The European mechanical engineering industry reached an annual value of production of about €450 billion in 2009. Employment is estimated to have reached 3 million employees. This sector of the engineering industry that represents almost 9 percent of the value of industrial production in the EU plays a key role in the evolution of both competitiveness and productivity of industry in general.

Among the most important customers is manufacturing industry itself. It is a rather cyclical industry whose performance depends on the investment cycles of its clients. The economic and financial crisis has affected industry of mechanical engineering more than any other sectors. Investment budgets were slashed and capacity utilisation fell dramatically in manufacturing industry, thereby reducing the market for investment goods.

Volume of production contracted by 20 percent in 2009.

Deceleration in all major sub-sectors

Machine tools, agricultural and forest machinery were among the sectors that were the hardest hit with a drop in volume of production of some 30 percent or more in 2009.

Picture Courtesy of Orgalime