CBI | Market Intelligence Product Factsheet Cloves in Germany | 1

CBI Product Factsheet:

Couplings in Europe

CBI | Market Intelligence Product Factsheet Couplings in Europe | 2

Introduction

Europe is home to many potential export partners in the form of importers and producers of couplings. China and India are

already established exporters of couplings to Europe. This is proof that Europe can be an interesting market for coupling

manufacturers from Developing Countries. Developing Country exporters could best target importers, but producers also

offer (subcontracting) opportunities.

Product description

Couplings connect two shafts in a mechanical system in a way to transfer motion from one to another. One part of the

coupling is fitted on the motor shaft; the other one on the driven equipment. The two parts are then bolted together. The

illustration below shows an example of a coupling applied between a motor and a pump.

Picture 1: Example of a coupling application

The couplings can be made of steel, cast iron, aluminium, and various alloys. The range of couplings is extensive;

generally, the whole range can be divided into shaft sizes and common applications. In this manner, they could be divided

as follows:

Table 1: Shaft sizes and common applications of couplings

Shaft size Common application

up to 25mm Motion control

up to 100mm General industrial

up to 200 mm Pumps for the process industry

up to 200+ Large industrial fans

up to 200+ / high performance Gas turbine generators and compressors

Source: Paul Selini (Power Transmission International), 2013

The couplings covered by this survey actually entail the whole range of couplings of Table 1. When ‘couplings’ are referred

to in this survey, this concerns the selection of products in Table 1, unless stated otherwise. Table 1 also shows the

Prodcom code used for the production and apparent demand statistics of couplings.

Table 1: Selected products, based on CN and Prodcom nomenclature

Subsector and

product group

CN code Prodcom code Description

Couplings

clutches and

shaft couplings

848360-20,80,91,99 29142630 clutches and shaft couplings

Source: Globally Cool, based on CN and Prodcom Nomenclature

Product specification

Specifications of couplings as required by European buyers are described below. Furthermore, Picture 2 shows an example of a coupling application;

Picture 3 shows a packaging example.

CBI | Market Intelligence Product Factsheet Couplings in Europe | 3

Material and design

Couplings are made of various materials such as cast iron, nodular iron, steel or stainless steel. There is a large variety of

coupling types; each has its unique features and areas of application. In general, there are rigid and flexible couplings,

each with their specific use and area of application. Secondly, the size of the coupling is as important as the type of

coupling. Furthermore, the service factor is an important requirement, while other factors such as speed, torque, and

perhaps dimensional requirements are the most common.

Labelling and packaging

Couplings can be packed in a carton or a wooden box, depending on the size of the couplings. The outer package should

include the brand name and type number. The package for ocean transportation is a wooden, steel or plastic pallet,

wrapped in plastic sheeting and sealed with metal strips. The size of the boxes depends on the customer requirements and

preferences and is also influenced by the weight per box and handling possibilities.

What is the demand for couplings in Europe?

Imports

Figure 1: Imports of couplings to Europe, by main origin, € million, 2010-2014

Source: Trademap

0

100

200

300

400

500

600

2010 2011 2012 2013 2014

Europe

Developing Countries

Rest of the world

CBI | Market Intelligence Product Factsheet Couplings in Europe | 4

Figure 2: Main importers of couplings, € million, 2014

Source: Trademap

Figure 3: Absolute Developing Country import growth 2010-2014, € million (countries in range of largest importers), of

couplings

Source: Trademap

European imports of couplings reached €743 million in 2014, following a fluctuating pattern in the previous years.

Average annual growth in 2010-2014 was 4.7%.

The Developing Country share in European imports reached a peak in 2012 of 9.5%. In 2013 it declined to 8.7% and

in 2014 increased to 9.1%. Still, most imports originate from intra-European sources (almost 75% of all imports). In

the coming years, the Developing Country share is forecast to reach 10%.

The leading importer is Germany (16% of European imports), followed by France (13%), the United Kingdom (10%),

Italy (9%) and Czech Republic (8%).

In terms of Developing Country imports, Italy is leading, ahead of Germany and the United Kingdom.

The import of couplings is expected to show some growth in the next few years, in the range of 1-3% per year.

0

10

20

30

40

50

60

70

80

90

Europe

Developing Countries

Rest of the world

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CBI | Market Intelligence Product Factsheet Couplings in Europe | 5

Leading suppliers

Leading suppliers of couplings to Europe are mainly developed countries. Only one Developing Country can be found

in the list of leading suppliers: China, in the 4th position (€44 million, 6% of total imports). Germany (€244 million),

USA (€66 million) and Italy (€65 million) are the top 3 suppliers. Czech Republic and France take 5th and 6th position.

