish machine-tool.

Low domestic demand vs. international vocation

Imports, meanwhile, grow a tiny 0.7% reaching 209,7 million euros compared to the 208,2 of 2009. Apparent consumption, result of adding production and imports and exports, removing back a 10.9%. Interior, already very damaged, demand has decreased 23.5%. The international vocation of the sector along with its ability to innovate and empower their machines of the most advanced technology proved to be key factors for survival over the past two years. The presence and the development of productive or commercial positions in the markets of greater growth, such as China, India or Brazil, are fundamental to the growth of the sector in the coming years.

"China consumes 41% of machines which they are manufactured in the world and we must take advantage of that reality," says Arandia

"The domestic market, despite the stimulation of demand plans released by the Administration, shows a worrying state." As suppliers of competitiveness for the industry, we are obliged to show our deep concern for the industrial disinvestment is happening in our country. "It is a proven fact that economies that have a powerful industrial sector have been able to overcome the economic swings of recent times faster", says Arandia. "All we have to claim a policy to gain weight to industry in GDP Spanish as a source of wealth." "The industry promotes the advanced services, generates prepared people and contributes to evolve towards a truly sustainable economy", added the President of AFM.

The challenges more focus in the internationalization, with special importance of the activities that involve taking positions in Asian markets where most of the growth in demand is concentrated. "China consumes 41% of machines which they are manufactured in the world and we must take advantage of that reality," says Arandia. The innovation focused on the specific application adapted to the needs of each sector and have with people ready to tackle such challenges complete the list of challenges in the sector.

AFM + AMT

On the eve of the General Assembly at which AFM held their 65-year history, and after exposure to the final data of 2010, Koldo Arandia explained one of the main projects currently undertaken since the Association: the eventual integration with the Association of accessories, tools and components for machine tools, AMT: "last year we started", with the authorization of our respective assemblies, a process of rapprochement between AFM (Association of manufacturers of machine tool) and AMT (Association of manufacturers of accessories, components and tools for machine tools). This process of rapprochement has helped generate a new project of integration which is intended to build a single stronger partnership and representation and service capacity. The culmination of the project will lead to join our teams and our companies. "It is a road on which we have set with enthusiasm, in the confidence that in the future will open up new job opportunities and cooperation".