Recent machine tool statistical reports from North America and Europe and news from some builders about new major contracts are clear indicators that the machine tool market has not only made a recovery from the past recession, but is roaring ahead.

In the US, manufacturing technology consumption has jumped an impressive 57.6 per cent according to the latest (March 2011) data from the American Machine Tool Distributors’ Association and The Association for Manufacturing Technology. The manufacturing technology consumption report is a leading indicator of the general health of the industry in North America.

Recovery in Canada

In Canada, the Canadian Machine Tool Distributors’ Association does not release its full statistical machine tool data to the public, but Peter Turton, CMTDA’s executive director, and John Manley, CMTDA’s current president (he is also president of Machine Tool Solutions, Toronto), say a robust recovery appears to be underway.

“Machine tool orders have seen a significant recovery,” says Manley. Orders are up 110 per cent for metal cutting and 160 per cent for metal forming year-over-year March 2010-March 2011.

“While we were coming from a pretty low level after the recession, these numbers are still fairly remarkable.”

Most machine tool categories showed gains, with the exception of EDM machines, which saw a drop in orders. Interestingly, perhaps a sign that manufacturers in Canada are gearing up to ensure their competitiveness, multi-tasking lathes and multi-axis vertical machining centres saw the biggest uptake in units and values, according to CMTDA. Average machine tool order sizes varied from more than $500,000 for horizontal machining centres to under $100,000, from CMMs.

In metal fabricating, laser cutting machines and press brakes had the highest numbers in units and values. Average machine tool order sizes varied from more than $600,000 for profile laser cutting to under $50,000 for tube benders.

Massive upturn in global machine tool markets

The numbers from some other global machine tool markets in Europe and Asia are incredible. The machine tool industry in these regions is booming.

One of the most remarkable growth areas is Germany. In the first quarter of 2011, orders in the German machine tool industry saw a whopping 130 per cent increase over the same period in 2010. Orders from the domestic market were up 127 per cent, while demand from offshore was up 132 per cent.

“The sector has picked up speed much faster and more vigorously than we anticipated back in the autumn”, reports Dr. Wilfried Schäfer, executive director of the German Machine Tool Builders’ Association (VDW), based in Frankfurt. This, he continued, is now showing up spectacularly in the sales figures, with a steep rise of 45 per cent in the year’s first quarter. The results in order bookings are rapidly approaching the all-time high of 2007, but sales are as yet a good tenth below the peak level of 2008, adds Schäfer.

Italy also saw an increase in machine tool orders, although it was not the dramatic increase experience in Germany. Machine tool orders in the first quarter of 2011 saw a 19.1 per cent increase compared to the same period last year. Unlike Germany though where domestic and offshore demand was almost evenly split, growth for the Italian machine tool sector was primarily in foreign markets, which saw a growth of 32.7 per cent compared to the same quarter in 2010.