The production of industrial machinery in Europe has experienced consistent growth since 2002, and total output is forecast to surpass 345 billion (about $457 billion) by 2010. This growth, according to statistics from IMS Research, is attributed mainly to strong demand for machinery from emerging markets in India, China, and South America, as well as continued economic expansion in Europe and the U.S.
2005 was a record year for industrial machinery production in Europe, with a total production value of close to 294 billion, says IMS. Germany and Italy dominated the sector, together producing more than 45% of the regions total output. Austria, Turkey and Eastern European countries such as Poland and Russia experienced the fastest growth in machinery production since 2002, expanding more than 5.6% per year. Overall, machinery production in Europe has increased by an average of 3.2% over the past four years.
Food, beverage and tobacco machinery, material-handling equipment, and woodworking machinery were the areas with the highest growth since 2002. Paper and textile machinery production grew at the slowest pace, increasing by an average of 2.2% per year over the past four years.
In recent years, production of machinery that require complex manufacturing processes, or high technical expertise, have been thriving in Europe, reports market research analyst Alex Chausovsky. This can be seen in the case of machine tools and robotics machinery production growth. On the other hand, machine types that are less technically demanding to build have suffered, with increased competition emerging from low-cost regions such as China and India.