A Brief Analysis of China's Machine Tool Industry in the First Half of 2016

In the first half of 2016, the industry's imports fell by 10.85% year-on-year, which was lower than the 18.18% year-on-year decline in 2015. The decline in import growth this year has narrowed.

The number of metal processing machine tools imported was 34,300 units, which was US$3.889 billion and the amount decreased by 7.57%. The processing center imported 11,900 units, which amounted to 1,504 million US dollars, and the amount decreased by 7.38%. Among them: 10,300 sets of vertical machining centers, 748 million US dollars, the amount decreased 15.95%; 1263 sets of horizontal machining centers imported, 606 million US dollars, the amount of growth of 13.75%; imported 6494 CNC machine tools, 1.451 billion US dollars, the amount decreased 6.23% . Among them, 1,730 CNC horizontal lathes, 172 million US dollars, the amount decreased by 16.67%; 129 NC gantry milling machines, 36.763 million US dollars, the amount decreased by 22.79%; 314 CNC forging or stamping machine tools, 123 million US dollars, the amount decreased by 42.13%; 390 sets of bending or leveling machines were used, with a value of 85.331 million US dollars, an increase of 29.55%; 753 sets of CNC machine tools, 75.953 million US dollars, a decrease of 16.13%; 2235 laser processing machine tools, a total of 320 million US dollars, a decrease of 6.93%; The numerical control device imported 292 million U.S. dollars, a drop of 4%; the gold machine tool spare parts imports were 205 million U.S. dollars, down 32.1%.

Decline in exports narrowed month by month, horizontal machining centers and laser processing machine growth

The industry's total exports in the first half of 2016 decreased by 7.26% year-on-year, a decrease from 22.24% at the beginning of the year.

Metal processing machine tools exported 1.395 billion U.S. dollars, a year-on-year decrease of 6.23%. The processing center exported 1459 sets of 69.145 million US dollars, the amount of which dropped 40.81%. Among them, 1,113 sets of vertical machining centers exported US$44,247,000, which was a decrease of 14.96%; 91 sets of horizontal machining centers exported US$13,044,000, an increase of 64.45%; CNC machine tools exported 14,100 units, US$430 million, and the amount decreased by 7.51%. The number of CNC horizontal lathes was 3,944 sets, with US$119 million, and the amount decreased by 17.93%; CNC machine tools exported 1,907 sets, US$68.716 million, and the amount decreased by 18.05%; CNC forging or stamping machine tools 1,117 sets, US$39.087 million, and the amount decreased by 23.16%. Exports of laser processing machine tools totaled 33,400 units, and 190 million U.S. dollars, an increase of 21.3%. The value of laser machine tool exports was 182 million U.S. dollars, down 34.22%.

On the whole, the import and export of the whole industry improved from the previous year, showing two characteristics:

First, the decline in import growth has narrowed since this year. The import of most products decreased, but the import of two kinds of products increased: the import of CNC bending or leveling machine tools increased rapidly; the imports of horizontal machining centers changed continuously during the previous year, and the import volume was large in each month this year, and the growth rate was fast, indicating that domestic The demand structure has changed.

Second, the decline in export growth rate has gradually narrowed. The export of most products decreased, but the export of two kinds of products increased: the export of horizontal machining centers grew rapidly, and the export of laser processing machines maintained a growth momentum, and the growth rate was faster. The export value ranked first in machine tool products.

market prediction

The latest issue of the "World Economic Outlook Report" released by the International Monetary Fund on July 19, 2016 predicts that the growth rate of the world economy will be adjusted to 3.1 this year given the uncertainties brought about by the "Brexit" referendum. %, 2017 was 3.4%, both indicators are down 0.1% from the April forecast. The report said that the British "Brexit" referendum brought many uncertainties to the world and the economic growth prospects have deteriorated, especially for European advanced economies. Although the UK’s economic performance in the first half of this year was slightly stronger than the group’s forecast in April, the result of the “Brexit” referendum in the UK led to a significant reduction in domestic demand. The report lowered the economic growth forecast for advanced economies this year from 1.9% to 1.8%. The report's economic growth forecast for emerging markets and developing economies this year remains unchanged at 4.1%. The report will increase China’s economic growth forecast by 0.1 percentage point to 6.6% this year and maintain China’s growth forecast for the next year at 6.2%. The report said that China’s recent policy support is the reason for the improvement of China’s economic outlook. The report also believes that the British “Brexit” referendum’s direct impact on the Chinese economy is limited.

At present, China has reached 14 free trade agreements with 22 countries and regions, especially the implementation of the China-South Korea and China-Australia FTA, which is conducive to expanding the exports of our products.

According to the Canton Fair Electromechanical Museum in April 2016, many companies have always paid great attention to R&D and innovation, product quality improvement and promotion of independent brand products in order to cope with the current severe situation; some companies have focused on market distribution, innovative R&D and marketing management. To carry out transformation and upgrading, and strive to enhance the competitiveness in the sub-industry.

