The global textile machinery market, which was growing at a fast rate in the recent past, has suddenly experienced a setback mainly due to the global economic downturn. The investment climate had been favorable to the textile machinery industry in the first six months of 2007. However, thereafter, the industry's growth had become slower, the culprit being global recession.
Imports and Exports
Both, imports and exports worldwide have declined. China, the largest importer of textile machineries reported a decline of 14% in its imports during the period Jan-Oct 2008 when compared with the same period in 2007. Germany, the world's largest exporter also experienced a major fall in the demand for textile machinery which was down by 12% in the first seven months of 2008 when compared to the same period in 2007.
Textile Finishing Machinery Market
Emerging Markets for Textile Machinery
China, India and Turkey had long remained leading consumers of textile machinery. However, other major consumers, namely Germany, United States and Switzerland placed fewer orders for textile machinery as compared to 2007. What had been surprising is the fact that developing countries namely Brazil, Egypt and Bangladesh Have emerged as strong markets for textile machinery. As per the ACIMIT report, the orders from Brazil were up 22% and that of Russia increased by 59%.
Current Status and Future Prospectives
The downward slide is continuing well in 2009. Current credit crunch and demand for more guarantees by banks for providing credit lines along with other reasons have made the investors cautious. Going by the market experts, there is no sign of recovery of global textile machinery industry in 2009. Reasons given for such state are the uncertain financial markets and dependence of the textile industry on state subsidies in many countries of the world.
However, what is expected by the industry is to maintain the growth if not further rise in demand for textile machineries globally. The growing Asian textile industry is the key factor that can renew the business of western textile machinery manufacturers as well as local competitors. Also, there is a considerable rise in the demand for nonwoven disposable textile products like filters and tissues. This factor will also lead to growth in textile machinery market. It will be particularly relevant in the emerging economies such as China and India, where nonwovens are seeing great business opportunities due to the growing prosperity in these countries. Also due to the immensely growing popularity of eco- friendly fibers, such textile machinery that help in their production, for example, cold pad-batch dyeing machine that uses a more environmental friendly technique for coloring knit fabric, will see a good growth.