Fiscal 2014 a record year for Engel
Injection molding machine maker Engel recorded its best ever fiscal year in 2014, generating revenue of more than 1 billion euros worldwide.
During a press conference at NPE2105, Engel management attributed this record result largely to an upswing of business in North America. The company also expects further growth in the region going forward.
“North America is currently one of the most dynamic markets worldwide,” said Dr. Christoph Steger, Engel’s chief sales officer. “The U.S. market is being driven by low energy prices and a renewed appreciation for keeping production in the country. High car sales figures and a healthy climate for consumers are leading to high investment levels in manufacturing companies.”
Engel has corporate headquarters in Schwertberg, Austria, and North American headquarters in York, Pa.
According to current forecasts, Engel management said, manufacturers of medical technology products in North America will invest 20 per cent more in machines, molds and peripheral equipment in 2015 than in the previous year. Engel is already capitalizing on this, they continued, noting that at present one out of every five Engel injection molding machines purchased in North America is being used for medical parts making. “According to the U.S. Department of Commerce, America makes up 38 per cent of the global market for medical technology devices and is therefore the largest market worldwide,” Steger said.
Another growing market Engel identified in North America is the packaging industry, which is also profiting from reshoring as well as from the trend towards high-quality functional packaging. “Particularly in the packaging market, replacement investments play an important role because processors can only maintain competitiveness by employing highly efficient injection molding solutions,” Steger said.
At present, Engel generates 22 per cent of its revenue in America, while Asia accounts for 17 per cent, Europe for 58 per cent and the rest of world for 3 per cent. The company was able to substantially expand its market presence in all regions over the last few years. “All told, the global markets continue to be stable even though political conflicts have weakened individual regions,” Steger said. “For example, Europe is currently suffering from a drop in Russia, which has been the third-largest market for Engel in the last couple of years. However, this drop can be compensated for by the growth in other markets.”