Engel sees ‘indications of a positive trend' in 2025

For the manufacturers of plastics machinery, the market seems to be stuck in the proverbial rut. Not only were incoming orders down 16 percent in the first half of 2024 compared with 2023, but also the slump in demand has caused the sales figures to plummet.

One of the words most commonly heard to describe the situation is "challenging." A statement recently released by the VDMA Plastics and Rubber Machinery Association quoted Chairman Ulrich Reifenhäuser as saying: "We still have to wait a little longer for the turnaround."

He added: "The weak demand is affecting all markets equally, but the European domestic market in particular. Major markets such as China and the U.S. are also weakening considerably, although we are witnessing individual glimmers of hope at a lower level in Mexico and India."

With sales from January to August down 7 percent on the previous year, the association is having to revise its forecast downward for the current year, as the lowest point in terms of incoming orders has not yet been reached. The association's managing director, Thorsten Kühmann, said he expects a 10-15 percent drop in sales this year.

The recent interest rate cuts will ultimately boost the capital goods sector, but the lag in production means it will take until the middle of next year for the positive impetus to be reflected in sales, he added.

It's an opinion shared by Stefan Engleder, CEO at Engel Group (Booth A5-5203). Questioned by Sustainable Plastics about how his company, a major European manufacturer of plastics processing machinery, was faring under the current conditions, he was frank: "For Engel, 2024 has been a challenging year, as the plastics processing industry continues to face a difficult economic environment. The injection molding sector remains in a state of recession, with order volumes declining over the past two years. However, we anticipated this downturn and have been preparing for it."

Next year is expected to bring gradual recovery, with signs of a slight economic upturn already visible, he added.

"While we don't anticipate returning to pre-crisis highs next year, there are indications of a positive trend. A sustained recovery is likely to begin in the second quarter of 2025," he said. "Engel is focused on being prepared for this upturn, continuing to invest in modernizing our facilities and strengthening our customer partnerships globally."

He noted that there were signs that the economic situation in Europe is stabilizing, albeit slowly.

Engel, he said, is active in different regions around the globe, and elsewhere the situation is different. Regions like the Americas are experiencing positive growth, particularly in technical molding and the medical sector, driven by high demand for autoinjectors.

"But by contrast, the Asian market is recovering more slowly, with a focus on local solutions. Our global presence allows us to tailor our solutions to these diverse markets," he stressed.

Going by the signs, Fakuma 2024 is opening to what promises to be another successful edition. Although the concept of an in-person trade show may seem outdated, reality proves otherwise. The buzz created by the physical presence of peers, customers and competitors and the opportunity to meet, talk and network provide an energy that a virtual event cannot replicate.

For Engel, Engleder said, it's an important show to attend, especially now, in view of the significant challenges the plastics industry is continuing to face.

"These make it even more important for Engel to showcase that we are moving forward despite the economic pressures. Our motto here is 'get connected' — to communicate that we are looking forward to collaborating with customers to develop tailored solutions that ensure their competitiveness," he explained.

At Fakuma, Engel is demonstrating how its precise and efficient machine solutions, like the new e-mac 2440/500, can help customers optimize their production, especially in light of labor shortages and rising energy costs.

The new, fully electric e-mac 500 injection molding machine, with a clamping force of 5000 kN, on display features a high-performance clamping drive and the iQ motion control digital assistant. The machine is producing 4-liter containers using in-mold labeling, achieving faster cycle times and reducing energy consumption by up to 30 percent compared with hybrid or hydraulic machines.

The company is also showcasing the latest generation of its Wintec t-win machines, with more than 20 new options, including iQ clamp control, which optimizes clamping force to reduce scrap, energy consumption and tool wear, and iQ hold control, which adjusts holding time for faster serial production. Additional options, such as proportional valves for core pulls and servo valves for injection, will be available by the end of 2024. The t-win 5500-4900 will produce battery box lids and back panels from ABS.

Engel's innovations in automation and digitalization, such as integrated robots and digital assistance systems offering comprehensive monitoring, control and automatic process optimization with real-time feedback, are the company's answer to labor shortages and rising energy costs.

The advantages range from a streamlined production and error reduction, to providing quick access to crucial production data, ensuring long-term competitiveness, Engleder said. Key highlights include the setup assistant and the AI-powered Engel spare parts app. An example can be seen at the company's stand, where a tie-barless victory 160 producing fittings is demonstrating how the integrated digital setup assistant aids operators during tool changes, helping to minimize errors and to boost overall equipment effectiveness.

Given all the options available on the injection molding machines the company builds today, SP asked, have those offerings affected a customer's choice when deciding to purchase a machine or are there other factors that come first? And has that changed?

"Flexibility, adaptability and the ability to meet regional needs have become essential for our customers," Engleder said. "Engel's global structure, with independent hubs in Europe, the Americas and Asia, allows us to provide tailored solutions and high-quality support locally.

"Additionally, efficiency, cost-effectiveness and sustainability have grown in importance, as customers increasingly seek technologies that enhance productivity while reducing environmental impact. These priorities have become even more critical in recent years due to rising energy costs and stricter regulations," he added.

The focus on all-electric machines at Fakuma is not a coincidence, Engleder said. Continuous interest in all-electric machines in Europe is on the rise, largely driven by increasing energy costs and the demand for more energy-efficient, precise production technologies.

"All-electric machines like our e-mac gain traction as they provide significant operational cost savings, which is becoming a critical factor for businesses navigating today's challenging economic landscape," he responded.

Yet the most significant trend he has noticed in injection molding over the past three years or so has been the shift toward more sustainable and energy-efficient solutions, driven by the need to reduce costs and meet stricter environmental regulations.

"Automation and digitization are also playing a key role, with customers seeking ways to enhance flexibility and production output without increasing labor costs," he added.

That's if they can find the labor they need. The dwindling number of skilled workers and the dearth of new entrants into the technical profession are a challenge to industry in general, and the plastics industry in particular. Fueled by the ongoing labor shortages, demand for automation has continued to rise, said Engleder, with many businesses turning to automated solutions to maintain productivity and efficiency.

"However, there is also a growing gap in the skills needed to operate these systems. Engel addresses this by offering comprehensive training and support, enabling our customers to effectively integrate automation without needing specialized in-house expertise," he claimed.

Engleder pointed to the fully integrated systems, such as the Engel CC300, developed by the company that simplifies the process, making it accessible even for those with limited technical backgrounds. This is a trend that seems set to continue, enhanced by the burgeoning developments around artificial intelligence. It plays an integral role in Engel's product and process optimization.

"We use AI in systems like the iQ process observer to ensure optimal efficiency and quality control. Over the next five years, we expect AI to become even more integrated, especially in enhancing automation, minimizing downtime and further improving energy efficiency. However, we see digitalization and AI not as replacements but as complements to human expertise. Our approach is based on the synergy between human creativity and machine efficiency. This combination allows us to solve existing challenges in new ways while maintaining high safety and efficiency standards. AI can help address labor shortages by handling routine tasks and optimizing processes — but human experience remains irreplaceable," he concluded.

Engel

A5–5203