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Key Trends For Growth In Southeast Asia

Key Trends For Growth In Southeast Asia

With 2017 looking to be a year of steady manufacturing growth for Southeast Asia, machine tool makers that form the backbone of most industry development would do well to take notice. By Jonathan Chou 

Machine tools are part and parcel of manufacturing, particularly in segments such as automobiles, aerospace, defence, and railways. The machine tool market is thus closely linked with the ups and downs of each specific industry.

With the Nikkei ASEAN Manufacturing Purchasing Managers’ Index (PMI) showing Southeast Asia ticking upwards to 50 in January this year as compared to 49.4 in December 2016, machine tool makers could benefit from identifying upcoming growth areas in the region.

Economy Boosted By Manufacturing: Singapore

Singapore was estimated to consume approximately US$310 million in machine tools in 2016, according to Gardner. This represents a substantial amount of spending, and even with its small geographic size, the country is projected to be the 14th top market worldwide for metalworking equipment in 2016-2017, as said by the International Trade Administration.

The country’s gross domestic product growth rate performed above expectations, expanding by 2.9 percent year-on-year in the last three months of 2016, higher than 1.2 percent in the previous period and above initial estimates of a 1.8 percent growth. It is the highest expansion since the third quarter of 2014 and was mainly boosted by manufacturing, according to figures by Trade Economics.

The Singapore economy mainly relies on purchasing of intermediate goods and exporting of high-value added products. Machinery and equipment take up 46 percent of total exports, and opportunities in the country are thus mainly focussed on the high-end precision engineering sector.

Indonesia Setting Sights On The Automotive Sector

The Indonesian government has identified vehicle manufacturing and assembly as a key industry for development in the next five years, in hopes to become Southeast Asia’s largest centre for vehicle assembly.

The nation also promoted local manufacturing of auto parts and components, with forging, casting, and stamping processes being the main areas to boost growth in production of assorted metal goods.

In 2016, Indonesia purchased a total of US$76.88 million worth of lathes and turning machines. As for machining centres, Indonesia imported a total of US$62.22 million during the same period, according to the Taiwan External Trade Development Council, which also added that Taiwan has remained one of the major suppliers of machine tools to the Indonesia market in the past five years.

With the government releasing economic policy packages designed to attract fresh investments and spur market activities (of which 14 had been released so far since September 2015), the automotive sector in Indonesia seems to be shaping up for growth.

Improving Investor Climate: Vietnam

For the past few years, Vietnam has been emerging as an attractive foreign investment destination. Manufacturing and high-tech industries constitute a fast growing part of the economy, and the country is also one of the largest oil producers in the region.

According to the German Embassy in Hanoi, many major German companies, which are operating in various fields such as automobile, energy and industrial machinery in Vietnam, plan to expand their presence in Vietnam to take advantage of the improved investment climate and signed free trade agreements.

This includes companies such as Marquardt Group which arrived in Da Nang to discuss with municipal authorities on the production of high-tech automobile equipment and components. The project would have an estimated investment of about US$39 to 50 million and generate jobs for some 500 to 600 local workers.

Promising Signs

The global machine tools market is predicted to exceed US$120 billion by 2020, growing at a compound annual growth rate of more than six percent and a large portion of this growth will take place in Asia, according to Technavio.

Anju Ajaykumar, lead analyst at Technavio for tools and components research observed that industrial sectors such as automotive, industrial machinery as well as aerospace and defence are showing “signs of positive growth which will augur well for the growth of the machine tools market during the forecast period (2016-2020).”

The promising signs of manufacturing growth in Southeast Asia this year could very well indicate an associated uptick in orders and purchases in the machine tools sector as well.

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Digitisation Of Production In Industry 4.0

Digitisation of Production In Industry 4.0

How are machine tool makers incorporating Industry 4.0 in their machining centres and beyond? By Michael E Neumann

Machine tool manufacturer Industry 4.0 Heller has been providing a range of products for decades, mainly comprising four and five-axis machining centres, mill/turning centres and flexible manufacturing systems.

