A new report from IMS Research shows that growth in China is predicted to increase substantially in 2010 from the 2009 level, without quite reaching the 20 percent plus growth seen before the economic downturn. Continued growing domestic demand, with higher levels of disposable income and large government investment, underpins this return to stronger growth in machinery production.
Of the major industrial nations, the United States is expected to be among the strongest performing in terms of growth in 2010. The U.S. was one of the first into the downturn, and subsequently one of the earlier nations to return to growth. The recovery in the automobile industry, which benefited from large government stimulus packages, is helping drive growth in machinery production revenues in 2010.
Germany, the leading European producer of machinery, suffered badly as its exports declined throughout the economic downturn. Recovery in Europe started slightly later than in America and is being tempered by concerns in several countries over vast sovereign debt and the effects of austerity programs to address it. Growth in Germany is being primarily driven by a recovery in exports which are benefiting from a weak Euro.
Japan’s machinery production, like that of Germany, relies heavily on exports; and so suffered badly as a result of the drop-off in trade of 2009. As with all the other countries considered, growth in 2010 is predicted, although it will be limited. The Japanese machinery sector had benefited from government incentives; however these have recently come to an end and in addition to this, a strong yen is adversely affecting the competitiveness of Japan’s exports.
The report from IMS Research examines production of industrial machinery by country, with a quarterly-updated forecast looking out to 2014.
About IMS Research
IMS Research is a supplier of market research and consultancy services on a wide range of global electronics markets. The company headquarters is in Wellingborough, United Kingdom, with offices in Austin, Texas, and Shanghai, China. IMS Research regularly publishes detailed research on the industrial automation markets, among others.
