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Manufacturers Confidence and Machining Wages Rising

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For the first time in many months business confidence in Europe is on the up at the start of the 2nd quarter of 2016. Even better news comes from The Netherlands where for the first time since 2008 a majority of machine shops owners has a positive outlook on the future and expects to invest both in new machinery and hire new people in the next 12 months.  A report of the industry association for Metal Machining Workhops shows an acceleration in the pace at which machine shops renew their machine park. Apart from new technologies the report shows an increased focus in lean production techniques to improve planning, control and quality.  

In spite of the growth in the machining business, finding personnel to operate machines remains a challenge for machine shops. Wages in the machining sector are 25% to 30% higher than in other sectors due to the scarcity of qualified personnel, a situation that is repeated in many other European countries. Although scarcity is an issue, machine shop owners do not see wages as a problem and plan to invest more in CNC training to increase the skill levels of their work force.