Featured Image

International News From the Field: Europe

Feb 22, 2021

Although Europe is often looked at as a whole, individual country status can vary widely. In 2020, the average loss of GDP was about 5% for the 27 countries of the European Union, but for some economies, it was more painful. However, the restored capabilities and innovation in manufacturing as well as significant progress with COVID vaccinations have driven the economic mood to the positive side. Currently, the European manufacturing PMI is over 54. Italian incentives, a proposed 25-mile tunnel, and aerospace developments further point to increased optimism. For more industry intel and other tidbits, read on.

  • In 2020, the hardest-hit GDPs were Turkey (-15.6), Spain (-9.1), the U.K. (-7.8), and Italy (-6.6). Because all these countries have a rather high ratio of governmental debt to GDP, their recoveries will be slower. Those least affected by the 2020 recession were Switzerland (-1.6), Netherlands (-2.5), Poland (-2.8), Russia (-3.1), and Germany (-3.9). As these are also economies with less debt, it is predicted that they should largely recover within two years.

  • Most of the major manufacturing technology exhibitions throughout Europe that are normally held in the first half of the year have been pushed to later in the year or to 2022. Scheduling could be a challenge as show grounds get booked for late summer and fall. The only major show still scheduled for the first half of 2021 is Metalloobrabotka, which will take place in Russia in May.

  • EMO, Europe’s most important manufacturing technology show, will be held in Milan, Italy, on Oct. 4-9, 2021. The show organizers, UCIMU, are strongly supported by the Italian government and are taking every step to ensure it will proceed as planned.

  • Italy is bullish on incentivizing its manufacturing recovery. The government’s 2021 budget extends significant tax credits for investments in new machine tools, robots, automation systems, and digital technologies. The credits cover up to 50% over two years. This makes EMO 2021 a significant opportunity to promote manufacturing technology to Italian end users.

  • More good news in aerospace from the small aircraft sector: European sales and leases of business jets increased in 2020 and continue to rise.

  • From its new $44 million facility in Bristol, the U.K.’s GKN Aerospace will lead a program to further develop its hydrogen propulsion systems for sub-regional aircraft. It will be focusing on performance, with the goal of enabling applications for larger aircraft and longer journeys.

  • Airbus has expanded its innovative additive layer manufacturing capabilities to produce components for satellites and space communication in large volumes, replacing a significant amount of assembly work.

  • A new infrastructure project has been announced in the U.K.: a 25-mile road-and-rail-link tunnel between Northern Ireland and Scotland. As the prime minister supports it, it has been dubbed “Boris’s Burrow.”

  • The circular economy concept has been gaining support in Europe, including machine tool usage. The concept of keeping machinery longer may lead to smaller demand for new machines but higher expenditures for new applications, especially through automation.

For more information, please contact Hubert Sawicki at hsawicki@AMTonline.org.

PicturePicture
Author
Hubert Sawicki
Head of AMT European Office
Recent international News
Europe shows resilience amid global pressures and declining export demand from China and elsewhere. Will interest rate cuts and strong private consumption improve the 2025 forecast for modest growth? For more industry intel and other tidbits, read on.
Despite Europe’s recent decline in industrial production in a challenging, complex landscape, investment opportunities in defense, semiconductors, and key industries point to a potential recovery in 2025. For more industry intel and other tidbits, read on.
Despite broader challenges and a downbeat outlook, the EU remains attractive, boasting some bright spots. Regardless of what comes next, business opportunities continually emerge across various sectors. For more industry intel and other tidbits, read on.
European markets face another challenging forecast due to uncertainties in trade with the United States and ongoing fiscal tightening. Will the region manage to avoid a recession? It seems likely. For more industry intel and other tidbits, read on.
Despite signs of improvement in recent months, Europe still faces both short- and long-term challenges. Will the region remain a valuable diversifier for businesses? Current investments suggest it will. For more industry intel and other tidbits, read on.
Similar News
undefined
International
By Arun Mahajan | Jul 09, 2025

Robust domestic demand, infrastructure development, and government initiatives reshape India's industrial landscape. Manufacturing output, especially in defense, and renewable energy production rise. For more industry intel and other tidbits, read on.

5 min
undefined
International
By Mike Lauer | Jun 24, 2025

Vietnam's economy is flourishing. With positive trends in FDI inflows and impressive GDP growth forecasts, the market is poised for business expansion. For more industry intel and other tidbits, read on.

5 min
undefined
International
By Arun Mahajan | Jun 10, 2025

With a much higher manufacturing PMI, India outperforms other developed and emerging markets. Key factors sustaining the country’s growth include strong private consumption and a robust service sector. For more industry intel and other tidbits, read on.

5 min