As the Machine tool industry comes under more pressure to control costs and the expansion of the European Union (EU) opens up new, more economical manufacturing locations, a growing number of machine companies are moving east. Indeed, Metalworking, machine tool and automotive production has been and continues to be transferred to Central and Eastern Europe (CEE)—with the Czech Republic, Hungary, Poland, Romania, Slovakia and Slovenia attracting the bulk of this investment.

CEE is attractive for the Machine Tool industry to set up production facilities for numerous reasons chiefly among these would be lower labor costs, relatively cheap land resources, well educated work force, more flexible working conditions, Access to funds from the EU, ERBD, EIB to supplement inward investment in the manufacturing ability of Central and Eastern Europe companies

Germany the powerhouse of manufacturing machine tools is the largest gainer in the economical development of the CEE region. Due to the geographical advantage of German companies towards the Central and Eastern European region there’s record levels of investment from Germany companies setting up production in CEE and in joint ventures with established CEE manufacturers of machine tools.

There has long been a tradition of manufacturing of machine tools with in the Central and Eastern European region. However companies in countries such as Poland, Czech, Hungary, Russia, Slovakia tend to produce lower end quality which is more comparable with suppliers from India and China then the higher quality Machine Tools produced by counties suchs as Germany, Japan, Italy, UK, USA, Taiwan and South Korea so there is still a high demand for suppliers from these high quality Machines tools suppliers who wish to Develop there business in the Central and Eastern Europe region.

German exports of machine tools to the newly industrialized counties (NICs) has increased over the last 7 years by an average of 16% and a large percentage of this increase for the machine tool industry is due to the above average increase from the Central and Eastern European region. Russia has seen increase’s by 42% in 2009 , Slovakia 39%, Romania 35% , Poland 19%, Czech 16% so CEE justify the attention of any quality producer of machine tool’s . For Western European manufacturer of machine tools the market should be of particular interest but there are still excellent opportunities for US and Quality Asian suppliers.

As with any fast moving market knowledge in the region is key to success and finding a good local agents, trade partners or distributor's is the fastest and safest route to market. Above all in Central and Eastern Europe this aspect is especially significant, since the general conditions vary enormously between the individual markets being targeted, Language, customs and experience in international trade practices. Machine tool manufacturers wanting to be successful in set up or increasing their business activities in Central Eastern Europe must take into account the fact that there is a huge diversity not only of economic situations and specific market conditions, but also of business customs and practices and of cultural requirements.

Some examples of companies doing successful business in Central and Eastern Europe would be:

Renishaw have been rapidly increasing there machine tool solutions productivity in Russia and they have offices in Moscow, St Petersberg and Perm they see the Russian and the whole CEE region as great opportunities not just as a manufacturing based but as a good market to sell to. To aid with there reach and communication with business across the region they now have dedication language sections on there site in Russia, Polish and Czech.

Fanuc and Siemens lead the market the market for CNC technology into CEE and in fact they control over 35% of the market between them

ISCAR the full line supplier of precision carbide metal working tools see strong growth in Eastern Europe and Russia for new technologies especially for cutting tools. The CEE countries are investing in new machinery and if they want to complete globally on the world markets then they have to have high quality machine tools to improve there overall.

Mori Seiki is another company which has fought hard to win market share in the machine tool industry in Central and Eastern Europe see this as an important market for its success across Europe. Getting in to the market needs strong product development and production systems and working in hand with your local partners and trade partners to ensure the development meets the demands in the local market. We have to reliable trade partners in the market as they are oxygen to help grow are business across the CEEs region.

Developing your machine tool business in Central and Eastern Europe is where CeeIndustrial can save you a lot of time and expense featuring your companies information on the leading marketplace dedicated to the CEE region by directly connecting to potential local agents, trade partners or distributors across the region in English or the native languages of the CEE region. CeeIndustrial has over twenty years in introducing companies from across the world to the Central and Eastern Europe region and we are strong in all industries and the machine tool industry is a leading industry us. We match what’s needed in the market to companies who can supply the Machine Tool technology that is needed across the CEE region.

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