In terms of Industry 4.0, the company is looking at even higher machine productivity and supporting consistent engineering chains. This also includes looking at supplementary machine functions, on-demand services and enhanced service capabilities.

Reducing Cycle Times With machine tool Industry 4.0

The company hopes to illustrate the importance of ease of operation, customised workpiece manufacturing and enhanced evaluation of existing data on three main fronts:

  1. The Industry 4.0 Heller4 Operation is an operator-oriented user interface for the company’s machines. The use of touch controls at the tool/workpiece loading station enables Industry 4.0 robust operation. The new operator panel also allows specific programs from web environments to be run.
  2. Secondly, Heller4 Services comprises of digital services. The Services Interface focusses on the transparency of Industry 4.0 manufacturing and maintenance processes. The module forms the basis for evaluations and statistics, thus providing support in reducing machine downtimes. Additionally, the visualisation of specific information, including status displays of axes, spindles or other assemblies, enables users to determine where and to take preventive measures in order to avoid unscheduled downtimes.
  3. Finally, Heller4 Performance comprises the machine analysis for process and performance optimisation, time-synchronous extraction of real-time data into the internet as well as evaluation and graphical display, using an external cloud platform.

All this is aimed at reducing the customer’s cycle times, and thus workpiece costs, by providing greater productivity through greater ease of use of the machine, optimal integration into the network and expanded functionalities and service possibilities.

Additionally, flexible integration into existing production systems is also a focus, with new machining centres enabling continued use of existing tools from other Heller machines and the use of manual clamping fixtures. Adaptation of hydraulically operated clamping fixtures is also possible.

Active Evaluation

The company also founded a new business and technologies development division to explore new technologies in 2010, such as ways to reduce CO2 emissions and fuel consumption of combustion engines, electromobility, lightweight construction and Industry 4.0 machine tool.

In collaboration with a team from application development, application assembly and sales, the division developed the CylinderBoreCoating (CBC) process, a technology for the coating of cylinder bores of aluminium crankcases using electric arc wire spraying.

The company states that the coating results in a 50 percent reduction in friction forces between the cylinder and the piston ring, enabling a more compact crankcase design and significantly reduced cylinder bore spacing. This results in a reduction in engine size and weight savings.

Reduce Idle Times

The division also developed and launched solutions in response to Industry 4.0, called Heller4Industry. A feature would be tool provisioning. Tool magazines are usually loaded in a manner that provides optimal storage capacity. However, this often means the tool access sequence is different from the sequence of machining operations. The distance from the tool to the spindle has a significant influence on how long the tool change takes.

To reduce these idle times, workpiece details to be optimised can be selected from pallet management and transferred to the cloud. Both tool change times and tool idle times are then analysed and evaluated in view of the sorting order, providing the shortest idle times for the given workpiece and the machining operation. The CNC program for re-sorting the tool magazine is then generated in the cloud and provided to the machine.

Integrating Downstream Machining

Another current project is Industry 4.0 metal additive manufacturing. The experts are working on a cost-effective process machine tool, providing high material application rates in an industrial environment supplemented by downstream machining.

The Industry 4.0 idea is to use this technology for making additions to the component whilst integrating downstream machining operations in order to achieve the required drawing specifications. As with CBC, the goal is to find solutions for relevant applications in series production for the general machine and automotive industry.

Other developments of new business and technologies development division focus on light-weight construction. The demand for lighter vehicles inevitably requires the use of light metals and carbon fibre-based plastics, where research is underway on the most appropriate machining processes.

Flexible integration into existing production systems should be a focus for manufacturers Industry 4.0.

Flexible integration into existing production systems should be a focus for manufacturers.

Research is underway for the most appropriate machining processes in light-weight automotive construction machine tool Industry 4.0

Research is underway for the most appropriate Industry 4.0 machining processes in light-weight automotive construction.

