Japanese Machine Tool Orders Are Expected To Decline By 12% In 2019

- Jan 15, 2019-

Japanese machine tool order in 2019 will be reduced by 12% from the actual (estimated) year-on-year basis, and only 1. 600 million yen in 2019, according to a report released on January 10, the Japanese Economic News.

In 2017, the world machine tool market presents a recovery, and Japan, as the world's machine tool exporter, has a strong order in 2017 and 2018. According to statistics, in 2017, the order amount is 1. 6455 trillion yen, with a record high of 10 years. In 2018, it is expected to be around 1% higher than in 2017, up to about 1. 800 million yen, which is more than the expected of the “The total number of machine tools is 1. 7 trillion yen” in the last year. 

But with the market, economic and political changes, for 2019 Japanese machine tool order situation, the rice village is lucky to express the “The trend has changed”. In 2019, many factors will have a negative impact on Japanese machine tool orders. First, the Sino-US trade war has led to an increase in the instability of China's market. It is embodied as a weakening of the investment in the equipment and a wait-and-see attitude to the market. Secondly, the advantage of the Japanese machine tool is that the investment in the field of automobile industry is declining. It is understood that Japan's machine tool order amount to China is about 10 billion yen in the field of metal processing in the smartphone housing. But the demand for China's SUV and smart-phone parts is weakened, and the output of American Apple's smartphone “iPhone” will no doubt cast a shadow on the Japanese machine industry. Finally, by the economic globalization, the volatility of a market is likely to produce a series of chain reactions. Although Japan and the European and American markets are strong in 2018, it can't guarantee that China's depressed market will not spread to other countries and regions. 

Overall, the factors that affect Japan's 2019 machine tool order are many, but the most critical factor is China. So what is the reason that the second half of China's second half of the market has been in a slump so far? As is well known, the machine tool industry is an industry with great environmental impact. In the second half of 2018, under the influence of the macro-economy, the overall downward trend of China's machinery industry is obvious, and the machine tool market also turns cold in the second half of the year. At the “Analysis of the economic operation situation of the whole year of the mechanical industry in 2018 and the prospect of 2019” 's symposium, on December 18, Ms. Tsai, the vice-director of the Central Committee of Experts, said that the downward inertia of the industry could have an impact on November, December, 2018 and the first half of next year. 

As can be seen from above, the weakness of China's machine tool consumption market is objective, and the influence scope is not only the Japanese machine tool enterprises, but also the Chinese machine tool enterprises face great pressure. Such market situation has no doubt influenced the development confidence of the Japanese machine tool industry. At present, some Japanese machine tool enterprises have chosen to open up the potential Indian market, and some machine tool enterprises have started to adjust the operation strategy to China. The author is in the market of China or will continue low water, how to break the bureau of the Japanese machine tool enterprise? "In the article, it is also said that the way to turn the sales market and expand domestic demand will be the means to avoid the risk of Japanese machine tool enterprises." 

While the downturn in the Chinese market is the main cause of the decline in the expected value of Japanese machine tool orders, some of the problems in the Japanese machine tool industry have been exposed. For example, in the export structure, there are a single, over-reliance on the 3C digital industry, including the mobile phone; the domestic market is too small, and the ability to deal with the overseas market is slightly insufficient. In addition, it has also been pointed out that the alternative to imported machine tools in China's machine tool technology has also affected Japan's export-to-China machine tool to some extent. Under all the factors, it is imperative to launch a more competitive new product to expand the new market to Japanese machine tool enterprises. 

In short, it will be a difficult year for both the Japanese machine tool industry and the Chinese machine tool industry in 2019. In the face of uncertain market environment, the search for a new way out will be the development focus of the future.

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