With an export quota of 95%, the German textile machinery industry is one of the highest export-oriented branches within the engineering industry. According to the VDMA Textile Machinery Association, in 2007 this sector exported machinery and accessories worth € 3.8 billion and saw the most successful year of this decade, however during the year 2008, the overall exports declined by 21% compared to the previous year. Due to this bad order situation, several companies already had to take drastic measures such as staff reductions and short-time work. Business with textile machinery always has undergone cyclical fluctuations, but what happens actually is the strongest slump since World War II, said Fritz P. Mayer, from VDMA Textile Machinery Association.

The production of textile machines and equipment in Germany amounted to more than € 6 billion, whereof €€ 4 billion went into exports. Based upon weak economic conditions within the most important markets, the industry had to go through a difficult year.  The uncertainty on the finance markets on the one hand and the dependence of the textile industry on state subsidies in many parts of the world on the other hand, impede a well-founded prognosis.

Despite the difficult economic situation, Germany has been able to defend its top position as the leading supplier of textile machinery. The annual turnover now reaches € 3 billion to € 4 billion covering about one-third of worldwide exports of textile machinery. German textile machinery is characterized by its high quality and customer-specific production. In recent years, China has developed into the main textile market in the world. Nonetheless, the German export rate to China increased by shares in nearly all sectors of the textile chain.

However, China was and still is the leading purchaser of German textile technology.

Spinning machinery remained the largest seller of German textile machinery industry with an export value of € 1,099 million in 2008, though it was increasing at a slower pace from 2005. The growth of knitting and hosiery machinery was declined to 8%, to reach € 1,024 million. Germany sold € 660 million of finishing machinery and € 254 million of weaving machinery. Export of German textile machinery is given in Table-1.

Asia the biggest market as it absorbed 47% of the German textile machinery exports in 2008. China is the single largest client in Asia. It alone purchased €779 million of the German textile machines in 2008, thus representing the largest export market for the industry. The second popular German textile machines were for spinning as Chinese / Hk bought € 322 million.  The 10 largest export markets for German textile machines and accessories in 2008 were China (including Hong Kong), India, Turkey, United States, Italy, the Czech Republic, Brazil, Saudi Arabia and Pakistan.

According to VDMA figures, in 2008 export of German manufacturers of textile machinery and accessories decreased by 21 % to  3,037 million. With more than half of the exports, Asia was the main export market for textile machinery with the share worth of €1,416 million.

More than 25% of the exports (€ 779 million) were sold to China. The second strongest market is USA, where machines worth € 234 million were purchased. The sales to India, ranked 3rd – decreased to 29.1% to €213 million. Italy pushed the USA (-5.4%) from the rank of 4th. Top 10 Market of German textile machinery exports is given in Table-2.

Germany is not only known for high-quality machinery, but also for excellent after-sale service all around the globe. In Germany, universities and technical colleges conduct intensive research in the fields of mechanical and textile engineering. As a result, new practical solutions for more modern technologies are explored and implemented in new marketable machinery. Today, there is hardly any area of life without the use of textiles.

 Automation construction, landscaping and medicine are just a few examples of the various fields of textile applications. However, the requirements are infinitely different from one another. By creating the so-called “smart textile”, most of these demands could be fulfilled, and German textile technology contributes to a large extent to this developments. Delivering their products to more than 150 countries, most German companies have already established local subsidiaries and manufacturing facilities in many foreign markets. Their main purpose is direct contact to their customers and flexibility to react faster to the ever-changing trends in the textile world.

This proximity to the target markets guarantees the best preconditions for fast deliveries of tailor-made plants and flexible system solutions. This innovative character of production enables customers to produce competitive textiles to prevail in the market. 

The trend setting player in the German Textile machinery has never stopped to explore new application fields which provide them with great opportunities.

Economic and Trade with Pakistan

Germany is third largest industrial country of the world and occupies and important place in global trade and finance. Germany is among 11 countries of the fifteen EU members, which joined the Euro Zone on January 1, 1999. Being the largest in size in Europe after Russia, the country is well poised to attract countries like Pakistan who are deficient in Forex Reserves and want to build economy on strong footing.

The German economy is heavily export oriented, with one-third of national output going to the external sector. As a result, exports traditionally have been a key element in German macro-economic expansion. Germany is a strong advocate of closer European economic integration, and its economic and commercial policies are increasingly determined by agreements among European Union (EU) members. At present Germany is one of the most important trading partners of Pakistan. It is the 4th largest importer of Pakistani products and the 7th largest supplier of goods to Pakistan. Trade between Pakistan and Germany is conducted in freely convertible currency in terms of the Trade Agreement signed in 1957. The total trade volume was over US$ 1.90 billion between the two countries during the year 2007-2008.

Germany is a good market for Pakistani textile products specially readymade garments, bed wear  cotton fabrics and knitwear. The main items of exports included cotton fabrics, towels, synthetic textiles, cotton yarn, carpets, bed wear, cotton bags and other made-ups textiles Besides textile and clothing articles.

Germany also imports a variety of other products from Pakistan, which include, leather clothing, leather gloves,  sports goods and surgical instruments. Export of textile items from Pakistan to Germany increased from US $477 million in 2005-2006 to US $663 million in 2007-2008. Export of textile and other major items from Pakistan to Germany is given in Table-3.

The Government continued to improve and rationalize its import policy with a view to allowing liberal imports of industrial raw materials, capital goods and essential consumer goods. These included usually high imports of machinery, chemicals and other raw materials.

From 1999 through to 2009 with the combined efforts of private and public sector, the textile industry made a rapid development and became the catalyst for industrial growth.

Total investment in textile industry is now being to $7 billion that has led to improvement in productivity, both in terms of quality and quantity, in yarn, fabrics, home textiles and garments. In the last five years, the textile operators imported more than US $ 2.48 billion worth of machinery. Import of textile machinery  (Major items) from Germany to Pakistan is given in Table-4 .

Acknowledgement:
VDMA. German Textile Machinery
Manufacturers Association.