America's appetite for equipment falters - The World Machine Tool Output & Consumption Survey - Germany surpasses United States as world's largest mac

For the first time since 1993, the United States falls from the top rank among the world's machine tool consumers, slipping behind Germany. Fall-off in the domestic market clobber American builders, whose already-depressed output falls another 17 percent in 2001.

America's metalworking shops and factories acquired only $5.36 billion worth of machine tools during 2001 .That's 21 percent behind the $6.77 billion consumed during 2000, which was 5 percent below the 1999 level, which in turn was 18 percent below that of 1998.

And while Congress plays politics with needed economic-stimulus packages, other countries expand their investment in productive equipment.

Last year Germany boosted its purchases of lathes, presses, machining centers, and so on around 8 percent to $5.58 billion, putting it into the top slot among the world's machine tool consumers. (See Top Consumers table.) The last time that the United States was not the world's leading consumer was in 1993, when China's rapid industrialization made it surge ahead for a year before falling back to its third-place position.

This time, too, China made a substantial gain, as did Italy and France. Even Japan, which has been troubled with three recessions over the past decade, managed to boost its investment 9 percent in 2001, following a 6 percent gain the year before. Among the large consumers, South Korea and Taiwan showed significant declines last year.

The international statistics come from the World Machine Tool Output & Consumption Survey (WMTO&CS), conducted annually by Gardner Publications, Inc., publisher of this magazine. The study measures output, trade and consumption from major industrialized nations.

For all its slipping consumption, the United States isn't going to see a quick rebound. New orders, which predate consumption deliveries by anywhere from a week to many months, keep slipping, too. Orders for new machines, tracked by a separate series of monthly reports from the two machine-tool trade groups, fared very poorly last year. The latest US. Machine Tool Consumption (USMTC) survey of participating member companies shows December orders down 46 percent compared to December 2000. That put the total orders for the year 2001 at 34 percent below the previous year. Or, as Ralph J. Nappi, president of the American Machine Tool Distributors' Association, puts it, "December orders were indicative ofa year that the industry is happy to close."