From the analysis of the international market demand, the comparative advantages of some of China's machine tools and tools still exist, supplementing the gaps in some countries. At the same time, new competitive advantages have been gradually formed, and the ability of enterprises to resist risks, expand markets, and develop innovation has been enhanced. The Chinese government has issued a series of policy measures to support the steady growth of foreign trade, and the international competitiveness of Chinese enterprises will be improved. However, the serious overcapacity of certain products in the machine tool industry is more prominent, and the ability to develop and innovate is obviously insufficient. The production and operation of enterprises still face more difficulties. At the same time, due to rising labor costs in our country, as well as factors such as the rising prices of capital and environmental protection input factors, export costs have increased, which has brought many difficulties for further expansion of exports.

Industry trends

According to the requirements of the “13th Five-Year Plan” and the current import and export situation, it is recommended that the machine tool industry pay attention to the following issues.

1, adjust the structure, overcome difficulties, innovation and development. It should be noted that the majority of export products in the industry are low value-added and middle- and low-end products. According to the export amount, the export of metal processing machine tools (including machine tool spare parts) only accounts for about 30% of the total export volume of the whole industry, which is too low, and mainly depends on the export of non-metal processing machine tools, tools, and abrasives. Therefore, it is necessary to strengthen the development and innovation of metal processing machine tools. In particular, we must pay attention to the research and development of products with a large amount of imports in recent years, realize innovation-driven and improve international competitiveness. At present, some domestic enterprises have developed some high-end machine tools with the support of the relevant government departments, and have achieved results. It is still necessary to continue efforts and new products developed should be closer to the market demand.

2. Further develop international economic and technological cooperation, attach importance to the investigation and marketing of international market demand, and strive to expand exports. The current overall demand in the international market is not strong. China's machine tool exports to the United States and some developing countries are better, and exports to the EU, ASEAN, Japan, and some emerging economies and some developing countries are more difficult. Exports have generally declined this year. Therefore, developing countries should make efforts to promote the advantages of China's machine tool products, such as middle and low-end CNC machine tools, tools and so on. Some products that are in short supply in Europe and the United States, including some small and medium-sized processing machines, tools, and components that they do not need to produce, have actively carried out marketing and promotion work, and have continued to expand the market.

3. Emphasize the development and innovation of laser processing machine tools. In recent years, laser processing machine tools imported a large amount. The import situation is: 5,395 units in 2013, 660 million US dollars; in 2014, 5,334 units, 915 million US dollars; in 2015, 5,566 units, 721 million US dollars. In the first half of this year, it imported 2,235 units and US$320 million. The scale of imports is still large, indicating that domestic demand is very strong. Laser processing technology is widely used in metal sheet cutting, welding and other processes, with high precision, high efficiency, environmental protection and other characteristics. Domestic enterprises need to develop, innovate, and realize import substitution through various means.

4. Make good use of the country’s foreign trade policy support for import and export. On May 9, 2016, the State Council issued the "Several Opinions on Promoting Foreign Trade to Stabilize and Revert to Stability," and proposed policies and measures to promote the development of foreign trade innovation and strive to promote stability in foreign trade in five aspects. The first is to strengthen fiscal and financial support. For some mechanical and electrical products, the tax rebate is based on the principle of how much the amount is refunded; the second is to consolidate the traditional competitive advantage of foreign trade. Further improve the processing trade policy; the third is to cultivate new competitive advantages in foreign trade, support enterprises in establishing an international marketing network, build a number of overseas exhibition centers, distribution centers, wholesale markets, and retail outlets; and fourth is to optimize the structure of foreign trade. Support enterprises to build a number of export products "overseas warehouse"; Fifth, to further improve the foreign trade environment. Reduce the average export inspection rate and strengthen guidance on classification. The relevant companies should familiarize themselves with and make good use of these policies to develop import and export trade.

5. Trade along the “One Belt and One Road”. China's trade with the countries along the Belt and Road has developed rapidly. In particular, the five countries of ASEAN, India, and Central Asia (especially Kazakhstan and Turkmenistan) have a good momentum of development.

The China-Pakistan Economic Corridor cooperation between China and Pakistan (from Kashgar, Xinjiang, China, to Gwadar Port, in the west of Pakistan) has developed rapidly. A number of infrastructure projects have started construction.

Recently, China and some countries in Eastern Europe, especially Serbia, Poland, and Hungary, have made new progress in cooperation in production capacity, trade, and investment. We must strive to collect relevant information, actively participate in cooperation and expand exports.

Report details page: http://service.made-in-china.com/market-analysis/industry-analysis-report/697464.html

More reports: http://service.made-in-china.com/market-analysis/industry-analysis-report-1.html