Materials Handling Production Falls 6.8% in Europe

The manufacture of materials handling equipment in Europe fell 6.8% to just under $70.75 billion during 2013, according to a report issued this month by the European Materials Handling Federation (FEM).

The decrease in production was attributed to a reduction in demand and stagnating exports, according to a report summary published on the website Logistics Manager.

While production of equipment lost 5%, repair and replacement dropped 13%, according to FEM. Domestic demand for materials handling equipment fell by 12%. Exports from Europe, which were $28.93 billion in 2013, are starting to account for nearly as much as domestic demand, the report stated.

The $70.75 billion production value is the same as it was in 2005.

Imports grew by 6.5%. Competitors outside of Europe were gaining a larger market share, but the trade balance is still seen as stable and still largely positive, according to Olivier Janin, the group’s secretary general.

“The share of exports in our production value means that our manufacturers compete more and more on external markets,” Janin said. “Their competitiveness is therefore crucial and a big part of it comes from their ability to innovate. European policies ought not to limit but to foster such an ability so as to safeguard industrial manufacturing in Europe.”