Spain’s Machine Tool Sector Hits Record €2.19B
San Sebastian, Spain – The Spanish advanced manufacturing and machine tool sector reached turnover of €2,193.11 million in 2024, which was 1.66 percent up on 2023, setting a new record. Despite a very difficult economic and commercial outlook, the strong order backlog accumulated throughout 2022 and 2023 has allowed us to maintain turnover slightly above 2023. The two main sub-sectors, metal cutting and metal forming, have performed similarly in terms of turnover, with an increase of 1.33 percent for metal cutting and 1.62 percent for metal forming.
Exports increased by 1.73 percent, reaching a record high of €1,639.73 million. In this case, metal cutting has recorded a positive performance, up by 1.41 percent, while metal forming is down by 5.16 percent.
The main destinations of the sectors’ export sales were Mexico, United States, China, Germany, and Italy. Followed by France, Portugal, Türkiye, India, and United Kingdom. Notably, Mexico topped the exports ranking for the first time, doubling the figure for 2023. The United States also recorded a very high figure, 8 percent up on what was achieved in 2023. China is up by 25 percent with respect to 2023, although these exports are a mirage that does not conceal the slump in orders from this country. Germany, in fourth place, has maintained its figure practically unchanged (+1 percent), and Italy, in fifth place, has seen the largest drop, losing more than half of the figure recorded in 2023. It should be remembered, however, that Italy is coming out of years of major activity thanks to Government incentive schemes for investment in production.
This ranking clearly reflects how North America, with Mexico and US, have made up for the weakness experienced for various reasons by both Europe and Asia.
2024 Orders and 2025 Forecast
Orders recorded in 2024 are down 23.11 percent with respect to orders received in 2023, after two years of strong increases. On the domestic market, the drop is 45 percent while exports are down by 20 percent. If the two main sub-sectors are analyzed, metal cutting has held up somewhat better, even though there was an 8.8 percent drop, whereas metal forming suffered a sharp fall of 40.8 percent.
In the case of orders, US stands out in first position, followed by Saudi Arabia with a very significant figure attributable to a one-off operation, and then Germany, Mexico, and Italy. The top ten is completed by China, Türkiye, Canada, France, and United Kingdom.
Xabier Ortueta, General Manager, AFM—Advanced Manufacturing Technologies, the Spanish Association of Manufacturers of Machine Tools, accessories, parts, and tools—said, “The order dynamics of the last 12 months have led to a decrease in the portfolio, and this means that we also expect a significant, although not dramatic, drop in turnover at the end of the year. The standstill in automotive investments (closely linked to our metal forming sub-sector) is concerning, plus the state of our main markets, which currently only portends a very difficult year and a further decline in incoming orders also in 2025. The weakness of Europe (especially Germany, France, and Italy), protectionism in China, and uncertainty in US are factors against which a sector as crisis-prone as ours will have to fight resolutely.”
He continued, “On the upside, the good performance of some sectors such as aerospace, railways, defence, and some branches of power generation will continue to present opportunities in a very complex and competitive scenario. As always, we will surely know how to take advantage of them.”
Defence of the European Industry
The advanced manufacturing and machine tool cluster warns of the crossroads at which Europeans find themselves and emphasizes the need for a change of direction in order to recover the leadership lost by their industry.
José Pérez Berdud, President, AFM Cluster—an organization representing Advanced and Digital manufacturing in Spain—commented, “There is no doubt that we are at a critical time for the future of production in Europe. Europe’s industrial weakness, largely caused by our own decisions, is very worrying. Many years ago we opted to hand over the baton in various sectors that have proven crucial today, relocating their manufacturing or outsourcing resources, strengthening the recipient economies (electronics, microelectronics & semiconductors, energy storage, defence, etc.). In addition, the necessary commitment to sustainability has led us to make some decisions that have turned out to be hasty and without properly calculating the consequences. Thus, over the past 6-8 years, we have also managed to squander part of our leading position in the automotive world.”
He amplified, “Today we find that, in the face of our weakness, the other blocs, China, US, and even India, have greatly strengthened their positions. The growing and fierce competition in all markets will be the usual dynamic, and we must continue to invest and take risks in order to innovate and offer a differential to our customers.”
Berdud continued to articulate, “Europe must ask itself whether it has a true interest in leading the world. Or perhaps the time has come to at least take the necessary steps so that we can once again pilot our own future. A large part of those decisions is to protect our viable industry from the tsunami that others are designing in order to prevail. While respecting our values and always defending fair trade, real competitiveness, and sustainability, we must invest in modern production equipment, encourage the intelligent purchase of our excellent products, and favor robust industrial positions in critical sectors. Some have already been mentioned, and the machine tool sector is, without a doubt, one of them.”
“In this sense—he concluded—we value very positively the first step taken by the Basque Government with the Industrial Defence Action Group, and we ask that initiatives such as this be scaled up at national and European level.”
+ INDUSTRY
From June 3-5, Bilbao Exhibition Centre (BEC) will host the industrial gathering of the year. The largest meeting point dedicated to Smart manufacturing will simultaneously host Addit3D (additive manufacturing and 3D printing), Bedigital (digital technologies for industrial application), Subcontratación (processes for manufacturing and industrial equipment and supplies), Maintenance (industrial maintenance), Pump&Valves (pumps, valves, and equipment for industrial processes), and the new feature of this year, WeAR (automation and robotics for all industries). Alongside these, WORKinn Talent Hub, an integral space for talent in the industrial field.
EMO
From September 22-26, EMO, the world's largest event for machine tools and advanced manufacturing, will be held in Hanover, Germany, where visitors—more than 92,000 from 140 countries at the last edition in 2023—can familiarize themselves with the latest trends in industrial production under the motto ‘Innovate Manufacturing’.
Image Source: AFM, Advanced Manufacturing Technologies
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