The expansion of the scope of large-scale equipment upgrades and consumer goods trade-in programs this year is expected to boost demand for machine tools, the China Machine Tool and Tool Builders’ Association said. The rapid growth of sectors such as new energy vehicles (NEVs), aerospace, shipbuilding, electrical appliances and artificial intelligence (AI) in China has also created new demand for the machine tool industry. “We are cautiously optimistic about the market demand for metal processing machine tools in China this year, and the overall operation of the machine tool industry is expected to be relatively stable,” said Wang Xu, Vice Chairman of the Association. “In particular, demand for metal processing machine tools is foreseen to continue its slight growth trend, but the differentiation between enterprises will become more apparent. Abrasive and grinding tool industries will still experience a period of demand contraction and structural adjustment,” Wang said.
With the technological progress of China’s machine tool industry in recent years, its level of technology and quality stability has significantly improved. While exports have been increasing on a yearly basis, the pace of import substitution is also accelerating, the Association said. In particular, export growth has played an important supporting role in driving the overall growth of the sector. Last year, the overall export growth rate of the machine tool industry increased by 2.8 percentage points compared to the previous year. Specifically, exports of metal cutting, metal forming, woodworking machine tools, as well as cutting tools and measuring instruments grew. Exports of metal forming and woodworking machine tools recorded double-digit growth.
“China has deepened global partnerships to mitigate overseas business risks and consolidate trade ties in the past few years. Some of the sectors where Chinese companies are making substantive steps in going overseas include machinery and equipment, parts and components, robotics and automobiles,” said Edward Tse, Founder and CEO of Gao Feng Advisory, a strategy and management consulting firm with roots in China.
As global manufacturing sectors move toward high-end, intelligent and green development, many industry players have actively integrated themselves into the global industrial and supply chains through various forms. Many domestic private enterprises, while actively expanding their export business, are also expanding their overseas footprint by establishing service organizations, and building assembly and production factories. Suzhou Sanguang Science and Technology launched its customer experience center in Vietnam in July last year; HSG Laser opened its exhibition hall in Busan, South Korea; and Wuhan-based HGLASER set up a subsidiary in Hungary, the China Daily reports.
