Brussels, 22/03/2012 (Agence Europe) - A new study by the Commission on the competitiveness of the EU mechanical engineering industry highlights that the industry is doing exceptionally well at international level.
EU mechanical engineering products have held a share in world trade that climbed from 34 to 37.2% between 2000 and 2010. This contrasts with the performance of its developed competitors, the United States and Japan, whose share has fallen from 25.6% to 17.4% and from 21.3% to 15.6% respectively. China, meanwhile, has seen its share climb from 3% to 13%. Such a comparison highlights the strength of European mechanical engineering companies, that are well established on the global suppliers market, and that have managed to enlarge their market shares despite the emergence of new competitors. “The strong international performance of the EU mechanical engineering industry has turned out to be an asset for the EU in the era of globalisation. It is the proof that successful industrial production in Europe is possible. If innovation, productivity, export and customer orientation, creativity and entrepreneurship come together with a well-functioning internal market, industrial production has a bright future in Europe”, states Commissioner Antonio Tajani.
Every light is green for the European mechanical engineering industry. Not only does it provide 3 million jobs within the EU but it also contributes significantly to a sound current account balance for the EU27. In 2010, the EU trade deficit was €156.7 billion for manufactured goods but for mechanical engineering the EU reached a surplus of €119.2 billion. The sector is also in the lead worldwide, since the added value produced by the mechanical engineering industry in the United States and Japan amounts to 65.4% and 42% of that of their European rival. It should be noted, however, that China has rapidly caught up the EU over the past decade, since the added value of its mechanical engineering industry is now equivalent.
If it wants to remain in the lead, European mechanical engineering must meet major challenges - first of all, in terms of labour productivity, where the EU is overtaken by both Japan and the United States. Wages paid in the sector in the US are 20% higher than in the EU. The new EU member states are faced with growing competition from China, whose labour productivity levels are comparable to those of Poland, the Czech Republic and Slovakia, where the cost of labour is much higher, and where there is more focus on production than on R&D.
Prospects are clear: although Europe remains the leader in the field of technical regulations, where it is model for others with regard to its openness to international cooperation, the growth momentum of the BRIC countries, above all China, will cause a shift of economic activity away from Europe to Asia, and China will be clearly dominating the world output of mechanical engineering products by 2025. (EH/transl.jl).