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NewsDesk: Global Demand for Machines Expected to Double

High global demand for machines in a variety of manufacturing sectors, including automotive and packaging, will push the industrial machinery market to new heights during the next five years, highlighted by a doubling of growth this year, according to a new report from IHS Technology (Englewood, CO).

As economic conditions continue to improve worldwide, demand for machines in sectors such as agriculture, packaging, materials handling and machine tools will push revenues to $1.6 trillion this year, up from $1.5 trillion in 2013. This represents annual growth of 6.3%, more than twice the 2.9% increase seen in 2013.

Strong growth is expected to continue for the next four years, with revenue rising to $2.0 trillion by 2018. During this period, the machinery market’s annual growth rate will remain quite impressive, averaging between 5% and 6%.

“The improving economic outlook is a key factor in the strong growth of machinery in the coming years,” said Andrew Robertson, senior analyst for industrial automation at IHS. “The growing populations and the expanding middle classes in developing countries are generating more disposable income. This translates into increased demand across a vast number of sectors.”

Sales growth for industrial machines in 2014 is being driven by a number of factors.

First, higher demand for cars worldwide is spurring the requirement for more spending on tools and robotics in the automotive business, as well as the rubber and plastics segments. Meanwhile, an increase in the standard of living and growing spending on nutrition will benefit the food and packaging machinery sectors.

Furthermore, rising spending on technology products will boost the demand for robotics, semiconductor equipment, mining, and oil and gas machinery.

Source: IHS, April 2014

At the same time, increased demand for housing, infrastructure and commercial buildings is benefiting the construction equipment sectors. Moreover, social awareness of green technologies is resulting in higher demand for industrial machines in photovoltaics (PV) and in wind turbines.

The growth of the machinery market represents a welcome change from just two years ago when not every region performed well. The Americas prospered in 2012, boosted by a significant government investment that caused machinery production revenue to grow by 6.5%. In 2013, machinery production growth in the Americas slowed to 2.0%, but still fared better than some of the other regions.

In the Asia-Pacific region, however, growth slowed to only 3.5%. A majority of this slowdown came from China, where production remained nearly flat because of overcapacity.

Meanwhile, Europe struggled as a result of the economic problems persisting throughout the region, and machinery production revenue declined by 5.6% in 2012, dragging down the entire global market. Europe increased output last year, but only by 1.1%. ME

US Manufacturing Growth Continues

Economic activity in the US manufacturing sector expanded in March for the 10th consecutive month, while the overall economy grew for the 58th consecutive month, according to the Manufacturing ISM Report on Business released on April 1.

The March PMI registered 53.7%, an increase of 0.5 percentage point from February’s reading of 53.2%.

The ISM report is based on a survey of purchasing and supply executives, and readings below 50 indicate contraction, while those above 50 indicate expansion.

Source: Institute for Supply Management

The New Orders Index registered 55.1%, an increase of 0.6 percentage point from February’s reading of 54.5%. The Production Index registered 55.9%, a substantial increase of 7.7 percentage points compared to February’s reading of 48.2%. Employment grew for the ninth consecutive month, but at a lower rate by 1.2 percentage points, registering 51.1% compared to February’s reading of 52.3%.

“Several comments from the panel reflect favorable demand and good business conditions, with some lingering concerns about the particularly adverse weather conditions across the country,” said Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management Manufacturing Business Survey Committee.

For more information, visit ME

Haas Hits Milestone

Haas Automation Inc., (Oxnard, CA) is pleased to announce another major milestone in the company’s history as one of the world’s leading machine tool builders—the production and installation of the 150,000th Haas CNC machine.

The 150,000th machine—a DS-30SSY dual-spindle turning center with Y axis—rolled off the Haas production line Jan. 19, and was installed at Swedish company Claesson Engineering in March, following a special handing-over ceremony at the Manufacturing & Automation Expo (MAX) in Stockholm, Sweden.

