German machine tool companies are currently in a difficult period. In the first half of 2009, orders have been reduced to 1/3 of the same period in 2008, which is the result of the combined decline in domestic and foreign orders. After a record increase of 5 years in a row, the German Machine Tool Manufacturers Association (VDW) predicts that the German machine tool industry's output in 2009 will decline in full, with a drop of 40%. The German government has adopted two economic revitalization plans. The funds in these plans are mainly used for the construction of public facilities in cities and communities. The machine tool industry will indirectly benefit from these measures because equipment manufacturing, electronics industry, or professional technical services will prompt related companies to purchase machine tools. We have obtained more and more reports from international economic organizations, showing that the most difficult phase of the economic crisis has passed. However, even when the industry's orders began to increase again, experience tells us that at least six months have passed before this effect will be reflected in the orders of the machine tool industry.
Given the continuing demand for goods and services throughout the world, the demand for machine tools is also the same. Therefore, we believe that the most important thing now is for international investors to regain confidence as soon as possible so that the demand for machine tools can gain momentum. Some of the most important ways to regain confidence are: the market maintains continuous openness; banks fulfill their responsibilities, including effective supervision of international financial markets; and enterprises, especially small and medium-sized enterprises, are able to obtain adequate loans, etc. on affordable terms. .
When the machine tool industry will pick up is more difficult to predict. It is feared that the machine tool industry will have to work hard to overcome the financial crisis in the next few weeks or even several months. This is not only true for German manufacturers, but also for the machine tools industry in other countries.
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