To reduce idle times, workpiece details can be selected from pallet management machine tool and transferred to the cloud Industry 4.0

To reduce idle times Industry 4.0, workpiece details can be selected from pallet management and transferred to the cloud.

Due to flexible complete machining on a 5-axis machining centre, machine tool costs can be reduced Industry 4.0.

Due to flexible complete machining on a 5-axis machining centre, costs can be reduced.

 

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Data-Driven Business Models For Machine Tool Manufacturers

Data-Driven Business Models For Machine Tool Manufacturers

An inquiry by the European Association of the Machine Tool Industries (CECIMO) shows that data-driven business models are high on the agenda of machine tool builders in Europe. Contributed by CECIMO

The annual CECIMO general assembly that took place in recently identified two trends that machine tool manufacturers are placing important emphasis on in the future:

  • Using data-driven business models.
  • Building a hybrid skills pipeline that merges ICT (information and communications technology) and production technologies.

New Business Models By Machine Tool Builders

A greater certainty on the right to access different types of data generated by machines would be a necessity for machine tool builders to tap into new business opportunities; During its general assembly meetings, the organisation conducted an inquiry with chief executive officers and owners of European machine tool companies and shared their findings.

For most of the companies that participated, data-driven business models will be most prioritised over the next 10 years, compared to other business models such as services based on in-house knowledge, product-as-a-service, and platform-based services. Majority of the machine tool builders find that understanding customers’ digital needs and cooperating with them are essential to develop new business models.

Hiring A Skilled Workforce

Half of the machine tool builders questioned said that launching new education programmes in Europe that merge ICT and production technologies is the most important policy pillar to underpin new business models, followed by future-proof and technology neutral regulations.

“Machine tool builders are increasingly facing difficulty in finding the workforce possessing knowledge and skills needed to apply digital solutions in the field of advanced manufacturing. In order to tackle this pressing challenge, public authorities at national and regional levels as well as education providers together with the industry should invest more in the design and delivery of a new education approach merging various disciplines including software programming and production technologies,” said Filip Geerts, CECIMO director general.

Future-Proof Principles

Existing European Union (EU) regulations on data has mainly focused on personal information protection and does not address the complexities of manufacturers in B2B sectors. Currently, access to raw data generated by machines is generally defined by contracts between suppliers and users. Nevertheless, working with bilateral contracts in the future may be challenging as the amount and type of data collected are increasing and data-driven business models are likely to grow through industrial data platforms and networks.

Under this light, future-proof and technology-neutral key principles and greater certainty on the right to access different types of data generated by machines along the value chain are a necessity for industrial actors to tap into new business opportunities. For a competitive and data-driven industrial base to happen, machine tool builders will need access to data derived from machines used by various customers along the value chain.

“Clear benefits of this access include increased productivity, safety, energy and resource-efficiency for the entire European industry, taking into account the fact that machine tools are a key enabler of the production of other industrial equipment and machinery across various sectors,” said Luigi Galdabini, CECIMO president.

Economic Situation And Outlook

In spite of the global economy’s weakening growth and high levels of uncertainty in international trade relations, the European machine tool industry continues to show signs of growth. European machine tool production increased its global market share in 2016 to exceed 40 percent. Investment in modern manufacturing equipment remains relatively low, but recovery of economic activity is visible and business confidence in Europe may support additional growth in investments.

All economic indicators from the destination markets point to a stable growth momentum. The European machine tool industry is estimated to export an amount of 18.7 billion euros (US$19.8 million). Exports to Asia are falling in line with local economic developments.

Exports to Russia are heavily impacted (falling 30 percent year-on-year) by the EU trade sanctions. Exports to the Americas are increasing due to investment into new or upgraded automotive plants in the US and Mexico. Domestic European consumption is supported by a resilient investment climate in Europe with ongoing investments into more efficient production equipment.

Quick Look At Europe’s Machine Tool Industry

European machine tool production grew to 24.2 billion euros in 2016.

