European Machine Tool Industry Cooperation Committee puts forward the New Deal

The EU economy is the world’s largest machine tool production base. The European Machine Tool Industry Cooperation Council (CECI鄄MO) has 15 member countries and covers the vast majority of EU machine tool manufacturers. Recently, CECIMO put forward to the European Commission a new industrial development policy for EU machine tools.

The 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.

CECIMO believes that the industrial competitiveness of European machine tools is based on advanced production technology, high R&D (research and experiment) expenditures, rapid innovation cycles and highly skilled workforce. The European machine tool industry is highly dependent on the customer investment cycle. This is also the reason why the financial crisis has hit the company.

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

According to CECIMO, in the short term, for European machine tool companies, especially SMEs with more than 80% of the total number, the most important thing 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.

It is reported that the European innovation plan currently 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.

Some scholars have pointed out that if market supervision fails, it will distort competition and hinder innovation. Therefore, CECIé„„MO proposes that the greatest incentive for machine tool manufacturers to innovate is to compete fairly in the EU internal market. Effective market supervision is crucial for strengthening cooperation among member states. Therefore, it is necessary to strengthen the regulatory system to promote the health, safety, and harmony of the various standards. This is particularly important for ensuring a fair and competitive market environment, and at the same time it can promote enterprise 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.

In addition, CECIMO also pointed out that in the fair competition on a global scale, it should ensure the elimination of non-tariff barriers and establish international standards. The effective cooperation between EU trade and industrial policies is very necessary.

Industry internationalization 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 power 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.

At present, CECIMO's 15 major machine tool manufacturing countries have 1,600 companies, of which 80% 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.