Japan's machine tool orders warmed up in July

After experiencing consecutive year-on-year declines in new orders and revenues in 2012 and 2013, the new orders and industry revenues in the first seven months of 2014 achieved rapid growth of 35.8% and 27.3% respectively year-on-year. Japan's machine tool industry is an export-oriented industry with an international market share of more than 50%, and its share in recent years has increased to more than 60%. In the first seven months of this year, Japan’s cumulative export orders increased by 40% year-on-year, faster than its domestic market demand growth.

China's demand into the highlights of Japan's overseas market orders

In Japan's overseas market, Asia is its largest market, followed by North America and Europe. The largest market share in the Asian market is the Chinese market. In 2013, the Chinese market accounted for 49.6% of Asia's total demand. As of July this year, orders from China accounted for 68.7% of the total in Asia. It can be seen that the Chinese market has become a more eye-catching part of the Asian market with the strongest rebound in demand. Demand in the European market also performed well this year, with an overall increase of 42.8% year-on-year. The North American market is relatively flat, with only 6.7% year-on-year growth.

The performance of China and Japan's machine tool industry in the first 7 months confirms the upgrading of China's manufacturing industry

China’s manufacturing upgrade is a long-term topic and was proposed very early. However, it has not made much progress for many years. In recent years, the demand for manufacturing upgrades has once again become the focus because of demographic dividends, consumption upgrades, and increasingly demanding work environment for workers. We believe that the declining demand for manufacturing after 2011 will become a key node for the industry to reshuffle and upgrade. The current performance of the machine tool industry is a sign that manufacturing is on the upgrade path.