Machine tool leader shares 2025 trends shaping Southeast Asia's metalworking future

The metalworking industry stands at the crossroads of technological revolution and economic uncertainty. Amid this dynamic landscape, advancements in digitalisation, artificial intelligence (AI), the Internet of Things (IoT), and automation are reshaping manufacturing processes. Michael Schmid, CEO of UNITED GRINDING Asia Pacific, shares insights into how the machine tool industry is navigating these changes to deliver high-quality, cost-efficient, and energy-conscious solutions. From 24/7 unmanned production to flexible manufacturing capabilities, Schmid highlights the pivotal role of innovation in overcoming challenges and preparing businesses for the future.

According to Michael , the machine tool industry is moving towards advancements in digitalisation, artificial intelligence (AI), the Internet of Things (IoT), automation, and 24/7 unmanned “lights out” production. These developments aim for 100% in-process control, zero scrap, the highest quality standards, and optimal cost-performance ratios, while focusing on energy-efficient, environmentally friendly solutions.

Flexibility has also become crucial in the rapidly evolving industrial metalworking landscape.

Currently, many customers discuss these trends, with some larger multinational companies already following them. However, we observe limited enthusiasm among small and medium-sized enterprises (SMEs) to invest in such solutions, primarily due to funding challenges. Some growth-focused governments offer subsidies to help manufacturers increase competitiveness through novel solutions. Unfortunately, these subsidies are often underutilised for various reasons.

The situation is further impacted by economic uncertainties arising from conflicts in Europe and the Middle East, trade war concerns, and unpredictable trends in the automotive industry—one of the key drivers of our business in Southeast Asia.

Yet, we all know the world won’t stand still. We've put in significant groundwork and are here now with solutions in hand. We aim to support our customers in staying competitive, productive, and prosperous—both now and into the future.

Now is the right time to invest in modernisation to be ready when business rebounds.

“When we are too busy, we don’t have time for change.

Below are the solutions and innovations we've developed to help our customers navigate challenges, stay competitive, and emerge even stronger.

United Grinding consists of four technology groups and nine brands: Surface and Profile Grinding: Blohm Jung, Maegerle; Cylindrical Grinding: Studer, Schaudt, Mikrosa; Tool Grinding, Eroding, Lasering, and Measuring: Walter, Ewag; and Additive Manufacturing: IRPD (a promising area for the future).

We combine expertise from various technologies to create synergies across technology, software, digitalisation, customer care, innovation, and manufacturing, developing optimal solutions for our customers. With our extensive application knowledge, we offer comprehensive expertise across all fields.

While grinding remains our core competency, our capabilities extend much further.

R&D is essential to us. We continuously invest in R&D to ensure we provide innovative solutions that keep our customers competitive. This commitment remains constant regardless of economic conditions.

Today’s automation solutions are far more complex than in the past. In addition to in-machine automation like part and tool changing, we now have machine setup automation, in-process measuring, and compensation systems that allow 100% process control.

Machines have been advancing over the past 30 years, becoming individually “smarter” over time. Today, with IoT, we collect big data and create interfaces that connect machines, devices, quality control systems, databases, and ERP systems. Our goal has always been to achieve cost efficiency, streamlined workflows, optimised supply chains, and high-quality production. Now, we can accomplish all of this automatically, resulting in fewer human errors and lower resource and working capital requirements.