A few other Developing Countries also export couplings to Europe: India (€13 million), Turkey (€4 million), Thailand

(€2 million) and South Africa (€2 million).

The list of leading suppliers is unlikely to substantially change over the next few years.

Exports

Figure 4: Exports of couplings from Europe, by main destination, € million, 2010-2014

Source: Trademap

0

100

200

300

400

500

600

700

2010 2011 2012 2013 2014

Europe

Developing Countries

Rest of the world

Tip:

Benchmark your company against your peers from China and India, and also against those from the leading

supplier countries. Several factors can be taken into account, such as market segments served, perceived price

and quality level, countries served, etc. One source that could be used to find exporters of couplings per country

is ITC Trademap.

CBI | Market Intelligence Product Factsheet Couplings in Europe | 6

Figure 5: Main exporters of couplings, € million, 2014

Source: Trademap

European exports of couplings showed continuous growth in the period 2010-2012. It was followed by a small drop in

2013. Exports increased again in 2014 reaching €1.3 billion. Average annual growth in 2010-2014 was 4.1%.

The Developing Country share in European exports varied from year to year, but moved in a range of 21-23%. Still,

most exports are destined for intra-European countries (50% of all exports). For the coming years, the Developing

Country share is forecast to remain relatively stable.

Evidently, the leading exporter is Germany, accounting for almost half of total exports from Europe. Italy is in 2nd

position (15%), followed by United Kingdom (7%) and France (5%).

German exports to Developing Countries are relatively massive; they represent more than 50% of European exports

to Developing Countries. Italy is in 2nd position (12%), followed by France (7%) and United Kingdom (5%).

Although dependent on many factors, as exports go to many countries and there are several competitors in the global

couplings market, European exports of couplings are expected to continue to grow over the next few years, between

1-2% per year.

Production

Figure 6: European production of couplings, 2010-2014, € million

Source: Eurostat Prodcom (2015)

0

50

100

150

200

250

Europe Developing Countries Rest of the world

1.650

1.700

1.750

1.800

1.850

1.900

1.950

2.000

2.050

2.100

2.150

2.200

2010 2011 2012 2013 2014

CBI | Market Intelligence Product Factsheet Couplings in Europe | 7

European production of couplings totalled €2.1 billion in 2014, after an average annual increase of 3.2% in the period

2010-2014. Production increased sharply after the dip in 2009, however after the peak in 2011 the years 2012 and

2013 were relatively weak. These 2 years were marked by a declining demand for electric motors, having its’ effect

on couplings sales too. The year 2014 was marked by a small improvement in production (+3.0%).

Germany accounted for 54% of total European production in 2014 with France, Italy and Austria following at large

distance. The average growth of production in Europe was mainly thanks to growing production in Germany, Austria

and France.

Production mainly takes places in western and southern Europe with only limited production in central and eastern

Europe.

Figure 7: Main European producers of couplings, 2014

Source: Eurostat Prodcom (2015)

Apparent demand

Figure 8: Apparent demand of couplings in Europe, 2010-2014, € million

Germany

54%

France

10%

Italy

9%

Austria

8%

United Kingdom

5%

Spain

5%

Netherlands

2%

Belgium

2%

Sweden

2%

Other

3%

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

2010 2011 2012 2013 2014

Tip:

Figure 7 reveals that in addition to Germany, there is also considerable production output in France, Italy and

Austria. The presence of producers in these countries offers subcontracting opportunities to Developing Country

exporters.

CBI | Market Intelligence Product Factsheet Couplings in Europe | 8

European apparent demand totalled €1.5 billion in 2014, after an average annual growth of 3.1% in the period 2010-

2014. After sharp growth in 2010-2011, which compensated for the huge drop in 2009 (which was the impact of the

financial crisis), 2012 was a very weak year with an average decline in demand across Europe (-8.5%). This drop was

the result of a sharp declining market for electric motors that year. 2013 was a relatively stable year while 2014 was

another year with a small decline in demand (-2.6%). This average decline was especially caused by a few countries

(Italy, Czech Republic and the UK), while most other countries experienced sound growth figures.

Macro-economic indicators

Figure 9: Real GDP, % change from previous year

Source: OECD Economic Outlook 96 database

The major determinant of couplings demand is industrial spending activity, which in turn is stimulated by economic

growth. As Figure reveals, GDP is expected to show continued growth year-on-year. Evidently, this is a sound basis

for continuous demand and import growth in the coming years.

