Global sales of plastics and rubber machinery will increase by an average of 3% a year in the period from 2014 to 2016, according to a trend report commissioned for the first time by the VDMA Plastics and Rubber Machinery Association. This article looks back on how major machinery markets in the world performed in 2014.

Chinese Machines Welcomed in Global Markets

In terms of volume, China is the world’s largest plastics machinery supplier. In 2014, there were 397 machinery makers above designated size, up 5.6% compared with 2013. Export values, major income, and profits of the industry increased by 23%, 7%, and 7% respectively.

Last year, China exported 230,584 units of plastics machines, up 71% year on year (YOY). Total shipment value was $1.85 billion (U.S), up 7% over 2013. The export of injection molding machines and bridge-die-forming machines enjoyed steady growth.

Extruder shipment volume rose by a staggering 141%, while value increased 6%. Despite the export
volume of blow molding machinery dropping 86%, this category’s total value was able to achieve a slight growth of 2%.

In 2014, the trading of 3-D printers was being counted separately in China, with 53,800 units being shipped out, valued at $24.61 million. The growth rate was exponential in the second half of the year, in which 42,000 units were exported at $17.7 million. Both figures climbed 260% and 155%, respectively, compared with the first half of 2014.

In terms of export destinations, Vietnam, the USA, Turkey, and Iran were the most active markets. Thailand, Indonesia, Brazil, India, Russia, and Malaysia slowed down, however.

As for plastics machinery imports, China bought 21,734 machines from abroad, which represented an enormous growth of 116%. Import values totaled $1.98 billion, up 9% compared with 2013.

Injection molding machines were the major targets of imports, with 7,380 units being shipped to China last year, a YOY increase of 29%. Total import value amounted to $750 million, rising 9%. Imports of pelletizers also increased significantly, as 214 units were shipped to China at $215 million.

From a regional perspective, imports from Germany remained steady; there was more interest in machines from Taiwan, Italy, the USA, and Austria. Imports from Japan, France, and Switzerland were down by 10% in value, but no country posted a bigger drop than Korea (-40%).

Germany’s Domestic Orders Grew Significantly

From 6% growth predicted in 2013 to a revised the expectation to 3% in the middle of the year, Germany’s plastics machinery industry settled for a 1% decline in 2014. The industry expected total sales of €6.7 billion in 2014, just short of the previous year’s record, according to the VDMA.

“German deliveries abroad [...] decelerated sharply, falling by 5.3% in the first half of the year [2014],” explained Thorsten Kühmann, the VDMA Association’s managing director. “The export picture is dominated by negative trends in demand from and exports to Brazil, Russia, [and] India, as well as Turkey and Mexico. China, too, is weakening.”

Kühmann has already warned that the political crisis surrounding Ukraine and Russia might have a negative impact on the industry. Russia was the third-largest export destination of German plastics machinery in the past few years. Ulrich Reifenhäuser, the Association’s chairman, admitted that “the global crises are also increasingly affecting sentiment in the firms concerned.” Nevertheless, VDMA is predicting a 4% increase in sales in 2015, based on strong domestic demand and the active European Union (EU) market.

Despite a 3% decrease of orders from abroad, orders within Germany rallied strongly in the period from January to August in 2014, up 20% compared with the same period in the previous year. In particular, there was a 10% increase generated in the countries of the EU 28 area. 

“The increase in demand is making up for the sharp fall in Russia. Growth has come from our East European neighbors in particular, but also from Italy, Spain, and Portugal,” said Kühmann. Overall, incoming orders for German plastics machinery in 2014 were 2% higher than the previous year.

The optimistic forecast for 2015 assumes that capital investment in Germany will continue to grow and that the trends in the top sales markets of China and the USA will remain
positive. Large increases in the consumption of plastics are predicted for China in particular, bringing rising demand for high-quality machinery.

Exports Lead the Line for Italian Machinery

According to Assocomaplast, the Italian trade association belonging to Confindustria, exports of Italy’s plastics machinery rose by 8%. Progress in exports maintained a constant pace to the end of 2014, sustaining Italian machinery manufacturers in a period when the domestic market showed only timid signs of recovery. In fact, despite an 8% increase in orders from abroad, the propensity towards investment by domestic converters remained limited into the final quarter of 2014.

Assocomaplast, according to surveys among its members, estimated a value of production that again touched the threshold of €4 billion. The trade balance has further increased in a positive direction, going well beyond the €2 billion threshold, with the domestic market just under that level.

The most recent survey run by the association also highlighted a generally optimistic outlook among approximately one-third of the interviewed companies, which expected further increases in orders and turnover in the first half of 2015. A similar percentage also expected the export share to increase.

Regarding the destinations for foreign sales of Italian machinery, a clear and progressive increase is noted for European countries within the EU. Meanwhile, the total trade with extra-EU countries has fallen off, dragged down by the negative performance in Russia (-11.9%), partially as a result of the sanctions applied in response to the Ukraine crisis and the collapse of the ruble.

Enjoying the North American Free Trade Agreement (NAFTA), exports to the USA also increased in 2014. The lackluster trend in sales to Brazil (-11% with respect to 2013) conditioned the overall performance in South America.

Exports to Asia were supported by an upswing in demand from China, as well as Vietnam, Indonesia, and India, to name but a few—compensating for a slow-down to South Korea, Japan, and Thailand.

The USA, with a 21.5% increase, overtook France (-10.4%) as the second-largest exports destination of Italy’s plastics machinery. Germany, meanwhile, remained in first place by a wide margin.

In terms of machinery types, positive performance was again shown in blow molding machines and flexographic printing machines, up 11.6% and 11.1%, respectively. The export value of extruders remained stable with respect to the previous year, but injection molding machines showed a clear downturn (-16%). The molds sector continued to perform well (especially injection types), representing over 28% of total Italian machinery exports.

Note: This is an abridged version of an article that first appeared in China Plastic & Rubber Journal (used with permission). For more details about 2014 plastics machinery shipments, see p. 46 in the May issue of Plastics Engineering.