economic climate
international financial market crisis causes economy to slide further
Over the course of 2008, the economic climate increasingly deteriorated. A dramatic increase in oil prices and the looming inflation in the first half year accelerated the emerging economic decline. In the second half of the year, the international financial market crisis worsened the world’s economic slump. All large industrial nations subsequently introduced comprehensive stimulus packages aimed at mitigating the falling demand experienced by their national economies. According to estimates by the International Monetary Fund, the global gross domestic product may have fallen from 3.5 percent in 2007 to about 2 percent in 2008, which would be the lowest growth of the world economy in the past 20 years.
Gross domestic product drops dramatically.
In the United States, the high debt load of private households put a significant damper on economic growth. During the financial year, the United States’ gross domestic product fell to 1.3 percent from 2 percent a year earlier as a result (Source: January 30, 2009 issue of Frankfurter Allgemeine Zeitung). The decline may have been even sharper in the euro zone: from 2.6 percent in 2007 to 0.9 percent in 2008 (source: db Research economic outlook 2009).
Thankfully, growth in China and India stabilized the situation. China’s gross domestic product grew 9.6 percent compared to 11.9 percent in 2007, while growth in India came in at 7.7 present versus 9 percent the year prior. Economic performance of the Eastern European nations was also again robust; gdp was up 4.6 percent compared to 5.6 percent a year earlier (Source: Westlb Research gdp – growth forecast).
In Germany, gdp growth was down by 50 percent, declining from 2.5 percent in 2007 to 1.3 percent in 2008. Most of the growth occurred in the strong first quarter. By the fourth quarter, a decline of 2.1 percent was already being reported (Source: German Statistics Office 2 / 2009).
kuka group orders received by region
(share in %)
Mechanical and plant engineering sector manufacturing orders still higher.
mechanical and plant engineering sector reports declining orders received
The German mechanical plant and engineering sector – after an outstanding 2007 business year – was able to increase manufacturing by another 5 percent compared to the year prior. However, orders received, which are a leading indicator of future capacity utilization for companies, were already down 7 percent in 2008 compared to a year earlier. According to vdma, the German Engineering Federation, the 29 percent year-over-year drop during the fourth quarter makes it the weakest quarter since 1958. The decline was the same for both the domestic and export business.
global automotive markets decline sharply
The economic decline and the tightening credit conditions put pressure on the developed industrial regions, particularly the automotive markets. In the United States, car and light truck sales were 2008 down 18 percent compared to the same time last year. Only 13.2 million vehicles were sold (source: January 8, 2009 issue of Handelsblatt), the lowest number in 16 years. In Europe too, new passenger vehicle registrations fell to their lowest level in 15 years. In total, sales declined 8 percent year-over-year, to 14.7 million units. Germany and the new eu nations in Central and Eastern Europe experienced the smallest declines at – 2 and – 1 percent respectively. In Japan as well, sales of passenger cars dropped 6.5 percent to 3.2 million vehicles. Including the continuously increasing demand in the bric countries Brazil, Russia, India and China, and in the other developing nations, worldwide vehicle sales in 2008 totaled 56 million units, a drop of 8 percent.
demand for robots again slightly higher
Worldwide demand for industrial robots again rose slightly in 2008. The International Federation of Robotics (ifr) estimates that robot sales for the year in total grew between one and 2 percent (in number of units) compared to last year. Growth in the first half year was particularly strong, coming in at 8 percent. The total number of robots sold in 2008 was 116,000 units, which compares to 114,300 the year before. Growth in Europe was above average at 8 percent, while Asian markets reported an average increase of 2 percent. In the United States, sales dropped 15 percent after strong growth the year prior. The demand for articulated robots was up 6 percent compared to other robot types, thus continuing to be above average.
number of robots sold worldwide
(in thousands of units)
Source: International Federation of Robotics (ifr)