An actual state of the French Textile Machinery
TextileFuture has asked Evelyn Cholet, Director General of UTMF, the French Textile Machinery Manufacturers Federation to comment 2015 in view to the business development of the members and to give an outlook on the expectations for 2016. Here is her exclusive comment:
“In 2015, in most application sectors, the French textile machinery manufacturers are back to the best levels ever. Many have achieved record sales and order intakes but there is a lack of visibility in some major markets.
The economic uncertainty and financial turmoil, which we are currently observing in China may lead to a real slowdown. It is hard to tell whether the slowdown will accelerate, or whether growth and investments will rebound.
We are more positive about India, the modernization of the textile industry is crucial for its future but investments decisions are slower than we did imagine.
Other Asian markets stay active and the investment mood is still positive in many markets like Indonesia, Thailand, or
South Korea. However, the competitive devaluation of the Yuan, if amplified, may create a big challenge to these economies.
The Turkish market has been very active so far thanks to the long term managerial strategies of our Turkish customers but the 2015 economic slowdown, the current geopolitical uncertainties and the sharp decrease of the Turkish currency create some clear signs of wait and see.
Iran is the real short term opportunity for the European textile equipment. Modernisation is urgent, the entrepreneurs are in the starting blocks (we know that, thanks to the seminars we have organized there in 2015), the projects are well advanced, the international sanctions are over. But financial circuits will take time to regularise particularly as banks are still afraid by the penalties they got from the US Government.
The US economy is clearly growing, financing is abundant hence the USA should be a positive market for French textile machines. It is actually the case for some of our members active in specific applications like technical textiles, carpet manufacturing or recycling.
Key markets in South America, like Brazil or Argentina, are globally severely hurt by their lingering economies and political instability. We are particularly disappointed by the Brazilian market.
Markets like Western Europe, Eastern Europe or Central Asia are doing quite well but are not large enough to compensate for a sluggish China, should the market there decline significantly.
Altogether, after a positive 2015, we feel that in 2016 we are hitting a plateau, but it is important to remember, we are going to compare the next months with extremely good ones in 2015.”
We thank Evelyne Cholet for her clear, actual and exclusive assessment!