Machine builders have done very good business with China in the past. Recently, however, things have started to slip, which is also causing concern in the industry in the south-west. The search for alternatives has long since begun.
Stuttgart (dpa/lsw) – China is still very important for machine builders in the southwest – but the industry is concerned about developments there and is trying to find new markets. The goals of the Chinese leadership to integrate Taiwan by 2027 must be taken very seriously, said the chairman of the mechanical engineering association VDMA in Baden-Württemberg, Mathias Kammüller, the German press agency. “That would be the worst case if it happened.” In the short term, however, he does not expect relations to deteriorate significantly.
China is the second most important export country after the USA for the machine builders in Baden-Württemberg, who are meeting on Wednesday for a general meeting with guests from politics in Fellbach. High-tech machines in particular are still in high demand in China, according to Kammüller, who is a shareholder and board member at laser specialist Trumpf. In the middle segment, on the other hand, the Chinese are much more competitive. “A lot of people have a hard time with that.”
Many companies from Baden-Württemberg also produced in the People’s Republic for the local market. “It’s a good deal.” In addition, China is an important procurement market. For some parts – such as optical components – there are hardly any alternative suppliers. “If the development of the last year and a half continues like this and the trade restrictions become even stricter, then it will be difficult for our business,” said Kammüller.
The machine builders from Baden-Württemberg are pinning their hopes on the USA: In the first half of 2022, the export volume grew by a fifth compared to the same period last year. The rest of Asia is also a good growth market, and South America has also developed well.
The VDMA in the southwest has also followed the discussions about Chinese investments in Germany in recent weeks. However, the case of the concrete pump manufacturer Putzmeister, which was taken over by a Chinese investor in 2012, showed that initially there was no deterioration. “On the contrary, new sales markets have developed,” said Kammüller.
On the other hand, it is still very difficult for German companies to take over Chinese manufacturers. With Trumpf, it would have taken them three years for such an undertaking – and Kammüller said they only got a chance after the intervention of the then Chancellor Angela Merkel. However, the EU and the federal government have recently woken up and are accompanying processes much more critically than before, said VDMA Managing Director Dietrich Birk.
In general, machine builders in the south-west are relatively optimistic about the coming period, but are also feeling the strain. The large order backlog is currently helping, but there are signs of a slight dip in incoming orders. In terms of sales, the industry is still expecting slight growth for the coming year.