Analysis of economic operation of machine tool industry in 2013
In 2013, China's machine tool market remained weak, with Jinchee machine tools showing the most significant decline and imported machines also experiencing a sharp drop. Intense competition highlighted growing contradictions between industry structure, product composition, and market demand, particularly as demand for low-end products decreased significantly. Meanwhile, the international market showed varying degrees of recovery, while China’s machine tool exports fluctuated slightly, achieving only modest growth throughout the year.
**I. Import and Export Trends in China's Machine Tool Industry**
In 2013, the total import and export volume of machine tools reached $25.62 billion, representing a 12.9% decrease compared to the previous year. Exports totaled $9.53 billion, up by 3.2%, while imports fell to $16.09 billion, down by 20.2%. The trade deficit stood at $6.56 billion, a 40.1% reduction from the prior year.
**1. Sharp Decline in Imports**
The overall import value of machine tools was $16.09 billion, down 20.2% year-on-year. Metalworking machine tools accounted for $10.10 billion, a 26% drop, with CNC machine tools declining by 26.5%. Among these, gold-cutting machine tools saw an import value of $7.99 billion, down 28.4%, while CNC gold-cutting machines dropped to $7.03 billion, a 28.3% decrease. Forming machine tools were imported for $2.11 billion, down 15.5%, with CNC forming machines falling to $1.18 billion, a 13.9% decline.
This sharp decline was attributed to years of rapid import growth, which led to accumulated issues in user industries regarding production capacity expansion and high-end product absorption. A period of adjustment was necessary, making the 2013 decline different from that of 2009. It is expected that future growth in machine tool imports will not return to historical high-speed levels.
**2. Export Performance Remained Stable**
Machine tool exports in 2013 reached $9.53 billion, a 3.2% increase over the previous year. Metalworking machine tools exported for $2.86 billion, up 4.4%, with CNC machine tools rising to $1.14 billion, a 5.8% increase. Gold-cutting machine tools saw exports of $1.88 billion, up 1.3%, while CNC gold-cutting machines increased to $920 million, a 3.2% rise. Forming machine tools were exported for $980 million, up 10.7%, with CNC forming machines reaching $210 million, a 18.4% increase.
Despite this, export performance remained relatively stable, influenced both by limited global demand and the challenges Chinese enterprises faced in adapting to international markets.
**II. Operational Performance of China’s Machine Tool Industry**
**1. National Bureau of Statistics Data**
- The machine tool industry achieved total sales revenue of 802.63 billion yuan, a 13.7% increase.
- Profit reached 49.59 billion yuan, up 8.8%.
- Fixed asset investment rose by 21.2% year-on-year.
**Jinchee Machine Tool Industry:**
- Sales revenue was 150.26 billion yuan, up 0.8%.
- Profit in the gold-cutting machine tool sector dropped by 990 million yuan, a -23.1% change.
- Output of gold-cutting machines reached 725,851 units, with CNC output at 209,287 units, down -1.5% and up 2.4%, respectively.
**Forming Machine Tool Industry:**
- Sales revenue reached 75.52 billion yuan, up 16.1%.
- Profit was 5 billion yuan, an increase of 10.5%.
- Output of forming machines was 233,438 units, up 0.1%.
**2. Key Enterprise Performance**
- Total value of key industrial enterprises reached 112.86 billion yuan, down 4.5%.
- Sales revenue fell to 112.38 billion yuan, down 13.8%.
- Profit declined to 3.99 billion yuan, down 33.4%.
- Gold-cutting machine tool industry generated 52.39 billion yuan in value, down 11.7%, with CNC gold-cutting machine tools at 39.43 billion yuan, down 13.8%.
- Sales revenue dropped by 11.1%, and profit fell by 80% year-on-year.
- Output of Jinchee machine tools fell by 14.2%, with CNC cutting output down 2.5%.
- Forming machine tool industry output value was 13.37 billion yuan, down 0.6%, with CNC forming machine tools at 7.13 billion yuan, down 0.6%.
- Sales revenue increased by 2.9%, but profit fell by 1.8%.
