Last year, the trade deficit between China's machinery industry and the world’s recognized mechanical industrial powers Germany and Japan were as high as 49.2 billion U.S. dollars and 57.8 billion U.S. dollars, respectively; last year, the average export price of CNC machine tools in China was only 33,000 U.S. dollars per unit, while the import unit price was 219,000 U.S. dollars. USD/Taiwan, the unit price of export is only 15% of the import; “All these kinds of things have clearly told us that there is still a big gap between the technological level of China's machinery industry and the international advanced level.†The Chinese CNC machine tool industry faces many challenges In particular, for local Chinese companies, the combination of medium and low-end products, with price as the main means of competition, has little ability to resist risks and low industrial concentration. Even in this environment, there are still some new brands entering the market, showing the intense competition in the industry.
In 2012, the current competitive landscape of China's CNC machine tool industry has entered the stage of killing of high-end brands. The brand at this stage has been refined into medium, middle, upper and middle and higher market segments. In the mid-market, it mainly relies on price war. Operation becomes more and more difficult, leading many brands to start upstream development and strive to obtain more brand value and development space. The old brand companies began to enter into multiple industries and application markets while upgrading their existing fields. Through the strategic cooperation plan to achieve the integration of industrial chain resources, enhance the company's initiative, through the promotion of the brand and the market, the rapid implementation of the Great Wall upgrade.
By 2014, the demand for machine tools in the Chinese market will increase by 14.2% to 389 billion yuan. This strong growth momentum will consolidate China’s current status as the world’s largest machine tool consumer and producer. The supply and demand of the industry will benefit from the government's “Twelfth Five-Year Planâ€. The “Twelfth Five-Year Plan†specifically regards the machine tool industry as one of the strategic emerging industries (SEIs), which will receive government support and promote independent innovation.
High-end equipment manufacturing has been included in strategic emerging industries and will focus on nurturing development in the future. Advanced machine tool manufacturing is an important part of high-end equipment manufacturing, so the industry can obtain subsidies from the central and local governments for research and development. Sales of high-end machine tools can also benefit from tariff policies, which will increase sales of local products.
The major markets for machine tools in China are industrial machinery and equipment, transportation equipment, primary metal products and electrical and electronic equipment. Among them, as industrial machinery is widely used in various industrial fields, it becomes the largest market for machine tools. Due to the explosive development of the Chinese automobile industry, the manufacturing of transportation equipment has been the second largest market for machine tools in the past 10 years.
Metal cutting machine tools are the largest product category, and their size is three times that of metal forming machines. In 2014, the growth rate of demand for China's machine tool attachment market will reach 16.1%, faster than that of metal cutting machine tools and forming machine tools.
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