Market Survey China: Analysis on Machine Tool Market 2017

| Editor: Franziska Breunig

The Association organizes the questionnaire survey about the responsible people of the machine tool sector in the first half of 2017 among the highly-relevant enterprises of the industry and major foreign companies in China. There are 136 copies returned, and the product sales revenue of related enterprises was about RMB 84.4 billion in 2016.

Measures
Measures
(Source: Information Statistics Department, China Machine Tool & Tool Builders’ Association (CMTBA ))

According to the industry prosperity index in the first half of 2017 calculated based on the questionnaire, the prosperity index of Chinese machine tool sector is 62.5% in the first half of 2017 that is above the boom line. And there is an increase of 8.6 % compared with the situation by the end of 2016, thus indicating a continuous expanding trend.

General condition

Since the second half of 2016, there is a recovery increase in the machine tool sector in general under the influence of market recovery and the progress of transformation and upgrading According to the data from the National Bureau of Statistics, the industry-wide sales revenue in the first half of 2017 is RMB 505.8 billion, with a year-on-year increase of 12.2%; and the total profit is RMB 31.5 billion, with a year-on-year increase of 23.6%.

According to the consumption condition of domestic machine tool market predicted by the Association, the consumption amount of metal-working machine (including metal-cutting machine tool and metal forming machine tool) in the first half of 2017 is USD 13.6 billion, with a year-on-year increase of 3.8%. The consumption amount of metal-cutting machine tool is USD 9 billion, with a year-on-year decrease of 2.2%; and the consumption amount of metal forming machine tool is USD 4.6 billion, with a year-on-year increase of 17.9%. The consumption amount of tools (including cutting tool and measuring tool & measuring instrument) is USD 2.5 billion in the first half of 2017, with a year-on-year increase of 25.0%. Broadly speaking, there is a slight increase in the consumption of machine tool in the first half year. But for the slight decrease in the consumption amount of metal-cutting machine tool, it arises from the joint influence of RMB exchange depreciation, even gross domestic output, export growth and import decline.

Gallery

Problems to be concerned and proposals

In the second half of 2017, the pressure of economic operation is still staying at a high level. As a result, the investment fluctuation and the uncertainty will throw a direct influence on the operation of machine tool enterprises in the next half year. According to the questionnaire survey to foreign-funded enterprises in the machine tool sector, the prominent problems in the current enterprise operation arises from nine aspects: Similar product competition (14.4%), market demand shortage (13.4%), excessive operation cost (12.3%), human resource shortage (9.9%), human cost growth (9.0%), insufficient production capacity (7.8%), insufficient international market development (5.4%), market demand upgrading (5.2%), and insufficient market development (3.5%). According to the data mentioned above, the market-related ones among those major problems restricting the enterprise development account for 41.9%, the operation and cost-related ones account for 20.1%m and the HR-related ones is 18.9%.

At the same time, the questionnaire also indicates the corresponding measures an enterprise takes to handle the above problems. Additionally, the distribution of those measures is basically consistent with the tendency features in the recent market and industrial operation. The major measures enterprises take involve the following six aspects: Cost control (22.6%), improved input in R&D and technical modification (17.9%), enhancement of segment market development (16.0%), introduction & development of new product (12.4%), efficiency increasing by downsizing staff (8.1%), and production capacity expansion (7.9%).

In conclusion, the forecast result of the consumer market and industrial operation of machine tools this year is slightly higher than the value at the end of last year. Simultaneously, given the uncertainty of the economic environment and changing market demand in the next half year, it is predicted that there will be a slight year-on-year or flat increase in the consumption amount of machine tool in 2017. (Information Statistics Department, China Machine Tool Builders' Association)

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