China's Machine Tool Output Jumped 32.1% in 2011
China’s machine tool industry grossed total output value of 660.65 billion yuan ($104.45 bil.) in 2011, a 32.1% jump over 2010, according to that nation’s data. Its gross sales revenues were reported as 642.49 billion yuan ($101.58 bil.), a 31.1% jump 2010.
China’s output and sales data appear to be based on a different definition of machine tools from those used elsewhere. However, there is no disagreement that China has been both the world’s leading producer and consumer of machine tools for two straight years.
Generally accepted definitions of machine tools include lathes, presses and other basic building blocks of manufacturing. They are used by durable-goods industries to make products ranging from appliances to autos to aircraft as well as more specialized machinery.
Shipments of machine tools from factories in China rose 32% to $27.7 billion in 2011, according to the World Machine Tool Output & Consumption Survey (WMTOCS) which collects data on production, imports, exports and consumption from countries that have substantial equipment-producing industries. China has been the world’s biggest consumer of factory equipment since 2002. Its reliance on imports has declined dramatically over the past decade as China’s domestic machine-tool industry has grown rapidly to satisfy local demand in all but the most sophisticated areas.
Japan, the world’s number two maker of machine tools, realized big gains in shipments of machine tools in both 2010 and 2011 after they had fallen by over half during the global financial crisis of 2008. Big output gains have also been reported by third-place producer Germany during 2011.
The US, in fourth place, saw a solid 25% gain in machine tool shipments during 2011. It is followed by South Korea, Switzerland, Spain and Italy, which all reported a surge in their machine tools industry.
The pace of growth,which has averaged 35% globally in 2011, isn’t expected to continue as the industry has nearly caught up with a recovery in demand.
But the growth in China’s demand for machine tools continued at a blistering pace in 2010, with consumption of $38.4 billion in equipment, a 35% jump over 2010, according to WMTOCS. Japan, Germany and the United States also saw strong growth in demand last year.
Globally a total of $92.7 billion in machine tools was produced in 2011 in the 28 nations with significant machine tool production capacity, compared with shipments of $68.8-billion in 2010.