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EU demand for gearboxes and geared motors set to slump

15 May, 2013

Sales of industrial gearboxes and geared motors in the Emea (Europe, the Middle East and Africa) region will fall by 4.2% this year, according to a new report from IMS Research, now part of IHS.

After sales of these products hit a record high of almost $5.2bn in 2011, the region’s economic troubles have taken their toll on the market, with revenues predicted to drop to around $4.9bn by the end of 2013.

IHS does not expect a recovery to begin in industries that are the biggest users of geared products – such as construction, mining and materials-handling – until after the financial climate in Europe stabilises. It predicts that Emea revenues from industrial geared products will improve slowly from 2014, with sales next year likely to be 2.5% higher than in 2013.

“Until the EU banking system is capable of becoming more lenient in lending, companies will struggle when it comes to initiating large-scale, multi-year projects,” says Paul Sundberg, IHS’ analyst for motors and mechanical power transmission. “The ongoing debt crisis and the lack of a resolution – with Cyprus also affected in the most recent events – will continue to weigh down any efforts toward job growth.”

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