China's CNC Machine Tool Industry in Strategic Development Period

CNC machine tools are the mainstream products of the machine tool industry. Driven by the demand, the output of CNC machine tools in China has maintained rapid growth. In the past five years, the average annual compound growth rate of China's CNC machine tools production was 37.39%. The average annual compound growth in the past 10 years was 29.94%, and the compound growth in the past 15 years was 22.10%. In 2010, the consumption of CNC machine tools will exceed 6 billion U.S. dollars and the number of machines will exceed 100,000. CNC machine tools have become the mainstream of machine tool consumption. China's future market for CNC machine tools is huge.

1. China's CNC machine tool industry is at strategic development stage

The key to the economic development of the “Eleventh Five-Year Plan” is to realize the transformation of the economic growth mode. The advanced manufacturing industry is the transformation direction of the traditional manufacturing industry. The traditional industries such as automobiles, machinery, household appliances, textiles, agricultural machinery, and environmental protection industries are technologically transformed. The demand for CNC machine tools continues to climb; the development of high-tech industries such as electronic information, bio-engineering, and new energy and new materials has opened up new demands for precision, high-efficiency, and dedicated CNC machine tools; from the perspective of regional development, the upgrading of China’s eastern industries has been The rejuvenation of old industrial bases and the development of the Midwest accelerate the pace, providing domestic markets for the development of CNC machine tools; economic globalization, the transfer of international capital and industries to China, the exchange of international technology and talents, and the strong development of China's international trade, etc. , Providing an external environment for the development of China's CNC machine tool industry, so that we are in a rare strategic development period.

2. The national policy to revitalize the equipment manufacturing industry ensures a higher safety margin in the industry

Since entering the “Eleventh Five-Year Plan” period, the state has successively promulgated the “Several Opinions on Accelerating the Revitalization of the Equipment Manufacturing Industry” and the “National Medium- and Long-Term Scientific and Technological Development Plan.” In response to the impact of the international financial crisis, the State Council has issued a National Equipment Manufacturing Revitalization Plan. Under the national policy of revitalizing the equipment manufacturing industry, the state has introduced a series of policies to support the industry. Industrial policies, import and export policies, and taxation policies have all greatly promoted the sustained and rapid development of the machine tool industry in recent years. The benefits that the policy brings to the company have led to a substantial increase in corporate profits. The strong support of the policies has given the industry special advantages. It has ensured the rapid development of the industry and a relatively high safety margin to some extent.

3. China's CNC machine tool industry is a newly emerging strategic industry supported by the country and promotes economic restructuring.

On September 8, 2010, the State Council held an executive meeting to deliberate and pass the "Decision of the State Council on Accelerating the Cultivation and Development of Strategic Emerging Industries." High-end equipment manufacturing, energy conservation and environmental protection, a new generation of information technology, biology, new energy, new materials and new The seven industries of energy vehicles will focus on accelerating their progress as the key areas, and the state will strengthen the support of fiscal, tax, and other policies. Feng Fei, Minister of Industry of the Development Research Center of the State Council, predicts that the next decade will be a decade of vigorous development of strategic emerging industries. By 2020, the proportion of strategic emerging industries in industrial added value is expected to reach more than 20%.

4. China's CNC machine tool industry is in a period of rising industrial prosperity

The demand for CNC machine tools comes from the investment in fixed assets in the downstream machinery industry. Since 2004, the production capacity of automobiles and parts, aerospace equipment, high-speed trains, military industry, electronic information, power equipment, ships, construction machinery, and molds has expanded rapidly. Drive the rapid growth of machine tool consumption. Driven by the revitalization of the equipment manufacturing industry and the transfer of international industries, the growth rate of China’s investment in equipment and tool purchases will continue to be around 20% in the next 5 to 10 years. The demand for the machine tool industry will continue to grow at a high rate.

5. Machine tool industry changes relatively slowly

Due to the high technical content and process requirements, the machine tool industry belongs to the technology and capital-intensive industries. The industry barriers are high. Both in the domestic and global markets, the industry structure changes slowly.

6. The machine tool is closely related to the investment in fixed assets of the downstream industry

The machine tool belongs to the machinery industry, and the machinery industry is closely related to the investment in fixed assets of the downstream industry. About 60% of the investment in fixed assets of the downstream industry each year is used to purchase machinery products. The proportion of purchases of equipment and appliances in fixed asset investment remained at around 20%, and remained stable over the long term. Therefore, in the downstream industry of the machine tool industry, the main part of fixed asset investment is used to purchase equipment manufacturing tools - machine tools. Statistics show that the growth rate of investment in fixed assets of the downstream industries of machine tools is much faster than the average growth rate of the entire society.

7. China is in a period of heavy chemical industry, China's CNC machine tool industry can escape the short-term economic fluctuations

At present, China is in the period of heavy chemical industry. This is a factor that has been detached from the short-term fluctuations of the economy and has had a huge impact on the Chinese economy in recent decades. It has also played a catalytic role in the development of China's machinery industry. Like the long-term good China macro economy, it has become the best commentary for the sustained and rapid development of the machinery industry in the past 30 years. The so-called heavy industrialization period, that is, the middle period of industrialization, that is, the gradual transformation from the opening up of shortages to the building of an economically strong country, the coal, automobile, steel, real estate, building materials, machinery, electronics, chemical, etc., based on heavy industry. The strong growth momentum of the high-growth industry constitutes a huge demand for the machine tool market, especially for CNC machine tools. China has surpassed Germany to become the world's largest machine tool market. CNC machine tools have become the mainstream of machine tool consumption. It is estimated that the consumption of CNC machine tools will still exceed US$6 billion in 2015 and the number of machines will exceed 100,000. Among them, the proportion of medium-to-high-end CNC machine tools will increase substantially, and the proportion of economic-type CNC machine tools will not change much. The demand for non-CNC-based ordinary machine tools will be greatly reduced.