In recent years, the European Association of Manufacturing Technologies warned that the machine tool industry is facing a severe downturn. The sector is under continuous pressure from global instability, trade barriers, weakened demand, and disrupted supply chains
For many years, Europe’s machine tool industry has been a cornerstone of the continent’s industrial strength. By delivering cutting-edge manufacturing technologies, the sector has consistently fostered high-value employment, enhanced industrial value chains, and supported Europe’s economic development and technological progress.
In recent years, however, a succession of disruptive events (including the pandemic, economic slowdown, geopolitical tensions, supply chain difficulties, rising inflation, and intensifying competition from China) has weighed heavily on the industry. Even though European machine tool manufacturers have proven remarkably resilient, the challenges they now face are threatening their global standing and their ability to remain competitive in the long term.
Economic fragility and business sentiment
Economic fragility and weakening demand have directly affected production levels and investment decisions. Business sentiment among European machine tool producers has been negative since the second quarter of 2023, accompanied by growing uncertainty. Output declined by 9.2% in 2024, and forecasts for 2025 point to an additional drop of about 8.5%. Europe’s share of the global machine tool market has also been shrinking: from 37% in 2019 to an estimated 31% in 2025.
A similar pattern can be seen on the consumption side. European machine tool consumption fell by 17.1% in 2024 and is expected to decrease by another 5.2% in 2025. As a result, Europe’s share in global consumption is projected to reach 20.8% in 2025, down from 25.2% in 2023.
Eight machine tool manufacturing nations
The downward trend is further confirmed by the annual averages of domestic and foreign order indices across the CECIMO 8 countries (Austria, Czech Republic, France, Germany, Italy, Spain, Switzerland and the United Kingdom). In 2023, these averages declined by 18% and 8% compared to the previous year. The contraction continued in 2024, with decreases of 12% and 16% respectively. The CECIMO8 Total Order Index followed the same trajectory, falling by 11% in 2023 and 12% in 2024.
Insights from the CECIMO Investment & Competitiveness Survey highlight the combined effect of global instability, trade barriers, and subdued demand, all of which have weakened the position of European machine tool companies in markets outside the EU. At the same time, rising costs, regulatory burdens, and limited financing opportunities are constraining investment in innovation and modernization, slowing the sector’s capacity to accelerate digital transformation and stay ahead of global competitors.
“Europe’s industrial backbone is under strain,” said Filip Geerts, CECIMO Director General. “Without decisive action, we risk losing our leadership in machine tool technologies within just a few years.”
“The sector’s deterioration threatens not only its own continuity but also Europe’s manufacturing competitiveness and technological autonomy,” added CECIMO President François Duval.
Reinforcing actions by CECIMO
European machine tool manufacturers play an essential role in strengthening Europe’s industrial base. By enabling technological upgrades and supporting reindustrialisation, advanced manufacturing technologies have significant positive spillovers across downstream sectors and the broader economy. For this reason, CECIMO calls on both national and EU-level institutions to reinforce support for the manufacturing technology ecosystem, recognising its strategic relevance within industrial value chains and its vital contribution to innovation, productivity and technological progress. Immediate, coordinated action is needed to safeguard Europe’s industrial future, preserve technological leadership, and ensure that the continent remains a global centre for advanced, sustainable and resilient manufacturing.
