Machine tool manufacturer financing is the new direction

Abstract According to a recent survey conducted by Siemens Financial Services (SFS) among 80 machine tool manufacturers worldwide—representing 55% of global machine tool sales—asset financing has emerged as a key factor in enabling these manufacturers to supply new equipment to the market. SFS, a division of the Zimenzi Group, carried out this research between July and August 2013 across ten countries, including China, France, Germany, India, Poland, Russia, Spain, the United Kingdom, the United States, and Turkey. The study aimed to understand how financial solutions impact the machine tool industry's performance and customer behavior. The survey revealed that, in 2013, machine tool sales declined in most countries. For instance, despite an increase in orders from the U.S., sales still fell by 10.6%. One of the main challenges identified was the difficulty in securing new order financing, which was cited as a contributing factor to the drop in sales. A significant 84% of the surveyed companies reported that potential buyers struggled to obtain traditional bank loans for purchasing equipment. Moreover, 64% of the manufacturers indicated that asset financing had become more critical for their customers over the past two years. In the U.S., a notable year-on-year increase in sales in 2012 was largely driven by September, which marked the highest sales figure in the machine tool industry that year. Additionally, the survey highlighted the growing importance of equipment leasing. Fifty-five percent of the machine tool manufacturers noted that leasing projects were a major source of revenue for their customers. As a result, more and more machine tool companies are now offering integrated financial solutions to support their clients. Leasing and financing arrangements have become a popular alternative to traditional borrowing. Looking ahead, the demand for equipment-related financial services is expected to rise steadily, with projections suggesting continued growth by 2020. This shift underscores the evolving role of financial services in supporting the machine tool industry’s expansion and sustainability.