German Machinery Manufacturing Association Raises 2011 Production Expectations

Lindner, president of the German Machinery and Equipment Manufacturers Association (VDMA), announced at Hannover Messe that the annual growth rate of the industry's output value will be increased from the original 10% to 14%. The main reasons for the upward adjustment are: On the one hand, the Federal Bureau of Statistics upward revision of the 2010 production index; on the other hand, the industry's production level at the beginning of 2011 is better than expected. In January 2011, the output value of the industry increased by 23.6% year-on-year, and orders in February increased by 38% year-on-year, of which domestic orders increased by 40%, exceeding the increase of foreign orders by 37%.

In 2010, Germany’s machinery and equipment manufacturing exports amounted to EUR 125 billion, a year-on-year increase of 11.5%. Among them, exports to China increased by 34.7%, accounting for about one-eighth of total exports, while exports to Turkey and Brazil increased by 32.7% and 30%, respectively.

At the same time, neighboring countries in Germany have also benefited from their economic growth. In 2010, the total import volume of German machinery manufacturing industry was 45.9 billion Euros, an increase of 17.5% over the same period of last year, and continued to maintain its status as the largest importer of machinery and equipment in Europe. Of the imports of machinery and equipment from Germany, 59.6% of imports (27.4 billion euros) came from the European Union, of which imports from Italy amounted to 4.5 billion euros, ranking first in the EU countries; imports from Asia amounted to approximately 8 billion euros, an increase of 33.7% over the same period. Imports from China reached 2.9 billion euros, an increase of 33.1%; imports from the United States amounted to 3.9 billion euros, a year-on-year increase of 28.5%.