Global market share exceeded 40 percent in 2016.

Exports will remain stable this year at 18.7 billion euros (US$19.8 million).

Filip Geerts, CECIMO director general, notes that machine tool builders are increasingly facing difficulty in finding a skilled workforce that possesses the knowledge needed to apply digital solutions in the field of advanced manufacturing

Filip Geerts, CECIMO director general, notes that machine tool builders are increasingly facing difficulty in finding a skilled workforce that possesses the knowledge needed to apply digital solutions in the field of advanced manufacturing

All Loaded Up! Machine Tool

All Loaded Up! Machine tool

Machine tool automation palletising systems allow for flexible loading around the clock. Contributed by Schunk

Once reserved for large production runs, automated loading and unloading of machine tools is now becoming more and more commonplace for small batches and individual parts. The goal is to reduce set-up times and enable round-the-clock production with low manpower requirements.

Above all, smooth interaction between clamping pallets, robot couplings, and palletising modules will become increasingly important due to the resulting boost in flexibility.

Starting Points

There are two basic starting points when it comes to the Machine tool automated machine loading. For large series, and also for very long machining times, automated workpiece change has proven to be of great benefit. In this case, workpieces are normally fitted directly onto a power chuck, such as a clamping block or a force-actuated multi-jaw chuck, by a robot or gantry.

For small and medium-sized series, automated clamping device replacement is more suitable. With quick-change pallet systems, clamping devices can be automatically mounted, positioned, and clamped to a reference value within seconds. Standardised palletising systems allow clamping devices to be replaced in a highly flexible way while ensuring a high degree of process stability.

In this case, workpieces and clamping devices are installed on clamping pallets, arranged in storage racks and successively transferred to the machining centre from the pallet storage rack. On the bottom of the pallets, there is a standardised interface to the quick-change pallet system.

Integral Components

Like an adapter, this interface links the machine to a wide range of workpieces. Not only that: Modern pallet systems also feature a side interface so that they can be connected to a robot or gantry in a way that ensures process stability. This makes them an integral component in machine tool automation, as they meet three key requirements: flexibility, precision, and cost-effectiveness.

Today’s most comprehensive and innovative range of modules for automated machine loading includes advanced clamping technology and gripping systems. Products range from quick-change pallet solutions for machine tools to standardised pallets and robot couplings to a wide variety of workpiece clamping devices in all shapes and sizes.

Schunk: Palletising Modules

The Schunk machine tool palletising module Vero-S NSA plus is a quick-change pallet solution for automated pallet changes. It has a flat design and provides a large amount of space in the machine room for workpieces and axis movements. It achieves pull-in forces up to 20,000 N and holding forces over 100,000 N.

These machine tool modules offer a precise hold, even in large-volume cutting operations, and if required, the palletising system can also be integrated directly into the machine table.

A positively driven airflow prevents shavings or dirt from impeding the automated changing process by cleaning the flat surfaces and the short taper. This allows the work surface of the pallet to remain chip-free and flat. Through dynamic pressure monitoring, all process steps can be monitored: module open, module close, and pallet presence.

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In With The New Radius Grinding Machines

In With The New Radius Grinding Machines

A higher level of technology allows radius grinding machines to have more powerful software, grinding of larger workpieces, while having easier maintenance. Contributed by Studer

Grinding machine specialist Studer is bringing three new radius internal cylindrical grinding machines to market. These are intended to replace theCT700 and CT900 models.

The main fields of application of the company’s new S121, S131 and S141 radius grinding machines are the manufacture of dies, especially in the packaging industry, where tungsten carbide and ceramic are primarily processed, and the production of hydraulic components such as axial pump pistons, guide plates and housings made of hardened steel, cast iron and copper.

Other fields are the production of complex workpieces with several tapers greater than 20 deg to 90 deg in a single clamping, where the main applications are in the watch and medical technology with extra-hard materials such as industrial ceramic, sapphire and tungsten carbide, as well as the manufacture of human implants for shoulders, knees and hips from ceramic and titanium.

