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Production and sales in German machinery industry 2008 - 2015 Feb

Production of German machinery industry swinging again into sideways movement after having outperformed pre-crisis level

Up to February 2015 data for production and sales of the German machinery industry are represented from the Federal Statistical Office. We put these data into the context since the outbreak of the world economic crisis 2008/2009. That makes it easier to answer the question, in which situation the machinery industry is and which development for the future will be probable.

Production of machinery industry in December 2014 above pre-crisis level, then again sideways movement

Update April 9th, 2015 - Production of the German machinery industry has exceeded its pre-crisis level with 135.6 index points in December 2014 for the first time since the outbreak of the world economic crisis 2008/2009.


The course of production is still following a sideways movement since 2011 according to our opinion.

Production German machinery industry from 2008 to 2015 February.


The reasons are the repeated decrease of production in January 2015 to 94.5 index points with a slight increase in February to 104.4 index points, the horizontal trend in the yearly average (dashed line) as well as the situation on the important export markets of the German machinery industry.

Sales too swinging into the sideways movement after peak in December 2014

Sales have been showing the same type of the development as production. However, two differences are showing up.

 

The sideways movement started 2012 and not as with production in 2011.


And sales exceeded their pre-crisis level of 2008 (137.0) six times from 2010 to 2014. The crucial point according to our opinion is however that the pre-crisis level was not exceeded in a stable manner.

Sales of German machinery industry from 2008 to 2015 February.

Is an end of the sideways moving probable?

Sideways moving is the probable prospect due to a structural change in the export countries

The analysis of the worldwide crisis overcoming from 2008 to 2014 shows that the usual general upward business trend after a crisis failed. In its place the worldwide industrial production is showing a coexistence, a close relation of growth, stagnation and setbacks to each other. We have characterized this new phenomenon as a structural change in the process of crisis overcoming.


This structural change is coining the course of the industrial production in the industrialized countries and the BRIC countries. Industrial production in the MIST countries is in a general upward business trend.

 

The structural change with its close relation of growth, stagnation and setbacks to each other in the world economy is also limiting the opportunities on the world market for the German machinery industry keeping it caught in a sideways range.

Sideways movement furthe probable because export shares lagging behind industrial production in export countries

Comparing export shares of the German machinery industry with the course of industrial production in those export countries that absorb 80% of the machine exports from Germany, it becomes apparent that the export shares are lagging behind industrial production in the export countries apart from the USA.


The Quest Trend Magazine has raised the question about a changing demand structure for machines as a possible reason. But the fact alone that export shares do not climb together with increasing industrial production has an limiting impact on the development of production and sales of the German machinery industry.

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