Analysis of machine tool industry in Q1 2011
2011-06-07 17:48:05 [Print]
In Q1 2011, the boom of machine tool industry since 2010 continued in China as the signed contracts of enterprises increased rapidly and the shortage of parts and components becomes the principal contradiction for the industry periodically, while the import volume surged in a steady pace and the export of machine tool to emerging markets rose up by a large margin.
I. Main industrial economic indexes and statistics of export and import in Jan.-Mar.
The National Bureau of Statistics defined the annual sale revenue which increased to RMB20 million from RMB5 million for larger enterprises and changed the statistics range, therefore, the number of statistics enterprises decreased to 4,237, down by more than 2,000 enterprises from the end of 2010, and the statistics listed in this article is within the 4,237 enterprises.
1. Performance of major industrial economic indexes
Gross industrial output value of the machine tool industry accumulated to RMB129.4 billion in Q1, 2011, up by 38.1% year-on-year.
Gross sale revenue of the machine tool industry accumulated to RMB126.4 billion during the same period, up by 39.2% year-on-year.
Sale rate of the machine tool industry reached to 97.7%, up by 0.7% year-on-year.
The machine tool industry realized RMB4.6 billion of profit, up by 53.2% from that in the same period of last year, and the industry also realized 5.9% of profit ratio of production, increasing by 0.6% from a year ago (Jan.-Feb.).
The machine tool industry increased accumulative investment of fixed asset by 49.8% year-on-year
2. Import and export of machine tool
Import of machine tool accumulated to USD4,74 billion, up by 61.9%, including USD2.44 billion of metal working machine tool, up by 71.9%, both on a year basis.
Export of machine tool reached to USD1.83 billion, up by 32.7%, including USD470 million of metal working machine tool, up by 24.2%, both on a year basis.
II. Characters and analysis on industrial economy
1. Surge of production and sale
Although the National Bureau of Statistics narrowed down the statistics range, the gross industrial output value and the ratio of sale against production value were higher than those in the same period of last year, both surpassed RMB120 billion, up by 38% above year-on-year, and the sale ratio of industrial products in machine tool industry rose to 97.7%, up by 0.7% from a year ago.
2. Earning ratio soared
According to statistics from National Bureau of Statistics, the profit ration of production surged to 5.9% for the machine tool industry, almost ranking the highest record for the industry.
Despite that the production cost constantly went up due to appreciations of raw material, parts and component, fuel and power, labor and freight, the machine tool industry ensured the increase of profit ratio due to the following reasons: Firstly, some enterprises readjusted quotations complying with the actual demand; secondly, the unit fixed cost declined as sufficient orders made sure productions at full capacity; thirdly, enterprises tried their best to control the cost by strengthening management.
3. Soar of orders
In the first three months this year, the overall industry reported soar of orders and the demand exceeded the supply. According to investigations of some key enterprises, the booked orders of these enterprises reached to RMB30.91 billion by the end of March, up by 36.3% year-on-year.
According to investigation of some enterprises at CIMT2011, some enterprises are holding orders that could satisfy 3-6 months of capacity or even satisfy a year of capacity, besides, overseas enterprises gained a lot from the exhibition.
4. Shortage of functional components become bottleneck
With the positive trend in the market and the increasing orders, enterprises reported that delaying delivery prevailed in the industry again, while the tight supply of functional components become the focus as well as the principal contradiction for the production at present.
5. Boom of imported products
In Q1, imported machine tool boomed in Chinese market, up by 61,9% year-on-year, marking a periodical record historically. The imports of the three major products, i.e. metal-cutting machine, metal forming machine, and digital controller, increased by 71.5%, 73.4% and 58.0% respectively all on a year basis.
6. Steady increase of export
In Q1, the machine tool products kept increasing in a steady pace with the export value reaching to USD1.83 billion, up by 32.7% year-on-year, which ranked the highest periodic record historically, especially for the export to emerging markets.
III. View on current situation
As of now, the market has kept a ultra high-speed development for one year, and China’s consumption of metal working machine tool accounted for 50% of the global consumption, which is beyond imagination. When many participants are trying to expand capacity to gain more profit, some are worried about sudden wave in the market. Therefore, we would like to provide some views on the current situation
First of all, calm down and prudently think over the driven force of the high increase and how long the increase will continue.
Secondly, the soar of imported machine tools against domestic gross industrial output value indicated that the market required more high-end products than low-end products.
Thirdly, know well market information timely by strengthening investigations of overseas and domestic markets and by keeping an eye on the change of policy.
Fourthly, make positive response to the official implement of ECFA.
