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Machinery / VDMA Outlook Interview Exclusive

Bottlenecks from Disrupted Supply Chains Now Easing Considerably

The VDMA or Verband Deutscher Maschinen-und Anlagenbau or the German Engineering Federation, representing more than 3,600 German and European mechanical and plant engineering companies, employs around 3 million people in the EU-27 with more than 1.2 million in Germany alone. Focused on innovation, exports and SMEs, around 80% of the machinery sold in the EU comes from manufacturing plants in the domestic market. texfash.com in conversation with Dr Harald Weber, who has been the Managing Director of the VDMA Textile Machinery Association since January 2023.

By

8 May 2023

 5 minutes
Long Story, Cut Short
  • EU must strike right balance between necessary, yet minimal, legislative regulation. A successful transition requires a level playing field which sets out fair rules for sustainability, enabling European companies to increase global competitiveness.
  • Mechanical and plant engineering remains the largest industrial employer in Germany.
In March, the mechanical and plant engineering sector in Germany recorded a real decline in orders of 6 percent. A small ray of hope after several months of double-digit declines, but not yet a turnaround.
Waiting to Turn Around In March, the mechanical and plant engineering sector in Germany recorded a real decline in orders of 6%. A small ray of hope after several months of double-digit declines, but not yet a turnaround. Pexels / Pixabay

texfash.com: In about a month's time, ITMA will return. What does VDMA have in mind for this big event? How does VDMA plan to leverage this event for the benefit of Germany textiles and textile machinery industries? What are the plans like?
Harald Weber: The activities of VDMA in the run-up and during ITMA are themed: ‘Transforming the World of Textiles: Efficient – digital – circular’. In various formats, the VDMA and its members will be demonstrating the solutions that mechanical engineering provides for the challenges facing the textile industry: 

Way2ITMA:

  • Preliminary reporting and positioning of the industry with videos and statements
  • Presentation of solutions of VDMA members in Webtalks and more info on our customer portal of the IndustryArena ()

VDMA members@ITMA:

  • - Directory of all exhibiting members with references to recycling technologies
  • - Umati Demonstrator (web-based demonstrator for digital networking of machines using OPC UA) 
  • - Press conference on June 8, 2023, 1:30pm
  • - Video messages directly from the exhibition booths. 

Earlier in April, VDMA had issued a press release on securing and strengthening Germany and Europe as industrial locations. The sense of urgency was very obvious in that statement. Could you please elaborate on why and how this is of immense significance?
Harald Weber: Mechanical and plant engineering remains the largest industrial employer in Germany. At the end of last year, more than one million people were employed in mechanical engineering companies in Germany – an increase of 1.1% over the previous year. To secure these jobs for the future, policymakers in Germany and Europe must make more of an effort in global competition to keep up with other world regions.

The subject of locations would take us to the question of supply chains. How are disruptions in the supply chains impacting industry in Germany, both in terms of inputs as well as exports/sales. How geared up is VDMA and its members for absorbing supply chain shocks?
Harald Weber: Bottlenecks resulting from disrupted supply chains are now easing considerably. The peak of shortages was registered in June 2022, when 87% of member companies experienced noticeable or serious difficulties in their supply chains, according to the VDMA survey. In March 2023, it was only 57% of companies. Admittedly, the situation is far from normal due to continuing supply gaps for electronic components. However, most companies will expect further easing in the coming months. In order to reduce future bottlenecks, many companies are in the process of broadening their supplier base, but this cannot be done overnight.

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In Germany, an increasing amount of power we consume is produced by modern wind generators. The rotor blades of these generators are made of composites. German textile machines, such as warp knitting machines, braiding machines, etc, are used to process fibre-reinforced composites. So, innovations in the textile machinery industry are the launch pad for intelligent applications and products.

Harald Weber
Managing Director
VDMA
Harald Weber

How is the market for textile machinery shaping up this ongoing fiscal, and what are the expectations for the next?
Harald Weber: Most of 2022 was a good year for the German textile machinery sector. The overall exports of textile machinery and accessories summed up to approximately €3 billion, which was slightly above the good year 2021. But from autumn on, incoming orders have slowed down and there have been cancellations. The latest turnover forecast of the VDMA assumes a negative of 7% for our industry in 2022–23 (coming from high numbers in 2021–22: +19%). It is too early for a well-funded business forecast for 2024.

How much did VDMA have to rejig its strategies following the Russian attack on Ukraine, the other political and economic upheavals? Please elaborate.
Harald Weber: Since the annexation of the Crimea by Russia in 2014 and the following international sanctions, business with Russia has been difficult or impossible. The war in Ukraine, the COVID-19 pandemic as well as the disputes between China and the US showed us, that things we took for granted in international relations have changed or are still changing. The frameworks have become more uncertain. These are indeed forces and factors out of our hands. Will the machinery sector lead the way or will it be led by others? It is our ambition to lead and to be at the top, e.g. with regard to quality and technologies.

How has the EU’s Strategy for Sustainable and Circular Textiles impacted the thought process and steps at VDMA? What are the directives being sent out considering there will be legislation, introduction of new regulations and standards?
Harald Weber: The companies organised in the VDMA Textile Machinery Association welcome the ambitions of the EU to promote climate protection, in particular the approach of combining the goals for the EU textile and clothing industry into a sector-specific strategy. Up to now, the increasing textile consumption around the world, due to growing population and purchasing power has been accompanied by a rising use of resources. 

The textile machinery companies organised in the VDMA are geared towards a functioning circular economy. With our highly efficient technologies we are an indispensable partner in this transition process. But the new framework must be practicable. The EU must strike the right balance between necessary, yet also minimal, legislative regulation. A successful transition requires a level playing field which sets out fair rules for sustainability, thereby enabling European companies to nonetheless increase their international competitiveness.

Mechanical and plant engineering remains the largest industrial employer in Germany. At the end of last year, more than one million people were employed in mechanical engineering companies in Germany – an increase of 1.1% over the previous year.
Big Employer Mechanical and plant engineering remains the largest industrial employer in Germany. At the end of last year, more than one million people were employed in mechanical engineering companies in Germany – an increase of 1.1% over the previous year. Pexels / Pixabay

The technical textile industry has for quite sometime been considered the industry of the future. What are the innovative developments taking place in this segment, with focus on sustainability and circularity of course?
Harald Weber: It is difficult to pick out one single development. Due to the increase in gas and oil prices, energy is a challenge for many countries. In Germany, an increasing amount of power we consume is produced by modern wind generators. The rotor blades of these generators are made of composites. German textile machines, such as warp knitting machines, braiding machines, etc, are used to process fibre-reinforced composites. So, innovations in the textile machinery industry are the launch pad for intelligent applications and products.

What is your India story? How has growth been in the last two years and what are the expectations for the next two? 
Harald Weber: Due to the pandemic, 2020 was a very weak year. But the German exports of textile machinery and accessories to India have improved a lot. In 2021, German exports reached approximately 200 million euros. With more than €320 million in 2022, the shipments to India were back to pre-pandemic levels. The outlook for 2023 for India is at a good to satisfactory level.

Richa Bansal

Richa Bansal

RICHA BANSAL has more than 30 years of media industry experience, of which the last 20 years have been with leading fashion magazines in both B2B and B2C domains. Her areas of interest are traditional textiles and fabrics, retail operations, case studies, branding stories, and interview-driven features.

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  • Dated posted: 8 May 2023
  • Last modified: 8 May 2023
 
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