Peter Neumann, CEO of machinery manufacturer Engel (Schwertberg / Austria; www.engelglobal.com), expects global output of injection moulding machines to reach just 39,000 units in 2009, compared with 91,000 in 2007. The anticipated regional split is 7,000 in Europe (half the 14,000 produced in 2007), 4,000 in North and South America (7,000) and 28,000 in Asia (70,000). “The market has dropped to a level never previously seen,” Neumann commented.

The US, where the downturn was thought to have bottomed out, has been especially hard hit. Neumann now expects this market to absorb just under 2,000 machines this year, with 30 manufacturers fighting for a slice of the smaller pie. However, speaking to 2,000 guests at the Engel Symposium 2009 in St. Valentin / Austria, he said he believes that the US market emerge from recession ahead of Europe.

Engel sees positive signs for business, in spite of the economic crisis. In terms of sales the company increased its market share in 2008 to 27% in Europe from 23% in 2007 and by 13% worldwide. Neumann said he assumes that this upward trend will continue, even under present conditions. However, given the company’s already strong position in Europe, he sees little further growth potential in this market. By contrast, the aim is to raise Engel’s market share in North and South America from 12% to 20% in the medium term.

In Asia, where the Austrian machinery manufacturer faces strong competition from Japanese, Chinese and Taiwanese companies, it claims a market share of 4%. In Neumann’s view, the Europeans “still have a long road ahead of them in this region.”

Russia seems to play no role as a growth market for the machinery group in view of the present credit crunch. Neumann confirmed that all investments there “have been put on ice.” At the same time, he said demand is enormous, so that the country is regarded to have great potential.

For the 2008/2009 financial year (31 March), Engel reported sales of EUR 591m, down from EUR 622m in 2007/2008. The increase in sales in the first six months of the current financial year almost offset the contraction in the last six months. “Some areas suffered heavily,” the CEO said. For the current financial year, he forecasts sales of only around EUR 400m.