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Mechanical engineering market continues to develop well
The companies of the Technology Division are embedded in the growth-oriented mechanical
engineering sector. The partly rapid increase in domestic order intake is likely to lose some of
its impetus, but nonetheless continue to grow all in all. Estimates are based on an increase of 5% in
capital expenditure projected for Germany in 2008. In respect of foreign orders placed which, despite
slackening demand from the USA, continued to develop well, sustained growth is anticipated, above
all owing to orders placed from Europe and the emerging markets.
Along with the negative impact of the subprime and financial crisis, the high valuation of the euro
against the yen and the dollar and the progressively higher prices of energy and materials, such as
stainless steel, for example, are viewed as factors burdening German mechanical engineering. In addition,
with order levels remaining high, precautions must be taken for potential capacity shortfalls in
key suppliers and in mechanical engineering itself.
Overall, the possible development of international mechanical engineering in the year 2008, also
taking account of the customary risks, presents a promising picture. On the basis of factors already
known, the VDMA (German association of machine and local industrial equipment manufacturers) in
Germany anticipates a plus of 5% in real machinery production, also at an international level. Should
this forecast be accurate, this would mean a 40% increase in the production level within 5 years for
German mechanical engineering.
The investment propensity of the global beverages industry, which constitutes just under 80% of
the sales revenues and is therefore our main customer sector, is looking very dynamic in the future. In
the years ahead, the global consumption of packaged beverages is likely to grow by 6%. With the
exception of the North American market, which is dampened by the current economical situation
there, rising international order intake can be anticipated. Demand for packaged beverages, especially
in the emerging markets, driven by the swift increase in prosperity is thus improving the market for
our machinery. The positive development will also compensate part of the increase in expenses also
caused by rising material and payroll costs.