Out With The Old

In the past, this range of parts was covered by the company’s universal internal cylindrical grinding machines CT750 and CT960. With its market entry, the new S121 radius grinding machine will now take over the range of applications of the CT750, while the S131 has been designed for the previous component range of the CT960.

New with the S141 radius grinding machine is that the machining of larger workpieces is also now possible:

  • The swing diameter above table is 250 mm for the S121, 300 mm for the S131 and 400 mm for the S141.
  • External diameters up to 160 mm can now be machined with an external grinding wheel 250 mm in diameter.
  • The maximum length of parts including clamping device is 300 mm for all three radius grinding machines
  • The maximum workpiece weight including clamping device is 100 kg.

There are good reasons why Studer is replacing the successful CT models, which translate into increased customer benefit.

First and foremost, a higher level of technology has been achieved with the new radius grinding machines. This is evident in the machine bed, which now comprises of Granitan and thus offers higher dampening levels, thermal stability and guidance accuracy. It is also reflected in the StuderGuide guideway and drive system with linear motors, which features high wear resistance, a long working life and high dynamics (interpolation possibility).

The main benefit which customers can derive from the new machines is the extended range of parts possible due to the larger size of the machine, and the new dressing concept which, thanks to the new arrangement on the B-axis (simultaneously swivelling workpiece table) is not only simpler, but also offers greater thermal stability and mechanical rigidity.

The fact that the new S121, S131 and S141 are now also manufactured according to the Thun modular principle also means non-variable parts in maintenance and service and consequently a higher availability of service technicians. It also means harmonisation of the components and, with the new design and improved ergonomics, an increase in the machine’s value.

Powerful Software

Special mention should be made of the StuderSIM software in regard to the new radius grinding machines. This software acts as an assistant, with which workpieces derived from a drawing can be completely defined, all necessary geometric data for the grinding cycles can be generated and with which the grinding process can be checked and visualised by means of simulation on a PC or on the machine.

It is complemented by hardware which features the previously mentioned Granitan machine bed and the StuderGuide guideway and drive system with linear motors. It also includes X and Z-axes in a cross-slide arrangement as well as a cross slide, which in the case of the S121 can either take one spindle, two spindles in parallel or two spindles on a hydraulic turret, and in the case of the S131 and S141 comes with a 4-position turret with direct drive.

The machines are also equipped with a workhead on a simultaneously swivelling B-axis, a dressing spindle or a fixed dresser on the B-axis and a measuring probe on the grinding head. Other new features are, finally, the enclosure and the control console in the Studer design.

The S121, S131 and S141 radius grinding machines differ from the universal cylindrical grinding machines of the same name in a number of technical details. The B-axes of the radius grinding machines are set up simultaneously and offer interpolation (from -60 deg to +90 deg), while the universal cylindrical grinding machines have a swivelling table, which can be positioned from -10 deg to +20 deg.

In addition, the spindles on the radius grinding machines are arranged at the rear of the turret, while this is the other way round on the cylindrical grinding machines: they are at the front. There are also differences in the dressing concept. The radius grinding machines have the dresser on the B-axis, while the cylindrical grinding machines are equipped with two swivelling dressers.

Last but not least, the S121 to S151 cylindrical grinding machines use the Studer operating system StuderWIN, while the new radius grinding machines use the StuderSIM operating system.

Market Segments

In addition to the S121, S131 and S141 new radius grinding machines, Studer’s platform of internal cylindrical grinding machines includes the simple S110 and S120 machines, the S121 to S151 universal internal grinding machines and the S122 production internal grinding machine.

Five machines have been replaced (S120, S145, S151, CT700, CT900), enabling four new market segments to be opened up. The S121 universal internal grinding machines are small machines for a large application range, the S122 production internal grinding machine is a machine for large component output and high availability, and the S141 and S151 universal internal grinding machines (700 and 1,300 mm) are machines for long workpieces.

