Grass roots productivity evident at EMO Hannover
We are certainly living through unprecedented times and it would appear that the macro economic conditions that are driving a ‘bullish’ Machine Tool market show no signs of significant change in the short term – an observation that is very much supported by the vibrancy witnessed at the EMO fair.
Widely rated as a leading forum for dialogue and networking, this year’s EMO show attracted over 2,200 exhibitors, with around 130,000 visitors indicating their intent to invest in total over 20 billion euros in purchasing production technology over the next 24 months.
We noticed high levels of interest at the show from all over the Globe, the key driver for the heightened activity being the two sides of a now familiar coin, namely: the low cost of borrowing and the corollary to this, the non-existent earning potential of cash.
As the boardrooms of profitable companies in growing economic sectors contemplate an increasingly healthy cash position, investment in ‘Capital Equipment’ that generates a return becomes an ever more compelling choice. The higher the quality, the greater the security offered and therefore the attraction. Demand is increasing year on year as asset fleets are renewed and it is the high-end producers who are experiencing the most benefit.
In the UK we are further advantaged by the weakness of Sterling, our exporters are stretching their capacities and the indigenous supply chain is not immune to this condition. Whilst the strength of the Euro will increase the cost of machines purchased from Kingsbury, we take comfort from the fact that our customers have never bought our machines because they are cheap but rather because they are busy, and seek a reliable, effective solution that will allow them to make the most of a vibrant market.