CECIMO proposes new EU machine tool industry policy

The EU economy is the world's largest machine tool production base. The European Machine Tool Industry Cooperation Council (CECIMO) has 15 member states and covers the vast majority of EU machine tool manufacturers. CECIMO's 15 major machine tool manufacturing countries have 1600 companies, 80% of which are small and medium-sized enterprises. Innovation and high R&D investment are the driving forces for the development of the European machine tool industry. Recently, CECIMO put forward the new industrial development policy for EU machine tools to the European Commission. The main points are as follows:

● Machine tool industry is a cross-cutting industry that provides manufacturing technology equipment and solutions for all other industrial economic sectors.

● The output value of the European machine tool industry accounts for 40% of the world's total output value and it is in a leading position.

● The industrial competitiveness of European machine tools is based on advanced production technology, high R&D expenditures, rapid innovation cycles and highly skilled workforce.

● The business performance of the machine tool industry is highly dependent on the customer investment cycle, which is also the reason why the industry is hit by the financial crisis.

● Uncertainty about future development may affect machine tool companies' investment in R&D. R&D investment is the key to the company’s victory over competitors to gain market share and ensure sustained growth.

● In the short term, for machine tool companies, especially those with more than 80% of SMEs, the most important is to obtain funds and public funds to innovate. Diversified investment in manufacturing technology has been extended to new areas. Such as renewable energy power generation, medical equipment manufacturing.

● In the long run, modern European industrial projects require the establishment of a sound R&D R&D investment in the machine tool industry. At the same time, high-precision and high-speed machine tool equipment will help improve the productivity of other relevant industrial sectors in Europe.

● The European innovation plan being revised helps to establish the right legal, financial and social environment to encourage and promote innovation. A single European patent will become a reality, encouraging companies, especially SMEs, to invest in R&D.

● The European regulatory system can ensure that all standards are healthy, safe, and harmonious. This is especially important to ensure a single, fair market environment and promote innovation. The system should be "smart" and be beneficial to SMEs. The impact assessment should consider expanding to the extent that European manufacturers can regulate the competition in the international market.

• Lack of market supervision will distort competition and hinder innovation. The greatest reward for innovation for machine tool manufacturers is fair competition in the EU internal market. Effective market supervision is crucial for strengthening cooperation among member states.

● Although it is an export-oriented industry, the shift of downstream industries (such as the automotive industry) to low-cost regions is a new challenge for machine tool companies. Different technical standards and regulatory systems in different countries often hinder market access. Internationalization of SMEs requires efforts to eliminate trade barriers, reduce trade risks and increase awareness of opportunities in emerging markets.

● Fair competition on a global scale should ensure that non-tariff barriers are eliminated and international standards are established. The effective cooperation between EU trade and industrial policies is very necessary.

● Industrial globalization should not lead to the transfer of European industrial and research bases from Europe. The manufacturing base will attract product development, researchers, distributors, and suppliers and will have a direct impact on economic growth and job creation.

● Manufacturing strength is built on complex skills. The needs of European manufacturing industries have made engineering research more attractive to young people and encouraged the promotion of lifelong learning programs in companies. The effective cooperation between the government, academia and industry will cultivate a good education and skilled labor force.