German Machine Tool Industry Predicts a 5-Percent Growth in Production Output in 2012

German Machine Tool Builders' Association (VDW) predicts a 5-percent growth in production output in 2012, according to a press release issued Friday. "The German machine tool industry is back to its full vigor following the crisis, and finished last year with record figures," said VDW. The sector realized a turnover of 13.1 billion euros (about 17.5 billion U.S. dollars) in 2011, registering a record high growth of 33 percent, said VDW's Chairman Martin Kapp. Order bookings for German machine tools rose by 45 percent with the order backlog standing at 9.5 months in October 2011 and extending well into the current year. "This offers a good cushion for the ongoing year," said Kapp. China has been identified as the most important market, with a 40 percent increase in sales revenues in 2011, in contrast with the 38 percent rise in domestic market sales. "The high-growth sales markets are shifting rapidly towards Asia," said VDW. Ten years ago the sector was selling 61 percent of its exports in Europe, a quarter in America and a mere 11 percent in Asia, but the proportions today are quite the reverse. In 2011, 42 percent went to Europe, another 42 percent to Asia, and just 15 percent to America. Conversely, Kapp warned demand is slowing down. Although "the available data give no grounds for expecting international investment activity to suddenly slump, the German machine tool industry is at a high level on all key statistics. For this reason alone, growth is going to slow down in the ongoing year." In the meantime, the sector continues to provide jobs, employing 67800 staff in November 2011, 4.4 percent more than it did the year before. Source: businessghana.com