Machine tools "Made in Germany": still the No. 1 export hit?

GERMANY. German technology is still in great demand abroad - this also applies to machine tools. "Made in Germany" is still a seal of quality that is respected in many countries and is by no means seen as an empty promise of quality. Qualified specialists and researchers from many directions are working to ensure that German machine tools remain products of an innovative leader in the future. However, the competition from the Far East is hot on Germany's heels and it has to work very hard not to jeopardize its good reputation.

Highly demanded machines from Germany

In addition to internal combustion engines, machine tools for metalworking, such as lathes, milling machines, machining centers and machines for forestry and agriculture are particularly in demand. China is by far the largest customer for German machine tools, followed closely by the USA, Italy and France. Other important customers are Mexico, Poland, Switzerland, Austria and Great Britain.

Why are German machine tools so popular abroad?

Importers appreciate the excellent machine concepts of German manufacturers, who are just as competent when it comes to advice and support. They also appreciate the flexibility in production and the extraordinarily high product quality. The largest machine tools work continuously day and night and process large quantities. But the small, very specifically designed machine tools are also in great demand. After the slump in the corona crisis, the export figures have risen significantly again and will continue to rise. Despite the chip crisis, Bosch is expanding its business, and many others are doing the same as the traditional company.

Germany's status as export world champion is in jeopardy

However, Germany must “stay on the ball” in order not to jeopardize its supremacy. In the meantime, China has replaced Germany as the world champion exporter of machines and systems and will continue to expand its lead. The VDMA (Association of German Machine and Plant Builders) presented a study according to which German machine builders exported goods worth around €1.05 trillion in 2020. Exports from China accounted for 15.8% of all world exports. In the same period, however, Germany only exported machines worth €1.05 trillion, which corresponds to a share of only 15.5%. In the year before, Germany was still 1.4% ahead of China.

What does Germany have to do so that it is not left behind?

The most important lever of a sustainable economy is innovative strength. If Germany wants to remain number one when it comes to exports, significantly more innovations are required. Companies themselves complain about technical backlogs as well as the framework conditions, which tend to hinder rather than promote. In 2021, the Bertelsmann Foundation conducted a study that revealed that German companies invest far too little in knowledge capital. The gap is particularly noticeable in the areas of artificial intelligence, big data and digitization. While most executives and CEOs understand the importance of advances in digitization, they acknowledge the technological lag. More than half of those surveyed attest that German companies have a lot of catching up to do in the area of ​​digitization. Very few are of the opinion that their own company takes its employees along on the path to better and more digitization. The bottom line is that much less is invested in knowledge capital in Germany than in other industrialized countries. Compared to France, Germany is 15% behind, and there are also clear deficits in the degree of modernity of services and industry. So Germany has a lot of catching up to do. So that the goals set can be achieved, one cannot avoid investing more money in research and the training of qualified employees.

What innovations are there in German machine tool construction?

Machine manufacturers can only survive if they deliver economical complete solutions and adapt very precisely to customer requirements. The current innovations not only affect the machines themselves, but the entire process environment. High machine availability is also essential. For example, integrated workpiece loading devices to increase productivity, innovative coolants to save energy (e.g. carbon dioxide), optimized access options for maintenance, reduced vibrations, more ergonomics, more precision, better surface quality, higher adaptability and much more are in demand.

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