Future Growth Analysis of China's Machine Tool Industry

Chen Huiren, deputy secretary-general of the China Machine Tool Industry Association, said: "The major economic indicators of China's machine tool industry have declined, new orders have been significantly reduced, production and sales have dropped significantly, capital spending has risen sharply, manufacturing resources have become idle, and the contradiction between supply and demand has become even more prominent. The main features of economic operation.” He believes that the inherent contradiction in the capacity structure of the industry is even more pronounced. The already severe market homogenization competition is further aggravated, and China's machine tool industry is experiencing relative high growth after more than 10 years of continuous growth. Difficult to adjust the transition period.

Chen Huiren emphasized that: “Under the current situation, we must abandon the expectation of the government’s further launch of a powerful stimulus plan and give up the demand for a strong rebound in the low-end and mid-range markets because these are unrealistic and the industry needs a new one. The ideological emancipation and conceptual change of the revolution should consciously get rid of the path dependence on the mode of large-scale development and completely abandon the blind pursuit of rapid growth."

Under the influence of the current national "Twelfth Five-Year Plan", it is expected that by 2014, the Chinese market will grow by 14.2% to 389 billion yuan. This strong growth momentum will consolidate China’s current status as the world’s largest machine tool consumer and producer.

The supply and demand of the industry will benefit from the government's “Twelfth Five-Year Plan”. The “Twelfth Five-Year Plan” specifically regards the machine tool industry as one of the strategic emerging industries (SEIs), which will receive government support and promote independent innovation.

High-end equipment manufacturing has been included in strategic emerging industries and will focus on nurturing development in the future. Advanced machine tool manufacturing is an important part of high-end equipment manufacturing, so the industry can obtain subsidies from the central and local governments for research and development. Selling high-end machine tools can also benefit from tariff policies, which will increase sales of local products.

The major markets for machine tools in China are industrial machinery and equipment, transportation equipment, primary metal products and electrical and electronic equipment. Among them, as industrial machinery is widely used in various industrial fields, it becomes the largest market for machine tools. Due to the explosive development of the Chinese automobile industry, the manufacturing of transportation equipment has been the second largest market for machine tools in the past 10 years.

Metal cutting machine tools are the largest product category, and their size is three times that of metal forming machines. In 2014, the growth rate of demand for China's machine tool attachment market will reach 16.1%, faster than that of metal cutting machine tools and forming machine tools.