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POWTECH TECHNOPHARM: Price explosion for machines and components makes calculation more difficult
Whether powders, solids or liquids – the relevant technologies, machines and components have been on display at POWTECH TECHNOPHARM for many years. Recently, the prices for this technology have developed very dynamically. 2025 is also likely to be an exciting year.
Production machines for processing powders, bulk materials, liquids and pastes, but also services for installation and repair, have become significantly more expensive since 2021. For reference (blue line), the development of electricity prices in Germany.Until mid-2021, the world of machinery was still stable in terms of price development. Filling machines became almost seven per cent more expensive between January 2014 and June 2021, according to the Federal Statistical Office. Since prices rose largely in a linear fashion, plant manufacturers and their customers were able to calculate their projects relatively easily and extrapolate into the future. But that came to an end in mid-2021. Since then, costs have been rising at an unprecedented rate. In January 2024, investors had to pay 17 per cent more than in July 2021 to commission a new filling machine.
Inflation began before 2022
Inflation has also affected the mechanical engineering industry. General price increases began in Europe at the start of 2021. The rapid economic recovery after the coronavirus-related slump in 2020 led to increased demand for industrial products and energy. What was initially seen as a temporary phenomenon and the aftermath of the pandemic intensified further in 2022: the Russian attack on Ukraine in spring 2022 and the interruption of oil and natural gas supplies led to energy price inflation, which continues to influence material prices today. In particular, electricity became extremely expensive in Germany and Europe in 2022.
But it is not only energy and materials that have become more expensive; services have also increased significantly. In December 2024, the installation of machines cost around 16 per cent more than in 2021. Services related to the maintenance and repair of machines even became 18 per cent more expensive.
Fluctuations in mixers and components
The price development of typical machines, such as those shown at POWTECH-TECHNOPHARM, is also interesting: mixers became 23 per cent more expensive between June 2021 and June 2023, but then fell by three per cent in the following year, only to rise again by two and a half per cent in the second half of 2024. Strong fluctuations can also be observed for pipes and fittings. Within a year (July 2021 to August 2022), their prices rose by 27 per cent. This was triggered by the increased material prices due to catch-up effects, energy price inflation and supply bottlenecks. These price increases affected not only steel but also plastics: the prices for PE, PP and PVC rose sharply as early as the first quarter of 2021.
The price development of classic plant components such as compressors, vacuum pumps and pumps is also interesting. Here, different dynamics are emerging: compressors became almost 15 per cent more expensive between July 2021 and June 2023. During the same period, prices for liquid pumps rose by 21 per cent and for vacuum pumps by as much as 25 per cent.
If we look at the plant components, we see a significantly different dynamic for mixers, dryers, compressors, pumps and vacuum pumps. For reference, the development of electricity prices in Germany (brown line) and of mining products (light blue line).The price devil is in the details
The different development of classic production machines and apparatus is also remarkable: While dryers for chemical products and plastics have become almost 15 per cent more expensive from 2021 to December 2024, mixers increased by 22 per cent in the same period. To put this development in relation to products from the POWTECH environment, a comparison with typical bulk materials from the mining sector helps: these became almost 34 per cent more expensive over the same period.
These developments show that it has become significantly more difficult for operators and plant manufacturers to calculate their projects. It is often the case that several years pass between the offer and the delivery and commissioning of a plant. Depending on the project, the machines and apparatus used can account for a vastly different share of the total costs – so it is worth taking a close look.
