Group puts forward strategy for safeguarding mechanical engineering in Europe
'Unlike other industries, we went to the Commission and said 'there is not a problem, but we'd like to stay at the top',' said Adrian Harris, Secretary General of the European engineering industries association, Orgalime, at the presentation of a new report on how to keep Europe at the top in mechanical engineering. The report, EnginEurope, is the work of a high level group representing industry, science, trade unions and policy-makers, and makes recommendations intended to secure Europe's strong position in one of its core sectors. An analysis by the high level group found reassurance in Europe's experience and top class reputation, its broad technology basis, its sound infrastructure, and its entrepreneurship. 'This creates motivation, but is not a pillow to lie on,' said the chairman of the high level group, Professor Fritz Klocke from the Fraunhofer Institute for Production Technology. Professor Klocke's caution is well grounded: the report also highlights a number of weaknesses specific to Europe, as well as a handful of threats. Weaknesses include a risk-averse mentality, fragmented European markets, low labour mobility, and a lack of urgency. Threats include globalisation, asymmetric trade conditions, and an ageing population that is resistant to change. The report contains recommendations under four sub-headings: access to markets; employment and skills; research and innovation; and a strategic industrial and technological base. Under 'Boosting research and innovation', the report suggests that the Commission benchmark national research and development (R&D) financing practices, reduce bureaucracy by simplifying the two-stage application and evaluation procedure under the EU's Seventh Framework Programme (FP7), and reduce geographical requirements for participation in EU research funding programmes. 'An easy access for stakeholders in industry, especially SMEs [small and medium-sized enterprises] to research programmes is vital,' reads the report. The mechanical engineering industry would also like to see sufficient stimulation for innovation financing at European level, and the development of a Europe-wide venture capital market. The industry also recommends that the EU's Competitiveness and Innovation Programme (CIP) operate close to the needs of companies. On R&D funding instruments, the mechanical engineering industry requests: a simple and more generalised support system for SMEs involved in research, implemented through fiscal policy; the inclusion of a thematic priority dedicated to mechanical engineering in future EU research programmes; the inclusion of mechanical engineering in each sub-programme of EU programmes (except for the field of humanities); and ensuring that companies with 250 to 1,000 employees can participate. The EU Member States are also the target of a set of R&D recommendations. The high level group calls on them to establish internationally competitive taxation for R&D; to allow industry, and in particular SMEs, to design research programmes; and to stimulate innovation funding. Upon reading this long list of recommendations, one may assume that the mechanical engineering sector in Europe is in a bad way. This is however not the case, as the figures prove: mechanical engineering is one of Europe's largest industry sectors, with a share of some 8% of total EU manufacturing output. It is also one of Europe's largest employers, and counts some 24,500 companies employing 2.6 million people. Even more telling is that Europe still has 41% of the world market, and remains the world's largest producer and exporter of machinery. But, 'it is dangerous to think that there is no more to do because the order books are full,' warned Joachim Würmeling, State Secretary at the German Ministry of Economics and Technology. 'You have found that the order books are well filled. Now you've left us with an order book to fill,' he told the high level group's members. Representing the European Commission, Director-General of the Enterprise and Industry DG, Heinz Zourek, also cautioned the mechanical engineering industry against resting on its laurels. 'We have to build on our strengths, learn from our successes and watch that we don't jeopardise the sector.' The positive mood surrounding the launch of EnginEurope and Europe's mechanical engineering sector in general was embodied in Mr Würmeling's closing statement. 'I'm not worried about the future of engineering in Europe as long as we follow the motto of the German Presidency: 'Europe - succeeding together'.