Machine production set to rebound

IMS Research's report indicates machinery production revenues are expected to rebound in 2011 and continue to grow through 2014.

11/20/2011


This is set to be a record year for worldwide machinery production, recording aggregate 10.2 percentage growth, according to IMS Research. The report titled, “Machine Production Yearbook – 2011” further points to the fact that this trend is expected to continue through the forecast period to 2014.

The machine sector was amongst the hardest hit by the economic downturn, and given the long-lead nature of the business – it was also one of the last to suffer. However, according to the latest report from IMS Research, worldwide production of machinery is set to eclipse its previous record, set back in 2008.

“The latest indicators are that growth is slowing slightly from the highs seen last year – hardly surprising when you consider the magnitude of the bounce back seen in 2010 – but there still appears to be solid growth on last year. This should of course be encouraging news, however, when output is considered on a regional basis, the contrast is striking,” says Andrew Robertson, Market Analyst, IMS Research.

Output from Asia-Pacific declined in 2009, but not to the extent as in Europe and the Americas; and whilst Japan’s output plunged in 2009, China and India continued to see growth. But helped by tremendous growth in Japan in 2010, Asia Pacific comfortably surpassed its 2008 levels last year, and looks set to continue its strong performance.

In the Americas, where machinery output is still dominated by North America, the decline in 2009 was more severe, and the subsequent recovery more gradual. That said, the recovery has been such that 2011 is predicted to be a record year for machinery production.

Meanwhile, the 2009 downturn in Europe was more severe than in the other two regions, and recovery has been more varied. Although Germany’s upturn has been fairly strong, the plight of others such as Spain, Greece and Portugal has been widely documented. As such, IMS Research does not anticipate that machinery production in Europe will surpass the pre-recession level until after next year.

The figure below illustrates the varying performance of the three nations which have traditionally dominated the machinery sector. Whereas machinery production in Germany and the US recovers to set record-breaking years relatively quickly after the downturn, the outlook in Japan is in stark contrast.

Graph explaining current and projected revenues for machinery production in the U.S., Germany, and Japan, three of the biggest manufacturing countries in the world. Courtesy: IMS Research

The Japanese industry plummeted in 2009, and at present the outlook is still uncertain. As such, even with growth in 2010 of almost 40 percent, production is still not expected to recover to pre-recession levels before 2015.

“Although no industry is immune from the effects of the current economic uncertainty, machinery output, for the time being at least, appears to be faring better than the markets and economy in general. Whether it will continue to do so is yet to be seen,” Robertson adds.

www.imsresearch.com 

IMS Research

- Edited by Chris Vavra, Control Engineering, www.controleng.com 



No comments
Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
2014 Product of the Year finalists: Vote now; Boiler systems; Indirect cooling; Integrating lighting, HVAC
High-performance buildings; Building envelope and integration; Electrical, HVAC system integration; Smoke control systems; Using BAS for M&V
Pressure piping systems: Designing with ASME; Lab ventilation; Lighting controls; Reduce energy use with VFDs
Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Consulting-Specifying Engineer case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.

Protecting standby generators for mission critical facilities; Selecting energy-efficient transformers; Integrating power monitoring systems; Mitigating harmonics in electrical systems
Commissioning electrical systems in mission critical facilities; Anticipating the Smart Grid; Mitigating arc flash hazards in medium-voltage switchgear; Comparing generator sizing software
Integrating BAS, electrical systems; Electrical system flexibility; Hospital electrical distribution; Electrical system grounding
As brand protection manager for Eaton’s Electrical Sector, Tom Grace oversees counterfeit awareness...
Amara Rozgus is chief editor and content manager of Consulting-Specifier Engineer magazine.
IEEE power industry experts bring their combined experience in the electrical power industry...
Michael Heinsdorf, P.E., LEED AP, CDT is an Engineering Specification Writer at ARCOM MasterSpec.