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Product category: Manufacturing industry news
News Release from: Manufacturing Technologies Association
Edited by the Manufacturingtalk Editorial Team on 22 September 2004

UK machine tool exports rise, imports
decline

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Despite the problems of the exchange rate, UK exports of machine tools in the 1st half of 2004 (January to June) were at their highest since 2001.

Despite the problems of the exchange rate, UK exports of machine tools in the 1st half of 2004 (January to June) were at their highest since 2001 In contrast, imports into the UK were at their lowest since 1994 for this period of the year, although the comparison with 2003 is complicated by a large exceptional item last year - it is considered that the trend here is broadly stable, but it is difficult to estimate the "one-off" element of the trade from the "regular" business

UK exports of machine tools in the 2nd quarter of 2004 were worth GBP 101.2 million; this is 4.9% higher than in the 2nd quarter of 2003, but is down by 1.1% compared to the 1st quarter of 2004.

The total for the first half of 2004 is GBP 203.6 million, an increase of 11.7% on the first half of 2003.

On the same basis, UK imports of machine tools fell by 8.4% compared to the 2nd quarter of 2003 to GBP 92.9 million; this represents an increase of 7.6% compared to the start of 2004.

For the half-year, total imports were GBP 179.2 million, a reduction of 17.5% on the first half of 2003, although the earlier period included an exceptional item, valued at around GBP 35 million (a similar figure to the value of the reduction).

The trade surplus for the sector in the 2nd quarter was, therefore, GBP 8.4 million, making a total of GBP 24.4 million for the first half of the year; this compares with a deficit of GBP 30.0 million in the first six months of 2003.

Analysis of trade with the European Union is complicated by the accession of 10 new countries in the middle of the 2nd quarter, but there was an increase in exports using both the old EU15 or the new EU25 aggregates; meanwhile imports from the EU fell, mainly as a result of the "one-off" items highlighted above.

In the first half of 2004, the top four export markets were the USA, Germany, Belgium and China; between them, they accounted for nearly half of the total value.

The leading sources of imports were Germany, the USA, Japan and Italy, which accounted for just over 60% of all imports (by value).

In terms of products, there was a significant trade surplus for machining centres (+GBP 23.4 million) and CNC grinding machines (+GBP 10.7 million); the most significant deficit was in CNC lathes (-GBP 8.4 million).

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