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The Machine Tool Industry in the UK 2011

Story added 12 July 2011.

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What a contrast, 2010 to 2011 in the Machine Tool industry. Wind the clock back 18 months and every precision engineer in the country was nervous about the months ahead, so much so that the milling machine capital expenditure on machine tools and used machine tools was some distance from their thoughts. Now step into June 2011 and you'll find engineers hunting high and low for a good quality cnc lathe or a milling machine, or even used machine tools, often with little success. Quite simply the country is SOLD OUT. Machine Tool consumption during the last 12 months has hit a 30 year high. Machine tool suppliers in the UK are publishing sales figures like never seen before; it's an amazing U-turn that's almost impossible to explain.

With the UK in economic freefall and countries such as Greece, Ireland and Portugal struggling to repay hefty loan notes, the UK manufacturing sector has never been busier. The strength of sterling has played a part in helping UK suppliers export goods as well as having to quickly replenish stock that was never manufactured during the recession; these two factors alone come some way to explaining our machine tool supply boom.

Also interestingly during a recent survey Machine Tool Direct (MTD) found that engineers were more likely to buy new machinery thanused machine tools, with interest rates at an all time low and the demand for reliable manufacturing at an all time high, the risk of not being able to supply milling machine and turning centre capacity on-demand - is just simply not worth taking.

Most engineers find themselves at full capacity in their machine shops and, in general, are running several milling machines or turning machines at once. It's well documented that good machine tool operators are difficult, to find especially in the UK, not only operators but programmers as well. This also sets an important precedent to machine tool builders and manufacturers...design and make new machinery easy to set and operate in order to overcome the all too common objection 'I’m going to buy the competitors machines because it means I can employ an unskilled person to run it and they’re not only cheaper but also easier to find'.

The level of technology available on machine tools today means that the required skill to run a machine is far less than a decade ago: new techniques and software integrated into the machines provides far simpler ways of machining parts. In fact like autopilot on a jet, machine tool builders incorporate conversational programming languages and fail-safes into the modern day machine in order to help them sell. Ultimately if the equipment is easy to use it's more likely to be bought by an engineer.

So with machine tools hard to find and work mounting up, who are the winners in this situation? Well quite simply everyone involved in manufacturing. This is a great time to invest in new technology albeit on longer lead times and also to learn new skills. MTD recently spoke to one subcontract engineer in the Midlands and he told us how he felt this ‘purple-patch’ was an opportunity to expand and reinvest in new machine tools. He'd recently purchased two new 5 axis CNC milling machines and two new multi axis lathes. Knowing that potentially round the corner is another slow-down, this was the time to protect his milling and turning business and make himself the most competitive he could be - in order to win in more difficult times. The machines aren't due for delivery until year-end but once they’re in there – he’s one step ahead.

Also winning are the machine tool suppliers, machine tool dealers with milling machines, lathes or turning centres in stock during the last 18 months; they could almost name their price! Profitability was up, sales were up and the ‘mojo’ was firmly back in the stride of those who thought it would never resurface. Some machinery suppliers were boasting annual targets had been met by the end of the first quarter, something unseen for decades. This is providing a nice cushion and a chance to invest in their own design and manufacturer of future products. Equally, some simply opt to invest in further sales and marketing strategies to capitalise even more on a buoyant industry.

So for anyone that said manufacturing and the machine tool industry was shrinking, on this evidence come 2013 the demand for machine tools in the UK may well outstrip the supply. Any likely backlog is going to be in the components that are integral parts of the machine tools, such as, ball screws, control systems and castings. It's likely you could expect to have to wait up to 6 months for a new milling machine and even up to 1 year for a multi axis lathe. If this does become the case UK manufacturing could struggle and today's winners may just become tomorrow's losers.

Plan for the future, expect demand to be high, replenish stocks now, design and invest in new technology whilst you can and be in a position of strength when that time comes. With the pound weakening and the costs in the Far East increasing every day, manufacturing is coming back to the UK for good. So don't hesitate, order your new machine tools today and be ready for 2012.

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