All indicators of trade and growth have been affected by the Russia-Ukraine war, the Shanghai lockdown, the supply chain bottlenecks, and the everlasting effects of the still-ongoing pandemic. Where does the global textile machinery industry stand today?
The pandemic and the lockdown measures in numerous countries had of course a negative impact on clothing sales as well as on technical textiles for the automotive industry, for example. On the other hand, the pandemic boosted business with hygiene textiles, masks and surgical gowns. But the economic situation in the textile machinery industry already brightened noticeably by the end of 2020, beginning of 2021. The industry's order intake was also good in early 2022.
Machinery purchases to a very large extent indicate in which areas the textiles-apparel industry is going to invest in the next 5–10 years. What do you make of the current numbers? Please also share some statistics in that context.
In view of the current world situation, long-term forecasts are not very serious. The VDMA member companies’ order books are well filled after the pandemic-related slumps in 2020. However, ever-increasing raw material prices, massive supply bottlenecks for precursors, expensive and difficult transport conditions, and huge increases in energy costs are presenting many technology manufacturers with major challenges. Added to this are now the unforeseeable consequences caused by the war in Ukraine.
Those who made heavy investments in machinery till 2019 or early 2020 would have lost out in the two years of the pandemic when textile-apparel production fell. Your comments, please.
Very difficult for the international textile and apparel industry was definitely the time between spring 2020 and autumn 2020. But as I said, business brightened noticeably by the end of 2020.
Many big ticket trade events had to be cancelled in 2020, 2021 and even this year. How are machinery manufacturers dealing with the crisis and planning ahead. Textile-apparel manufacturers plan ahead and invest, and machinery manufacturers have to be one step ahead on that. How does VDMA look at this state of affairs?
Sales are particularly affected by the coronavirus pandemic. Due to postponed trade fairs and travel restrictions, with the web series ‘Textile Machinery Webtalks’ the VDMA team has developed a marketing platform that is attractive to potential customers and members alike. The aim of the webtalks, in each of which VDMA member companies present their technologies along the textile chain, is to initiate business. The webtalks have been very well received. Up to now, VDMA has held no less than 30 webtalks which have been joined by 4,700 specialists from around the world. But as we have learned in the pandemic over the past two years, no virtual meeting can replace face-to-face exchange on site. We are looking forward to the Techtextil fair end of June in Frankfurt and to ITMA, June 2023 in Milan.
It is being widely said and discussed that textile-apparel manufacturing in the coming years is not going to be anything like we say before 2020. Is there any ring of truth to it? In which countries are you seeing maximum demand for machinery right now, and where do you foresee it in the next 2–3 years, given that the pandemic is still on?
Sorry, I am not a clairvoyant. The scenario of a global pandemic would have sounded like something out of a B science fiction movie to me in 2019. Some months later it was a reality. As VDMA, we still see good business prospects in the big volume markets of China, India and Turkey. Bangladesh and Pakistan developed very well. There is growing potential is in Central America due to trade agreements with the US. The EU remains a good market e.g. for technologies for technical textiles.
You have assumed charge at a very critical juncture. What do you see your personal role to be, both in the German and the international context? Will machinery sector lead the way, or will it be led by other forces/factors?
Many of the roundabout 130 member companies of the VDMA Textile Machinery Association are small and medium-sized companies. For a single company it is very challenging to make itself heard in the face of politics and administration, trade fairs, research institutes, etc. But with joined forces under the VDMA umbrella, we are a strong negotiation partner. I see my role as that of a moderator who reconciles different interests and represents the industry's positions, for example, in international bodies such as CEMATEX (organisation comprising 9 national European textile machinery associations and owner of ITMA, the world's largest international textile machinery exhibition).
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. The war in Ukraine and the pandemic 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. But I don’t want to end this interview too pessimistic. I would like to draw the attention of your readers to the issue of circularity. 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 whole chain includes textile producers, brands, retailers and consumers. 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.
