Increased market competition in the machine tool industry

The Chinese machine tool industry experienced a sharp decline in profits in 2012. In the first nine months, the gold machine tool industry realized a profit of 3.53 billion yuan, a year-on-year decrease of 39%, and the product sales revenue profit margin was only 3.6%, a year-on-year decrease of 1.8 percentage points. The profit of the forming machine tool industry was 2.62 billion yuan, a year-on-year decrease of 4.5%. The profit margin of product sales was 6.2%, a year-on-year decrease of 0.6 percentage points.

From January to September, the inventory of finished products of the machine tool industry increased by 22.7% year-on-year, of which, the gold-cutting machine tool industry increased by 44.8%. According to Huaxia Mould Network's statistics on seven small-scale key contact enterprises, the inventory of finished products by the end of October increased by 31.9% year-on-year. After April of this year, the total inventory remained at around 15 billion yuan. In China's basic industry development, today, although considerable progress has been made in all walks of life, there are still some problems. For example, the machine tool industry has always faced that domestic machine tool products are mostly low-end products and high-end products are less involved. Most of them are occupied by foreign products. At the same time, there are emerging manufacturing companies in the country that have entered the industry. However, because there is no decisive breakthrough in technology, market competition in the entire industry has been exacerbated, and there have been phenomena of price and brand battles. Only in the middle and low products can continue to compete and produce, and finally because of too many manufacturers, resulting in a certain degree of excess capacity, and everyone's technology are similar, there is no decisive advantage. So too many products are homogenized.

The continued downturn in the market has not only led to a lubricity but has also led to a sharp increase in inventories. During this period, the situation in various industries is slightly different. The increase in inventory of machine tool accessories and machine tool appliances was modest, with 34.3% for gold-cutting machine tools, 40.9% for rolling-function components, and 100% for CNC systems. As a major machine tool consumer and manufacturer in the world, China's machine tool industry has always been in a position. In the period of rapid development, new companies have been added to this industry, but the machine tool industry encountered a problem that any company did not want to encounter in 2012. It was a sharp decline in profits.

The reason for this phenomenon is that the entire industry is not capable of high-end products due to technical problems. Experts pointed out that if we want to change this situation, we can only make efforts in manufacturing technology, improve product quality standards, and use quality to capture the market. After all, domestic manufacturers are now more concerned about whether a brand's products are easy to use, and no longer use a single price as a measure.