Six Characteristics in Machine Tools Industry in 2015

On Jan. 13, 2015, China Machine Tool & Tool Builders' Association made a summary to the industry developing trend in the past year and made prediction in 2015 by proposing six characteristics of the machine tools industry in 2015.

1. Heavy machine tools become the worst-hit area.

The rapid development stage of China's heavy chemical industry is witnessing its end. In the past decade, the rapid growth in energy installation, raw materials, infrastructure and real estate facilitated the development of China's heavy chemical industry.

2. Demand for low-end machine tools has declined.

The low-end machine tools here refer to non-digital controlled machine tools. Compared with 2011, this type of products have declined in production and sale. Another reason is the change in labor demand structure. Reversion in supply and demand structure of labor force has resulted in labor shortage.

3. Increase in export.

On the one hand, the overseas market has shown a consistent demand. On the other hand, China's domestic machine tools companies have increased investment in overseas market. The change reflects the global market structure. In recent years, developed countries' industrialization turned out a success. At the same time, other emerging economies, such as Vietnam, have an increasing demand for machine tools in China's domestic market.

4. Differentiation of industrial structure.

The machine tools industry has eight sub-industries. The main engine of machine tools can be classified into two types –-metal-cutting machine tools and metal forming machines. According to the statistics from January to November in 2014, in terms of output, the orders of metal-cutting machine tools declined by 4%, while metal forming machines increased 1.5%.

5. Differentiation of enterprise lineup.

Both huge groups and privately-run businesses have respective advantages. The former has a sound master of technologies and stable market. While the latter is more flexible in system and mechanism, which has become more and more influential. Traditional advantages are experiencing diminishing marginal utility.

6. Foreign-invested enterprises are adjusting at a fast speed.

Based on the statistics of the machine tools industry in the past few years, the overall situation was declining. In 2013, metal-cutting machine tools import decreased by 28%. In 2014, machine tools market growth was restored. From January to November, the machine tools import was $16,200,000,000, which was 8.8% increase. During the same period, market share of imported machine tools began to expand to 35.3%. the figure was 31.7% in 2013.