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, thanks to the rapid and effective implementation of the policies, the China Machine Tool and Tool Builders' Association said.
The rapid growth of sectors such as new energy vehicles, aerospace, shipbuilding, electrical appliances and artificial intelligence in China has also created new demand for the machine tool industry, according to the association.
"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 growth rate of the previous year, data from the association showed.
Specifically, exports of metal cutting, metal forming, woodworking machine tools, as well as cutting tools and measuring instruments grew. Exports of metal forming machine tools and woodworking machine tools recorded double-digit growth, the association said.
"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 Co, 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.
For many domestic private enterprises, while actively expanding their export business, they are also expanding their overseas footprint by establishing service organizations, and building assembly and production factories.
Suzhou Sanguang Science and Technology Co Ltd, a Suzhou, Jiangsu province-based company, launched its customer experience center in Vietnam in July last year, underlining its intent to leverage the international market.
In October, HSG Laser, a Guangdong-province based company that focuses on the research and development of metal forming equipment, launched its exhibition hall in Busan, South Korea.
Meanwhile, in October, HGLASER, a Wuhan, Hubei province-based firm and a major provider of laser equipment and intelligent manufacturing solutions, launched its subsidiary in Hungary, which helped the company to expand business in Central and Eastern Europe and the entire European market, it said.
Late last year, Zhuzhou Cemented Carbide Cutting Tools Co Ltd, a company based in Zhuzhou, Hunan province that makes tool holders, solid carbide drilling tools and end mills, set up a joint technical service station in Bangkok, Thailand.
The association plans to organize the 19th China International Machine Tool Show in Beijing from April 21 to 26, the largest machine tool industry expo globally, where future technological development trends of the global machine tool industry will be showcased.
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