Machine Production Set to Rebound to Record Revenue in 2011, and Rise Through 2014, According to IMS Research
Date: 07 October 2011

This is set to be a record year for worldwide machinery production, recording aggregate 10.2 percentage growth, according to IMS Research, the leading independent provider of market research and consultancy to the global electronics industry. The report titled, “Machine Production Yearbook – 2011” further points to the fact that this trend is forecasted 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.

 

 

 

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.

Editors Note :

United States
Wes Rogers Tel: +1 912 506 0869 wrogers@greenfieldscommunications.com

Europe
Clive Savage Tel: +44 (0) 07824 706 402 clive@greenfieldscommunications.com

About IHS Inc. (www.ihs.com)

IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today’s business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS employs more than 5,600 people in more than 30 countries around the world.

About IMS Research:

IMS Research is a leading independent supplier of market research and consultancy to the global electronics industry, offering syndicated market studies, custom research and consultancy services. Clients include most of the household names in the industry. IMS Research has offices in Europe, the US, China, Taiwan, South Korea, and Japan. To find out more, contact IMS Research: enquiries@imsresearch.com; T: +44 (0) 1933 402255; http://imsresearch.com

Related Reports

Machinery Production Yearbook – Americas – 2011

Machinery Production Yearbook – Asia Pacific – 2011

Machinery Production Yearbook – China – 2011

Machinery Production Yearbook – Europe – 2011

Machinery Production Yearbook – World – 2011