The profitability of couplings imports is influenced by the €:US$ exchange rate, as many couplings sourced globally

are paid in US$. While previously the €:US$ exchange rate was not forecast to go beyond 0.80 until 2020, this did

happen in 2015, with an exchange rate of 0.90 in June 2015. This development has a large effect on the price level of

imports. Especially if this situation will stay for years, it will have a negative impact on the level playing field of

European imports paid in US$, versus local European production.

What trends offer opportunities on the European market for couplings?

Major trends for couplings are mainly related to product innovation, such as the development of couplings that take less

space by using optimised disc springs and new wear-free materials, or couplings with better performance, through

application of material with lower weight and better inertia characteristics. Cost efficiency also remains a key trend. For

more information, refer to CBI Trends for Couplings.

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2014

2015

2016

Tips:

In order to maintain their competitive position in the European market, Developing Country exporters should

strive for optimally efficient operations; so-called ‘operational excellence’. Elements that can help are: define KPIs

(Key Performance Indicators) that are SMART (Specific, Measurable, Attainable, Relevant, and Time bound), and

set up a KPI monitoring system to follow the performance of your organisation.

If you produce for the European market, make sure you remain competitive versus couplings produced in Europe.

CBI | Market Intelligence Product Factsheet Couplings in Europe | 9

What requirements should couplings comply with to be allowed on the European

market?

Requirements can be divided into: (1) musts, which are legal requirements you must meet in order to enter the market,

and 2) additional, non-legal requirements, which are those most of your competitors have already implemented, in other

words, the ones you need to comply with in order to keep up with the market.

You can find a general overview of the EU buyer requirements for motion control on the Market Intelligence Platform of CBI

including many tips for how to get more details or how to meet these requirements. A summary of the requirements for

couplings follows below.

What legal requirements must my product comply with?

For couplings, no specific legal market access requirements apply.

As soon as the coupling is part of a finished product, the exporter has an evident obligation: to export a safe product

to Europe.

For finished products, the “Liability for defective products (Directive 85/374/EEC)” applies. The Product Liability Directive

states that the European importer is liable for the products introduced to the European market. However, the

European importer can in principle pass on a claim to the producer/exporter.

For couplings in very specific applications, such as in a potentially explosive atmosphere, specific directives may

apply. In the case of the example mentioned, the coupling must meet the ATEX directive (Directive 94/9/EC).

Wood packaging materials used for transport (including dunnage) (Directive 2000/29/EC): Europe sets requirements for

wood packaging materials such as packing cases, boxes, crates, drums, pallets, box pallets, and dunnage (wood used

to wedge and support non-wood cargo).

Another packaging-related directive is the general directive on packaging and packaging waste. This directive prescribes the

marking of the kind of packaging material used and maximum levels of heavy metals in the packaging material.

For couplings, a low 2.7% duty is levied on European imports from third countries. Several countries benefit from a

preferential 0% tariff, for example Bosnia and Egypt. Note that it is only possible to claim a preferential tariff treatment

with a Certificate of Origin.

What additional requirements do buyers often have?

The customer’s main requirements will be related to the coupling itself; design, material, dimensions, and finishing

must meet the customer’s specifications. The customer will usually require shaft spacing specifications to comply with

ISO (or compliant) standards for machinery shafts.

In fact, these issues are key in the sample phase. If the customer accepts the samples and all other conditions are

agreed upon, the contract can be signed. After that, the main challenges of the suppliers are to deliver the products

according to the agreed specifications, delivery times and volumes.

For material requirements, the following can be said in general. The metal that is used must be covered by an

(international) standard and approved with a certificate. In a foundry or forge, the material must be melted or forged

in such a way that, after the casting process, the material meets the material standard, which can be stated in an

EN10204 - type 3.1 certificate. This type of certificate is internationally accepted.

The customer may also have testing requirements, such as NDT (non-destructive testing) surface (MTI or magnetic

testing, PTD or penetrant testing) and section (UT or ultrasonic testing and RT or X-ray testing) tests.

Some industries provide specifications or guidelines for the selection and design of couplings. One example is the

worldwide standard used in the petroleum, heavy duty chemical, gas industry services, and power industries. The

American Petroleum Institute’s API 610 (Process Pumps) and API 671 (Turbines) Standard offers a set of minimum

requirements for couplings applied in these industries. API standards can be bought on Techstreet. Note that you only

need to comply with such standards if so required by the customer.

Tips:

Refer to European legislation: Liability for defective products for more information.

Make sure that your wood packaging material qualifies for the European market. If you are not sure, ask your

wood packaging material supplier for clarity. Your wood packaging material supplier should take any further

action required in order to comply with the Directive. If the supplier is not able to do so, you can possibly switch

to another supplier.

