Machines and Engineering Industry Trends 2023

Market Monitor

  • Austria,
  • Belgium,
  • Brazil,
  • Canada,
  • China,
  • Czech Republic,
  • Denmark,
  • France,
  • Germany,
  • Hong Kong,
  • Hungary,
  • India,
  • Indonesia,
  • Ireland,
  • Italy,
  • Japan,
  • Malaysia,
  • Mexico,
  • Netherlands,
  • New Zealand,
  • Philippines,
  • Poland,
  • Portugal,
  • Singapore,
  • Slovakia,
  • South Africa,
  • South Korea,
  • Spain,
  • Sweden,
  • Switzerland,
  • Taiwan,
  • Turkey,
  • United Arab Emirates,
  • USA,
  • United Kingdom,
  • Vietnam
  • Machines/Engineering

9th November 2023

Growth slows amid subdued demand; opportunities will come from green and digital transitions

Tighter financing conditions and increased borrowing costs are having a negative effect on capital expenditure, in particular in major buyer industries like construction and transport. Both sectors are highly cyclical and sensitive to financing costs.

Backlogs of orders built up during the height of the pandemic should provide short-term support for production even in the context of weakening new orders. However, if industrial weakness persists, some of these longstanding orders are at risk of being cancelled.

The ongoing shift towards electric vehicles will lead to changes in machinery supply to the automotive sector, with more emphasis on batteries and related electrical equipment. Demand for machinery to manufacture conventional powertrains will weaken. 

 

Across all regions, we expect sector growth to decelerate in the long-term. This mainly affects Asia Pacific, where China’s pivot to a more services-oriented economy will reduce demand for capital goods.

 

Disclaimer

Each publication available on or from our websites, such as, but not limited to webpages, reports, articles, publications, tips and helpful content, trading briefs, infographics, videos (each a “Publication”) is provided for information purposes only and is not intended as a recommendation or advice as to particular transactions, investments or strategies in any way to any reader. Readers must make their own independent decisions, commercial or otherwise, regarding the information provided. While we have made every attempt to ensure that the information contained in any Publication has been obtained from reliable sources, Atradius is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in any Publication is provided ’as is’, with no guarantee of completeness, accuracy, timeliness or of the results obtained from its use, and without warranty of any kind, express or implied. In no event will Atradius, its related partnerships or corporations, or the partners, agents or employees thereof, be liable to you or anyone else for any decision made or action taken in reliance on the information in any Publication, or for any loss of opportunity, loss of profit, loss of production, loss of business or indirect losses, special or similar damages of any kind, even if advised of the possibility of such losses or damages.