Finally, a fourth market segment is opened up with the new S141 radius grinding machine for parts up to 400 mm in diameter.

4-position spindle turret (high-precision) with direct drive.

4-position spindle turret (high-precision) with direct drive.

Grinding internal tapers and radii on a die.

Grinding internal tapers and radii on a die.

 

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Industry 4.0: Is The Italian Machine Tool Industry Ready For The Challenge

Industry 4.0: Is The Italian Machine Tool Industry Ready For The Challenge

With new technologies and new skills Industry 4.0, Marco Taisch explains how enterprises in Italy will adapt.

Marco Taisch, professor of operations management and advanced and sustainable manufacturing at the School of Management of the Politecnico di Milano (Polytechnic University of Milan), is committed at the forefront with regards to the issue of Industry 4.0 and of IoT application to the manufacturing industry.

Q: Industry 4.0 is also defined as the “fourth industrial revolution”. What is the real meaning of “revolution” in this case?

Marcho Taisch (MT): One of the most revolutionary aspects of Industry 4.0 is, first of all, the impact it has had on the Italian economic stage. In a very short time, this new approach allowed the brining of the manufacturing industry back to the centre of attention of Italian institutions and economic players with an explosive effect, to say the least.

As far as the definition is concerned, many people consider Industry 4.0 as a real revolution; others see it as a pronounced effect.

In my opinion, Industry 4.0 combines technological innovation, which materialises in the spread of IoT technologies within factories, with a deep organisation change. In other words, the real revolution is primarily cultural: processes, tasks, professional profiles are changing and so are the 
required skills.

Q: If professional profiles are changing, should fundamental training processes be updated?

MT: Of course. There are very good universities capable of offering appropriate training to young people, enabling them to enter the work market and become real resources for enterprises.

In any case, technological training is made not only in polytechnic universities and other kinds of universities. It is important that even technical institutes should work on programmes, so that they may be as close as possible to the requirements of the industry. The industry is dramatically accelerating its development through digitalisation.

Q: Let’s come back to technologies and to the impact of Industry 4.0 on the Italian industry.

MT: Italy is the second-largest manufacturing country in Europe. To maintain and, if possible, even to improve this position, it is necessary not only to pass through a generic traditional innovation, but on the contrary, there must be a process of factory digitalisation. The aim is to facilitate and support the spread of the enterprises’ connectivity.

In practise, this means the creation of smart manufacturing, such as the production of products and services with the support of information technologies, and the creation of new business models. This is an intense programme which can, however, definitely be sustained by the Italian enterprises — provided that in the approach to this issue our peculiarities are respected.

Q: Could you please elaborate?

MT: The Italian manufacturing industry is recognised worldwide for its quality and strong customisation of product offerings. However, the “Made in Italy” characterisation is missing and we must enhance the importance of this part.

As a country we can work towards a digitalised manufacturing industry for advanced design, where the leading role is played by people who must adequately be trained and updated. We must concentrate on this aspect.

On the other hand, in some sectors, for example that of machinery and production systems, there is already a lot of innovative technology related to Industry 4.0, at least partially. The challenge is to increase the connectivity level, for example that of machines, so that they can increasingly collect, treat, process and allow data sharing — 
even remotely.

Q: Are enterprises able to do this by themselves?

MT: Starting from the assumption that the innovation level is not homogeneous, it is reasonable to suppose that some companies need assistance. For this purpose, universities, professional associations, territorial and extra-territorial institutions have already taken active steps to provide “information” in a wider sense, with particular attention given to SMEs.

Q: What are the real opportunities for SMEs to get informed?

MT: In a situation of communication overload, there is no denying that it may become difficult to be oriented. However, I would stress that there are numerous opportunities to reasonably debate and closely verify the possible applications of the new Industry 4.0 approach also with regard to our industry. Relying on qualified people considerably simplifies the selection process.

