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German Machinery Makers Are Vigilant to China

Posted: 07/13/2014 09:07:46   Edited: 07/13/2014 09:07:46  Clicks: 1839
German machinery makers are taking steps to deal with growing competition from China. Festge, the chairman of German Machinery and Equipment Manufacturing League, said last week, “We must remain vigilant at all times. Enterprises must widen the gaps of competition from Asia through innovation.” He insisted that German companies must always maintain their advantage. At the same time, the number of mid and low price products should be increased to further expand local production. This chairman believes that there won't appear large-scale M&A trend among mechanical manufacturing industry between Germany and China.
Three-quarters of German machinery products are exported. China, the United States, France and Russia are the biggest markets. However, China's machinery products in the world market have been stronger over the years. A survey according to the German Machinery and Equipment Manufacturing League shows that China’s exported machinery had surpassed Japan in 2012. China has become the third largest machinery exporter in the world, occupying 11% of market share. German products in the international market accounted for 16.1%, and it was the world's largest exporter of machinery and equipment. The United States occupies 12.1%, ranking at the second place.
Festge said German machinery makers usually spend 4.5% of profits for the investment in research and development of new products and technology improvement. But the quality alone cannot guarantee successful occupation of international market. He said, “We have to find the right combination to provide all levels of customers with products they can afford.” This goal can be achieved by cooperation of local manufacturers. In addition, the manufacturers can also set up protection wall for their high-end products by offering simple mechanical equipments.
67-year-old Festge just took over the chairman of German Machinery and Equipment Manufacturing League last October. The league represents the interests of the approximately 3100 companies in Germany. German machinery manufacturing industry mostly consists of small and medium-sized enterprises, with 1 million employees in total and annual turnover of 200 billion Euros. Thyssen krupp, GEA, DMG MORI and other large listed companies are all members of the union.
German Machinery Makers Are Vigilant to China - DE

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