German machine makers see sharp orders increase

According to figures provided by the country's VDMA trade association, plastics processing machinery manufacturers in Germany have an awful lot to be happy about as orders grew 85% in the first half of the year.

Of course, this growth is compared to the first half of 2009, hardly a profitable period for much of the industry, but 85% growth is always fun. "No one could have foreseen the 85% jump in orders recorded by the industry in the first six months of the year; it is a truly remarkable performance that gives grounds for optimism," stated Ulrich Reifenhäuser, chairman of the VDMA Plastics and Rubber Machinery Association, as well as co-managing director of the extruder manufacturer that bears his last name. "Incoming orders have grown rapidly every month since September 2009 and actually passed the 100% mark in June 2010."

During the first six months of the year, orders from domestic processors were up by 26%, while demand from abroad grew by 117%. Orders from within the European common currency zone increased 51%. The volume of orders on the books now stands at 6.3 months, compared with just 4 months this time last year.

Sales have not kept pace, however. In the period from January to June 2010, sales were 3% below the previous year's total. "The relatively high level of domestic sales during the same period last year explains the 23% decline this time around," said Thorsten Kühmann, managing director of the Association. Sales to customers abroad, on the other hand, rose by 7%, with those in the euro zone up 4%. "In the light of the marked rise in incoming orders, we expect sales to grow by 11% by the end of the year," added Kühmann.

According to the Association, its polling shows there also is a sense of optimism in the industry about how the order position for all regions is likely to develop in the second half of 2010. The number of firms complaining of a lack of orders has fallen by two thirds. "That is an ideal scenario ahead of K 2010," the triennial tradeshow held in Düsseldorf from Oct. 27 - Nov. 3, noted Reifenhäuser.