The demand for Czech forming and machine tools has declined significantly, with exports plummeting by 30 percent in the first half of this year, while imports fell by a modest six percent. This downturn, as reported by Ivo Červenka, Director of the Association of Engineering Technology, stems primarily from Germany’s economic slowdown—the destination for a quarter of Czech-exported machines—and the automotive industry’s pivot toward electric vehicles over combustion engines.
This trend isn’t isolated to the Czech Republic; machine tool production is declining across Europe as the automotive industry increasingly shifts toward electric vehicle manufacturing. “In combustion engines, numerous components are produced using machine tools and processed on grinders or milling machines. For electric motors, practically nothing is machined—most components are pressed,” explained Červenka, highlighting the technological shift driving this decline.
The Czech engineering sector, heavily dependent on exports, must now seek alternative industries for its products. “We’re exploring opportunities in aerospace, energy, railway transportation, and the defense sector,” Červenka noted at the International Engineering Fair in Brno, which runs from Tuesday through Friday.
Adding to the industry’s challenges are new complications from the Trump administration’s policies. Beyond basic tariffs, there are specific requirements such as mandating American-sourced materials for machine tool covers. Failure to comply could result in an additional 50 percent tariff on top of the base 15 percent, further complicating export prospects.
The Association of Engineering Technology represents forty companies that collectively account for over 70 percent of machine and forming tool production in the Czech Republic, including prominent firms like TOS Varnsdorf, Tajmac-ZPS Zlín, TOS Hulín, and Žďas. As an industry characterized by long lead times—with months or even years between order and delivery for larger projects—the sector faces significant adaptation challenges in an evolving global market.
