Challenges for manufacturers

Decline in order intake

The mechanical engineering, machine tool, and machining technology industry is experiencing a significant decline in order intake: According to reports from the VDW (German Machine Tool Builders' Association), incoming orders fell by around 19 % in 2024, while exports orders declined by as much as 24 %. Such a decline leads to price pressure, capacity utilization problems, and shrinking margins.

Skills shortage and outdated qualifications

The CNC industry increasingly needs skilled workers for programming, operating, setting up, and maintaining modern machines. At the same time: many employees are retiring, there is a shortage of new skilled workers and digitalization requires new skills driven by Industry 4.0. According to market reports, the skill gap has become a mayor challenge in CNC machining. The resulting consequences: longer setup times, higher scrap rates, and less efficient processes.

High costs and limited market scope

CNC machines and automation systems are capital-intensive purchase, installation, software, maintenance - it all adds up. This poses major hurdles, especially for small and medium-sized enterprises. High initial investment costs are considered one of the main obstacles to automation solutions. In addition, uncertainty about the return on investment (ROI) means that many companies are reluctant to invest.

Competition and global shifts

International competition is intensifying: new production sites with lower labor costs and different regulatory conditions are increasingly investing in automation. This is putting pressure on costs and delivery reliability at traditional manufacturing companies to maintain or expand their required efficiency and quality advantages.