- Machine tool production dropped by 8.1%, with CNC forming output up 3.8%.
**3. Annual Production and Consumption of Metalworking Machines**
Data from the State Administration of Manpower and industry experience varied, prompting the association to collect data from key enterprises and conduct research. Based on this, the following conclusions were drawn:
**4. Industry Operating Characteristics**
**a) Reduced Fixed Asset Investment and Overall Demand Decline**
The sharp drop in machine tool imports signaled reduced fixed asset investment and lower market demand. User industries had passed their peak investment phase, and equipment in some sectors became saturated. This led to slower growth in fixed asset investment. After years of rapid economic growth, the industry now faces a slowdown in demand structure, industrial structure, and factor structure.
**b) Rising Demand for High-End Products and Improved Quality Focus**
Market demand increasingly favored high-end machine tools. Imported CNC machine tools saw an average unit price increase of 28.8% in 2013. The rise of the robotics market also indicated a trend for machine tool companies to enter the robot manufacturing field. However, companies must avoid overcapacity and resource waste.
Market demand became more diversified, with mid-range and even low-end products still having a place. Excellent quality remained essential for maintaining market share. Enterprises focusing on process and detail improvements saw better economic performance, even during downturns.
**c) Overcapacity and Vicious Competition**
Overcapacity in the machine tool industry was evident, with enterprise numbers increasing by 20.4% since 2011 and output rising by 137.5%. Heavy-duty machine tools had the lowest utilization rates, with revenues dropping 45–50% over two consecutive years. Other products had slightly higher utilization, but overall capacity utilization remained low.
Excessive capacity intensified competition, leading to homogenized production and worsening vicious competition. If unchecked, it could threaten the safety of the entire industry. Therefore, the industry must take action to curb such trends.
**d) Declining Profitability and Tighter Liquidity**
Key enterprises reported a 3.6% profit margin on product sales, while Jinchee machine tool profits were only 0.7%. Declining profitability affected normal operations and hindered business cycles. Inventory increased by 7.7%, and accounts receivable rose by 17.8%. Larger acceptance bills further tightened liquidity.
Despite challenges, most companies adapted well, innovating and restructuring. At CCMT2014, many launched new products, including intelligent, specialized, and precision-based solutions. The industry is expected to emerge stronger after navigating this difficult period.
**III. Outlook for 2014**
**1. Macroeconomic Conditions**
The global economy continued its slow recovery in 2014, though uncertainties remained. China’s central economic work focused on stability, but downward pressure persisted. Some industries still faced overcapacity and structural issues.
**2. Industry Outlook**
- Machine tool development remains driven by fixed asset investment. With limited growth expected, the industry may struggle to regain momentum.
- Key enterprises reported a 2.2% drop in orders at the end of 2013. CCMT2014 exhibitors fell by 40.9%, with gold-cutting and CNC machine tool turnover declining by 45.6% and 41.3%, respectively. This suggests no major improvement in the first half of 2014.
**3. Conclusion**
As shown in Figure 1, after a decline in 2012, sales revenue continued to fall in 2013, with only a 0.9% fluctuation in the second half. Figure 2 illustrates negative order growth for two consecutive months, indicating that the industry has not yet escaped its difficulties, although the downward trend is slowing.
Overall, the first half of 2014 is unlikely to show significant improvement. While the second half may see some recovery, there will still be a decline compared to 2013. Even optimistically, the situation is expected to remain similar to 2013.
Hotel Guest Room Amenities
Hotel amenities are provided at no additional charge to make a guest’s stay more convenient and comfortable.
Essential amenities mainly include in-room items like bar station, coffee&tea, iron board, luggage rack, writing table and chair, table lamp,etc.and bathroom accessories and personal care items like hair dryer, bathtub, consumable personals, shoes,towels,etc.
As well as these essentials, hotels may provide additional amenities to make their service stand out and impress guests.
hotel guest amenities,hotel bathroom accessories,hotel room supplies,hotel must-have amenities,guest room consumables
Guangzhou Hotop Hotel Supplies Co.,Ltd , https://www.hotopsupply.com