What are the opportunities to get information? Meetings, collection of annotated, specific information material specific studies are all appropriate. Demonstration events are also suitable, but it has to be stressed that in order to be most effective, such events must be set in the context and thus studied according to the enterprises’ requirements.

Q: As you are professor of the Manufacturing Group in the School of Management at the Politecnico di Milano, could you illustrate the topics to which you are presently committed and how you are working?

MT: The Manufacturing Group is a work group composed of about 40 people dealing with the analysis of issues concerning planning and management of manufacturing systems and operations. A particular focus is on energy efficiency and sustainability in the manufacturing industry and in the industrial services, on product and asset life-cycle management.

Q: Can we consider demonstration events?

MT: Exhibitions are, first of all, events to do business, thus they are events that companies really need. If they are organised with particular attention and by qualified operators, exhibition events can be real opportunities for updating, understanding and analysing in-depth topics that are not yet well-known.

In Italy we have a lot of good trade shows, even regarding Industry 4.0. Among them,  there is Motion And Mechatronics, whose philosophy, in my opinion is certainly innovative, because it combines the business aspect with specific thematic insight.

The trade show is addressed both to those who work, plan and build within a factory as well as those who manage it. This concept convinced me to accept the appointment as leader of the Technical-Scientific Committee for the event.

Q: A last question: what are your expectations for the future of Industry 4.0?

MT: I am very confident, because I see a harmonic teamwork between institutions, associations, and the research world. Now, the ball is passed to companies. The Industry 4.0 plan is an excellent opportunity for enterprises to take advantage of it, who can understand that purchasing technology is not enough, and that it is necessary also to work on skills.

 

Rising Italian Machine Tool Industry For 2017

The Italian machine tool, robot and automation manufacturing industry closed the year 2016 positively on various economic indicators, said Italian Machine Tool, Robots, Automation Systems And Ancillary Products Manufacturers’ Association (UCIMU) president Massimo Carboniero. He added that the year 2017 looked to be a year of further growth.

As evidenced by the preliminary year’s data processed by the Studies Department and Business Culture of UCIMU, production in 2016 increased to 5.48 billion euros (US$5.91 billion), recording a five percent upturn versus the previous year.

Uptick In Domestic Market

A definite positive trend was reported with regard to the deliveries by the Italian manufacturers in the domestic market, grown to US$2.38 billion, a rise of 20.5 percent compared with the previous year.

On the other hand, export decreased by 3.3 percent, reaching only US$3.54 billion, due to the weakness experienced in some major destination markets.

Based on the Italian National Institute for Statistic’s data processing, in the first nine months of the year, the main countries for export was as follows:

Image01

Consumption showed a positive trend with a 10.1 percent increase totalling US$3.97 billion. It is the third consecutive year of double-digit growth, showing signs of the recovery of the Italian market, which has also started again to invest in production technologies.

“The year 2016 was positive for the Italian machine tool industry, which contributes to the national GDP for almost eight billion euros (US$8.63 billion) considering, besides the production of machine tools, also the production of parts, tools and numerical controls not included in the total Italian machine tools”, Mr Carboniero said.

Interest In 2017

The year 2017 will also be positive for the Italian industry of the sector: according to the forecasts, there will be a growth for all the main economic indicators.

Production is predicted to rise four percent to US$6.15 billion, closer to the record-breaking value of US$6.47 billion registered in 2008.

Exports are expected to grow by 1.7 percent to attain US$3.59 billion. The positive trend of consumption will also go on: it should rise by 6.9 percent to US$4.25 billion, driving the deliveries of manufacturers.

“Now, with the Italian Ministry of Economic Development’s Industry 4.0 Plan which was included in the already-approved Budget Law 2017, the Italian government has given the country a well-structured and comprehensive programme of industrial policy. With this plan, Italian enterprises can rely on a series of measures aimed at favouring the improvement of their competitiveness. These measures can further boost the consumption of machinery and innovative technologies for factory digitalisation,” Mr Carboniero said.

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