The European machine tool sector is facing a challenging period, with production and consumption expected to decline sharply in 2024. According to CECIMO, the European Association of Manufacturing Technologies, ongoing geopolitical tensions, market uncertainties, and structural economic issues are putting the industry under pressure. The outlook for 2025 remains fragile, raising concerns about Europe’s future leadership in advanced manufacturing
The European Association of Manufacturing Technologies (CECIMO) has highlighted a challenging economic environment for the machine tool sector in 2024. During its Economic Committee meeting in San Sebastián, CECIMO reported that member companies experienced significant difficulties throughout the year. Production levels for European machine tool (MT) builders dropped by approximately 7.5% compared to 2023. This decline was also reflected in the global market, with Europe’s share of world production falling by nearly one percentage point, though the region still accounts for a substantial 32.8% of global MT production.
Declining Consumption and Trade
The downturn was not limited to production. Consumption of machine tools in European countries decreased sharply by 17.2% in 2024 compared to the previous year. Export figures also showed a downward trend, with European MT builders’ exports falling by 5.3%. Imports of machine tools into Europe dropped even more steeply, by 16.3%. The United States and China remained the primary export destinations for European MT builders, while Japan and Taiwan continued as the main suppliers to the European market.
Cecimo attributes these negative trends to a combination of global challenges, including rising geopolitical tensions, ongoing market uncertainties, and a broader slowdown in both the European and global economies. These factors have led to reduced demand for machine tools and exerted downward pressure on order levels. The CECIMO8 Total Order Index, which tracks orders from eight major European producers, fell by 3% in the first quarter of 2025 compared to the previous quarter and was 1% lower year-on-year. On an annual basis, the average order level for 2024 was 5% below that of 2023.
Uncertain Outlook for 2025
Looking ahead, CECIMO forecasts a fragile and uncertain period for 2025. The sector faces ongoing geopolitical instability, policy uncertainty, intensifying global conflicts, and persistent structural economic challenges. The rise of trade barriers is expected to further disrupt global trade dynamics. CECIMO projects another 7.5% decrease in production for 2025. While machine tool consumption in Europe is expected to decline at a slower rate of 1.1%, global consumption is forecast to grow by 4.9% during the same period.
Risks to Europe’s Industrial Leadership
The association warns that, as other regions invest strategically in manufacturing, Europe risks losing its global leadership in this critical sector. Such a decline could jeopardise value chains, reduce Europe’s strategic autonomy, and increase dependence on external suppliers for essential production technologies. François Duval, President of CECIMO, emphasised the importance of machine tools and advanced manufacturing technologies for Europe’s industrial competitiveness. He warned that continued erosion of the manufacturing technology base could undermine downstream industries and increase reliance on external suppliers.