Exporters from a country with a preferential 0% tariff have a small competitive advantage over competitors from

countries without such a preferential tariff.

CBI | Market Intelligence Product Factsheet Couplings in Europe | 10

Please refer to the EU Export Helpdesk, the ITC Market Access Map and the ITC Standards Map for more information

related to gaining access to the European market.

What do the trade channels and interesting market segments for couplings look like in

Europe?

Developing Country producers of couplings have two main options for entering the European market: importers and

producers of couplings. For more information, refer to CBI’s Market Channels and Segments for Couplings. A few examples

per type of prospects are given below.

Producers: Desch Antriebstechnik, Renk, and Vulkan (among the leading German coupling manufacturers), Cross and

Morse and Renold (United Kingdom; the latter is one of the world’s leading power transmission producers), Esco

Couplings (Belgium; one of the world’s five leading industrial flexible gear & disc types coupling manufacturers).

Importers: Challenge Power Transmissions and Coupling Services (United Kingdom), Multi Components and

Biesheuvel Groep (Netherlands), Lönne Scandinavia, Mekanex and Regol (Nordic countries).

For additional information on finding buyers, see the CBI document on Finding Buyers in the Motion Control Industry. Another

important resource is the CBI document on Doing Business in the Motion Control Industry.

What are the market prices for couplings?

To establish an export price, you need to consider many of the factors involved in pricing for the domestic market:

Aim to charge the price the market will bear and keep in mind the quality-price ratio of your products. It should be in

line with competitor prices;

Pricing is a mix of knowing your domestic costs and calculating costs you will incur in delivering and supporting your

activities in a foreign market;

Use contracts with variable material costs. It is important to set the reference index for the fluctuations in agreement

with the buyer. Use, for example, the steel index of the London Metal Exchange;

Bear in mind that it is not easy to increase prices once you have agreed to deliver at a certain price. The negotiated

price should never be below your cost price (except for the first order; in this context you may accept a loss if larger

quantities and thus lower costs are expected for the following orders). No European buyer will accept an

unreasonable/unexpected price increase after the first order;

The negotiated price depends on the delivery conditions, the means of payment, credit terms and currency risks,

quantities, and the means of transport;

Exchange rates fluctuate. Cover this risk by including the currency risk in the contract. This practice has been

accepted in international business transactions for a few years.

Another very important issue is the responsibilities and rights relating to the pattern and tooling. The following pattern and

tooling issues should all be covered in the contract: financing manufacture and possible repairs, guaranteed life time,

ownership, and storage.

Tips:

Coupling manufacturers must ensure that the coupling components are engineered to maximise the working life

of the machines to which they are coupled and to improve the integrity of the entire drive system in which they

are used. The accuracy of the couplings used is critical to the reputation of the original equipment manufacturers

and also to the end users who require longer mean time between failures of their machines.

The couplings produced should be designed to accommodate drive misalignment, absorb and withstand shock

loading, and to facilitate easy separation of the drive line for maintenance. Only the highest quality of cast iron or

steel should be used, as well as the latest generation polymer and composite technology. Also, coupling elements

made of rubber or polyurethane must be produced to the highest standards, as they are so critical to the life of

the coupling itself.

Tips:

Use contracts with variable material costs.

Include the currency risk in the contract.

Include the responsibility and rights related to the pattern and tooling in the contract.

CBI | Market Intelligence Product Factsheet Couplings in Europe | 11

Useful Sources

ABC Business Directories - business directory; type a keyword and search for companies. On the left there is an

option to filter your search, for example by country.

Article on the API 610 Standard - interesting details of the (relatively) new API 610 Standard.

Coupling Tips - online portal dedicated to the couplings industry.

Eurostat - official statistical office of the European Union. Following free registration, large data collections are

available.

Eventseye - trade show directory; search by country and industry for trade shows.

Hannover Messe - world’s leading annual industrial technology exhibition with numerous product-specific trade fairs,

held in neighbouring country Germany, Hannover, April. A dedicated MDA (Motion, Drives, and Transmissions) fair is

part of the Messe every odd year;

ITC International Trade Statistics - after registration, this source offers global trade statistics and also lists of

importers/exporters by product and by country.

Kwintessential - provides practical tips on business culture and etiquette.

Power in Motion - international magazine for power transmission and motion control, published 6 times a year.

CBI Market Intelligence

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marketintel@cbi.eu

This survey was compiled for CBI by Globally Cool – Creative Solutions for Sustainable Business in collaboration with CBI sector expert Malcolm Sheryn

Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer

January 2016