“Installation of the 150,000th machine is a very special occasion for Haas Automation,” said Alain Reynvoet, managing director, Haas Automation Europe. ME

Workforce Development

Students across the country are busy building robots designed for destruction in preparation for a fight to the end against rival robots as part of the National Tooling & Machining Association (NTMA) National Robotics League, a unique program designed to promote careers in manufacturing. NRL is the only league formalizing ties between competitor teams and manufacturing partners. For more information, visit

A unique scholarship program was unveiled in late March that matches Toyota’s need for mechanical engineers with that of top incoming students at Kentucky State University in Frankfort. The Toyota Engineering Scholarship program—made possible via a five-year, $375,000 grant from the automaker—will tie in directly with its manufacturing operations in Georgetown, KY, 21 miles from Frankfort.  Through this program, Toyota will develop a deeper and richer pipeline to employ students with engineering degrees.

Mergers & Acquisitions

Samco Machinery (Toronto, ON) has announced an alliance with VAPTECH, a Bulgarian-based worldwide supplier of system solutions for the metal forming industry, specifically designing and manufacturing mechanical and hydraulic presses, biomass processing equipment and complete manufacturing lines with automation.

3D Systems (Rock Hill, SC) announced April 16 that it has entered into a definitive agreement to acquire Robtec (Sao Paulo, Brazil). Robtec is the largest Latin-American additive manufacturing service bureau and the leading 3D printing and scanning products distributor in the region.

AnnouncementsTerry Derrico

United Grinding North America Inc. (Miamisburg, OH) on March 21 announced that current President and CEO, Rodger Pinney, has been elected as vice chairman of the company’s board of directors in conjunction with his planned retirement on April 1, 2014. Terry Derrico will join United Grinding North America, Inc. as its new president and CEO and assume complete responsibility for leading the company’s strategic, tactical, operational, and administrative functions in North America. Derrico will report directly to Stephan Nell, CEO UNITED GRINDING Group AG.

The ExOne Co. (North Huntingdon, PA) reported that revenue grew by $10.8 million in 2013, to $39.5 million, driven primarily by machine sales as well as growth in its production service center. While gross profit was $15.6 million, the company reported a full-year loss of $5.7 million in 2013, compared with a loss of $8.1 million in 2012.

5ME (Cincinnati, OH) and Memex Automation (Burlington, ON) have been named a Partner in THINC by Okuma America, joining more than 40 technology leaders focused on developing specialized manufacturing systems to increase the competitiveness of Okuma’s customers. The consortium works to solve problems and explore new productivity ideas for real-world manufacturers.

ESAB Welding & Cutting Products (Florence, SC) has launched its newly redesigned website for North America:


Mfg4, an event produced by SME, is returning to the Connecticut Convention Center in Hartford, CT, May 6–8. Manufacturing professionals from aerospace, defense (including arms), medical and MicroManufacturing industries will come together to gain knowledge, network, collaborate and share solutions at Mfg4. Industry leaders are provided the opportunity to explore in-depth innovative applications and new cutting-edge technologies that are improving the medical industry. For more information about registering, attending or exhibiting at Mfg4, please visit or call 800.733.4763.

Methods Machine Tools Inc., (Sudbury, MA), a leading supplier of innovative precision machine tools, automation and accessories, plans to host Metal Storm 2014, an open house event that will feature more than 50 machines. It will take place from 9 a.m. to 5 p.m. June 11 and 12 at the company’s recently expanded and renovated headquarters and corporate technology center at 71 Union Avenue in Sudbury, MA.  For more information, visit

Cox7 will be broadcasting twelve 30-minute episodes of the Edge Factor Live, which demonstrates manufacturing technology at work, starting on July 27 at 6 p.m. and immediately follow with a re-airing of the full season. Additionally, the episodes will be available On DEMAND Cox Channel 1890, and via

NewsDesk is edited by Editor-in-Chief Sarah A. Webster. Please email NewsDesk submissions to


This article was first published in the May 2014 edition of Manufacturing Engineering magazine. Click here for PDF.

Published Date : 5/1/2014

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