Machine tool manufacturer financing is the new direction

Abstract According to a survey conducted by Siemens Financial Services (SFS) among 80 machine tool manufacturers across the globe—representing 55% of total global machine tool sales—asset financing has emerged as a critical enabler for manufacturers in supplying new equipment to the market. SFS, a division of the Siemens Group, carried out this research between July and August 2013, focusing on 10 key markets including China, France, Germany, India, Poland, Russia, Spain, the United Kingdom, the United States, and Turkey. The study aimed to understand how financial solutions influence purchasing decisions and market performance. The survey revealed that machine tool sales declined in most countries during 2013. For example, despite an increase in orders in the U.S., sales still dropped by 10.6%. One of the main challenges identified was the difficulty in securing traditional bank loans for new equipment. A significant 84% of surveyed companies reported that potential buyers struggled to finance purchases through conventional banking channels. Moreover, 64% of manufacturers stated that asset financing had become more important for their customers over the past two years. In the U.S., a notable year-on-year increase in sales occurred in 2012, largely driven by strong performance in September, which marked the highest sales volume for the machine tool industry in recent history. Additionally, the survey highlighted the growing importance of equipment leasing. Approximately 55% of machine tool manufacturers reported that leasing arrangements were a major source of revenue for their clients. The findings also indicate that an increasing number of machine tool companies are integrating financial services into their sales strategies. Leasing and financing options have evolved into viable alternatives for customers seeking flexible payment solutions. Looking ahead, the demand for equipment financing services is expected to rise steadily, with projections suggesting continued growth by 2020. This trend underscores the evolving role of financial services in supporting the machine tool industry’s expansion and customer satisfaction.