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 B2B
  • Weapons 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,
  • 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,