|  |  | Sector covered in the first phase 2002/03:Manufacture of Machinery and Equipment
 Focus of analysis The NACE classification of "Manufacture of machinery 
        and equipment" (29) is subdivided into seven groups. The ICT and 
        e-Business Market Watch focuses on the groups of industrial processing 
        machinery (that means codes 29.1, 29.2, 29.4 and 29.5) and of agricultural 
        machines and tractors (29.3): 
         
          | Code | Activity |   
          | 29.1 | Manufacture of machinery for the production and use 
            of mechanical power, except aircraft, vehicle and cycle engines |   
          | 29.2 | Manufacture of other general purpose machinery |   
          | 29.3 | Manufacture of agricultural and forestry machinery |   
          | 29.4 | Manufacture of machine-tools |   
          | 29.5 | Manufacture of other special purpose machinery |  Weapons and ammunitions (29.6) as well as domestic appliances 
        (29.7) are excluded of the analysis because of the following reasons: 
        Codes from 29.1 to 29.5 all concern manufacture of equipment for other 
          industries: these are all intermediate goods or factors of production 
          so that they all concern B2BWeapons and ammunitions include hunting and sporting fire-arms, as 
          well as products for military use (tanks, artillery, small arms, bombs). 
          The market structure of this sub-sector differs considerably from the 
          rest of machinery and equipment industry.This part of the industry is 
          very concentrated, with government often being the main customer and 
          demand largely determined by the evolution of the defence budgets. Due 
          to the high degree of strict confidentiality in this sectors, it may 
          also prove to be difficult to obtain survey interviews about the usage 
          and plans of using ICTs.Domestic appliances are products for consumers so that the market 
          is completely different from machinery and equipment for industrial 
          use. Therefore, domestic appliances are usually analysed as a separate 
          sector. Including them in this sector would practically mean to split 
          the survey and the reports into two distinct sub-sectors and make it 
          complicate to draw general conclusions. Machinery and equipment is one of the largest activities 
        in the European manufacturing economy, contributing about 10% of EU production 
        value and employing more than 10% of manufacturing workforce. Most manufacturers 
        are highly specialised and their production is often made for a narrowly 
        defined downstream industry. As a consequence, relatively small enterprises 
        can be international players in this industry, which is very much shaped 
        by small and medium-sized enterprises (<250 employees) in the EU. The 
        market can be subdivided into very standardised products characterised 
        by a high level of price-competition and custom-made products, from design 
        through to the training of the workforce. European associations 
        CECIMO - European Committee for the Co-operation of the Machine Tool 
          Industries; Avenue Louise 66, B-1050 Brussels, Tel: ++32-2-502.70.90, 
          Fax: 32-2-502-60.82, www.cecimo.be 
        Orgalime - European federation of national industrial associations 
          representing the European mechanical, electrical, electronic and metal 
          articles industries; Boulevard Auguste Reyers- 80, 1030 Brussels, Belgium; 
          Phone:++32-2-706-8235; Telefax:++32-2-706-8250, www.orgalime.org |  | 
 
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