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Engineering Industry Reports and Surveys
News Release from: Manufacturing Technologies Association
Edited by the Engineeringtalk Editorial
Team on 20 November 2003
Machine tool sector set for recovery
The UK machine tool sector is set for a significant recovery in 2004, according to the latest MTA survey.
The Manufacturing Technologies Association recently held its annual forecasting seminar for members, where new forecasts for the UK machine tool sector were released The forecasts are prepared by Oxford Economic Forecasting (OEF), and include an in-depth look at various factors affecting the market that MTA members use to plan their business strategies
This article was originally published on Engineeringtalk on 1 Dec 2005 at 8.00am (UK)
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The main points of the forecast were that, after a decline of around 13% in demand in the UK this year, it is expected that 2004 will see a recovery in the region of 16%, with an acceleration in 2005.
This is driven by a general improvement in the business cycle and an increase in investment; some key leading indicators, especially for corporate profitability and financial balances point to a positive climate for investment during 2004.
However, despite the apparently high growth rates over the next 2 to 3 years, the overall levels of the market will still be significantly below even the "mini-peak" in 2000, let alone the much higher level in the mid-1990s.
Overseas, the US market is expected to continue the slow but steady recovery that is already underway.
However, because of the very low levels that this has reached, some of the percentage growth figures look quite large and the expectation of growth of more than 20% in UK exports to the USA in 2004 still leaves the total value well below what might be considered "normal" levels.
With demand in most of the EU countries expected to remain weak for a few months at least, there will not be much pick up in exports there for 2004, leaving the rest of the world as the most promising area for export growth.
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