Demand for Czech forming and machine tools has fallen sharply, with exports dropping by 30 percent and imports by six percent in the first half of this year. According to Ivo Červenka, Director of the Association of Engineering Technology, the decline stems mainly from Germany’s economic stagnation, which accounts for a quarter of Czech exports, and from the auto industry’s transition from combustion engines to electric vehicles.

The trend mirrors a broader European decline in machine tool production. “Combustion engines require many machined components, while electric motors rely mostly on pressed parts,” Červenka explained, highlighting the technological shift reshaping the sector. To adapt, Czech manufacturers are seeking opportunities in aerospace, energy, railway, and defense industries, Červenka said at the International Engineering Fair in Brno.

The industry is also facing new difficulties stemming from the Trump administration’s trade policies. In addition to standard tariffs, the rules now require machine tool covers to be made from U.S.-sourced materials, with non-compliance potentially triggering an extra 50 percent tariff on top of the existing 15 percent.

The Association of Engineering Technology represents 40 companies such as TOS Varnsdorf, Tajmac-ZPS Zlín, TOS Hulín, and Žďas, which together produce more than 70 percent of the country’s forming and machine tools. With long project lead times and tightening global markets, the sector faces a difficult period of adjustment.

Source: CzechDaily

Prepared by the team of foreign offices CzechTrade Osaka and Tokyo