Forward from International Metalworking News for Asia

 

After years of turbulence driven by pandemic disruptions, supply chain volatility, and energy price shocks, the metalworking industry stands at a critical turning point. By late 2025, signs of stabilization emerged: machine tool orders began to steady, automation investments gained renewed urgency, and companies turned their attention to building resilience through digitalization.

As 2026 approaches, global industry leaders from machinery, cutting tools, automation, and materials sectors share one sentiment—cautious optimism. Though challenges such as inflation, trade restrictions, and talent shortages persist, companies are positioning themselves for a year of transformation rather than recovery alone.

The following perspectives have been compiled from global industry leaders driving the evolution of modern metalworking.

 

MACHINE TOOL MAKERS: STABILITY BEFORE GROWTH

Karl Haeusgen, President, VDMA (Germany):“We expect a recovery to begin in 2026.”

The German engineering federation VDMA remains cautiously hopeful. Following a difficult 2024 and 2025, the organization projects that the coming year will mark the beginning of a slow but steady recovery, driven by renewed demand from Asia and the United States. Haeusgen emphasizes that digital retrofitting and energy-efficient equipment will play a vital role in restoring competitiveness across the European machine tool sector.

 

Nicola Leibinger-Kammüller, CEO, TRUMPF: “We believe that we have now reached the lowest point.”

TRUMPF’s CEO reflected on the cyclical nature of industrial demand in mid-2025, noting that capital expenditure had bottomed out, and customer inquiries were once again rising. With major investments in laser cutting, additive manufacturing, and smart factory solutions, TRUMPF anticipates a return to double-digit growth by the second half of 2026, particularly in Asia’s high-precision industries.

 

Alfred Geißler, CEO, DMG MORI:“DMG MORI is well positioned for the ongoing challenges.”

For DMG MORI, readiness is key. Geißler highlighted the company’s focus on automation modules, hybrid machines, and digital twins that enable predictive maintenance and production efficiency. By 2026, DMG MORI expects a larger share of its revenue to come from software and lifecycle services, showing how machine tool makers are becoming tech-driven solution providers rather than hardware sellers.

 

Takashi Yamazaki, President, Yamazaki Mazak:“I often watch the trend over three months to judge whether orders are recovering… shortening the production lead time is important for management.”

Yamazaki’s pragmatic approach reflects the pulse of Japan’s machine tool industry—careful monitoring, agility, and responsiveness. With investments expanding in South East Asia, Mazak expects Indonesia, Thailand, and Vietnam to become growth anchors in 2026 as manufacturers diversify away from single-market dependencies.

 

 

CUTTING TOOLS & INDUSTRIAL COMPONENTS: COMPETING IN TIGHT CONDITIONS

 

Sanjay Chowbey, CEO, Kennametal:“We expect market headwinds to continue throughout fiscal 2026.”

Kennametal’s outlook underscores persistent caution, particularly around raw material costs and industrial sentiment. However, the company is betting on portfolio diversification—especially in aerospace and energy—to offset slower growth in automotive and general engineering. Its investment in recycling carbide scrap and digital tool management solutions indicates how sustainability and productivity are becoming inseparable themes.

 

Norbert Hanke, EVP, Hexagon Manufacturing Intelligence:“The headwind was mainly due to the gap between tariff impact and price increases.”

Hanke pointed out that 2025 was a year of price pressure. For 2026, Hexagon expects relief as global supply chains normalize and demand for metrology software and simulation platforms strengthens. Hanke predicts that the fusion of measurement, design, and manufacturing data will redefine productivity standards in the next industrial cycle.

 

Sanjay Jejurikar, President, Sandvik Coromant (Asia Pacific):“Manufacturers are becoming smarter in managing tool data. The shift toward digital machining is irreversible.”

Sandvik Coromant foresees 2026 as the year when digital machining becomes mainstream, especially in Asia. Jejurikar notes that more customers are integrating cloud-connected tool libraries and AI-driven cutting strategies, reducing setup times and material waste while boosting sustainability credentials.

 

 

AUTOMATION, ROBOTICS, AND DIGITAL TRANSFORMATION

Roland Busch, CEO, Siemens AG:“Digitalization and sustainability continue to be our growth drivers.”

Busch’s statement captures the dual transformation defining modern manufacturing. Siemens has been at the forefront of implementing industrial edge computing and AI analytics in metalworking plants, enabling real-time insights and energy optimization. The company’s partnership with India’s Indofen Steel demonstrates how data-driven decision-making can enhance process stability and resource efficiency.

 

Seiji Kondo, Managing Director, FANUC Corp:“We cannot report forecasts due to numerous uncertain factors, including U.S. tariffs.”

While FANUC refrains from numeric projections, Kondo admitted that robotics demand has remained resilient despite macroeconomic headwinds. FANUC anticipates 2026 will see stronger orders from battery manufacturing, die casting, and precision machining sectors, driven by EV and automation investments worldwide.

 

Björn Rosengren, CEO, ABB Group:“The automation wave is no longer about cost—it’s about flexibility and talent.”

ABB believes 2026 will be defined by human-machine collaboration. As labor shortages persist, robots are expected to support—not replace—skilled workers. ABB’s focus on modular robotic cells allows SMEs to automate incrementally, a model that resonates strongly in Southeast Asian markets.

 

 

MATERIALS AND UPSTREAM INDUSTRY OUTLOOK

EUROFER (European Steel Association):“In 2026, apparent steel consumption is projected to finally recover (+3.1%).”

The steel sector’s rebound will underpin the metalworking value chain. EUROFER’s forecast highlights how infrastructure programs, defense spending, and re-industrialization initiatives across Europe will create sustained demand for flat and long steel products.

 

Oxford Economics / AMT (U.S.):“Projections for 2026 have doubled to 11%, indicating strong expansion.”

This bullish sentiment—shared during the AMT Winter Economic Forum—signals that the U.S. manufacturing technology market could enter a new growth phase. Equipment spending is projected to rise, with reshoring, automation retrofits, and aerospace retooling among the top drivers.

 

READING THE PULSE OF 2026

The consensus across companies is clear: 2026 will not be a return to the past but a reset toward smarter, cleaner, and faster manufacturing.
The year is likely to bring:

- Gradual recovery in capital spending, especially in Asia and North America.
- Stronger emphasis on energy-efficient machinery and digital services.
- Workforce transformation, as reskilling becomes an operational necessity.
- Sustainability-linked competitiveness, where carbon footprint and productivity are evaluated together.

In short, while optimism is cautious, it is also strategic. As one executive put it off-record: “2026 won’t be about surviving—it will be about redefining how metalworking competes in a digital world.”

 

DECEMBER 2025 • International Metalworking News for Asia 39