Leather machinery sales predicted to increase
German manufacturers of leather and garment-making machinery are expecting a “significant upturn” in sales this year, as industries emerging from the economic downturn continue to invest.
The German Garment and Leather Technology Association, a member of the German Engineering Federation (VDMA), has forecasted a 24% year-on-year increase in machinery sales in 2010, with another rise of 7% likely in 2011.
However, according to VDMA chairman, Tilo Ullmer, who is also the owner and managing partner of PMF GmbH in Switzerland and Fortuna Spezialmaschinen GmbH, sales are still below levels seen a decade ago.
Mr Ullmer said: “There is an interesting trend in which more investments are being made, particularly in Europe and its surrounding countries such as Turkey and North Africa. China too has recovered, although rising wage costs have encouraged customers to go elsewhere. South East Asia is doing well, as is Brazil. The ‘problem children’ continue to be Russia and the US.”
VDMA managing director, Elgar Straub, named several factors that may have contributed to the recovery of sales. “Following a drop in investments among our customers in 2008 and 2009, business revived unexpectedly quickly in 2010,” he said. “Automation, flexible production, short
response times, economical use of resources – all these are aspects that are playing an ever-greater role.”
SOURCE: WORLD LEATHER BUSINESS WEEK