Fifthly, enterprises should formulate practical five-year plans and take the transformation of the growth mode as the principal target for upgrade in accordance with the overall strategy of each enterprise in this very first year of the “Twelfth Five Year”.
I. Main industrial economic indexes and statistics of export and import in Jan.-Mar.
The National Bureau of Statistics defined the annual sale revenue which increased to RMB20 million from RMB5 million for larger enterprises and changed the statistics range, therefore, the number of statistics enterprises decreased to 4,237, down by more than 2,000 enterprises from the end of 2010, and the statistics listed in this article is within the 4,237 enterprises.
1. Performance of major industrial economic indexes
Gross industrial output value of the machine tool industry accumulated to RMB129.4 billion in Q1, 2011, up by 38.1% year-on-year.
Gross sale revenue of the machine tool industry accumulated to RMB126.4 billion during the same period, up by 39.2% year-on-year.
Sale rate of the machine tool industry reached to 97.7%, up by 0.7% year-on-year.
The machine tool industry realized RMB4.6 billion of profit, up by 53.2% from that in the same period of last year, and the industry also realized 5.9% of profit ratio of production, increasing by 0.6% from a year ago (Jan.-Feb.).
The machine tool industry increased accumulative investment of fixed asset by 49.8% year-on-year
2. Import and export of machine tool
Import of machine tool accumulated to USD4,74 billion, up by 61.9%, including USD2.44 billion of metal working machine tool, up by 71.9%, both on a year basis.
Export of machine tool reached to USD1.83 billion, up by 32.7%, including USD470 million of metal working machine tool, up by 24.2%, both on a year basis.
II. Characters and analysis on industrial economy
1. Surge of production and sale
Although the National Bureau of Statistics narrowed down the statistics range, the gross industrial output value and the ratio of sale against production value were higher than those in the same period of last year, both surpassed RMB120 billion, up by 38% above year-on-year, and the sale ratio of industrial products in machine tool industry rose to 97.7%, up by 0.7% from a year ago.
2. Earning ratio soared
According to statistics from National Bureau of Statistics, the profit ration of production surged to 5.9% for the machine tool industry, almost ranking the highest record for the industry.
Despite that the production cost constantly went up due to appreciations of raw material, parts and component, fuel and power, labor and freight, the machine tool industry ensured the increase of profit ratio due to the following reasons: Firstly, some enterprises readjusted quotations complying with the actual demand; secondly, the unit fixed cost declined as sufficient orders made sure productions at full capacity; thirdly, enterprises tried their best to control the cost by strengthening management.
3. Soar of orders
In the first three months this year, the overall industry reported soar of orders and the demand exceeded the supply. According to investigations of some key enterprises, the booked orders of these enterprises reached to RMB30.91 billion by the end of March, up by 36.3% year-on-year.
According to investigation of some enterprises at CIMT2011, some enterprises are holding orders that could satisfy 3-6 months of capacity or even satisfy a year of capacity, besides, overseas enterprises gained a lot from the exhibition.
4. Shortage of functional components become bottleneck
With the positive trend in the market and the increasing orders, enterprises reported that delaying delivery prevailed in the industry again, while the tight supply of functional components become the focus as well as the principal contradiction for the production at present.
5. Boom of imported products
In Q1, imported machine tool boomed in Chinese market, up by 61,9% year-on-year, marking a periodical record historically. The imports of the three major products, i.e. metal-cutting machine, metal forming machine, and digital controller, increased by 71.5%, 73.4% and 58.0% respectively all on a year basis.
6. Steady increase of export
In Q1, the machine tool products kept increasing in a steady pace with the export value reaching to USD1.83 billion, up by 32.7% year-on-year, which ranked the highest periodic record historically, especially for the export to emerging markets.
III. View on current situation
As of now, the market has kept a ultra high-speed development for one year, and China’s consumption of metal working machine tool accounted for 50% of the global consumption, which is beyond imagination. When many participants are trying to expand capacity to gain more profit, some are worried about sudden wave in the market. Therefore, we would like to provide some views on the current situation
First of all, calm down and prudently think over the driven force of the high increase and how long the increase will continue.
Secondly, the soar of imported machine tools against domestic gross industrial output value indicated that the market required more high-end products than low-end products.
Thirdly, know well market information timely by strengthening investigations of overseas and domestic markets and by keeping an eye on the change of policy.
Fourthly, make positive response to the official implement of ECFA.
Fifthly, enterprises should formulate practical five-year plans and take the transformation of the growth mode as the principal target for upgrade in accordance with the overall strategy of each enterprise in this very first year of the “Twelfth Five Year”.
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