Market Report China: Decline in the Machine Tool Market
Affected by factors such as economic downturn at home and abroad, weak market demand and the amounting pressure of industrial transformation and upgrading, the machine tool industry of China was on a downward path in 2015.
In the last year the operating revenue fell 9.2 per cent from a year earlier and total profit plunged 43.5 per cent year on year. Specifically, the metal cutting machine tool has come down for four consecutive years, and the metal forming machine tool dropped sharply for the first time. It is expected that in 2016 China’s machine tool industry will continue to decline but the drop range is anticipated to be narrowed.
The Chinese Machine Tool Industry in Detail
Although it remains sluggish, the machine tool industry of China showed some new characteristics in 2015 as the industrial restructuring paces up. First, the structure of demand accelerated to be upgraded, with common machine tools seeing a significant decline but high-end products such as machining center rising. Then, the export market showed negative growth as a whole, but special processing machine tool and others still kept growing. Next, the support capability of functional components and so on was improved, and breakthroughs were made in the CNC systems.
Facing the harsh reality of the industry, Chinese enterprises are seeking strategic breakthroughs by means of, for example, innovation of products, extension of industrial chain, as well as cooperation between enterprises.