Japanese media: 2018 China will still "explore" Japanese machine tools and machinery?

For Japanese companies, China's demand in the machinery sector is expected to continue to expand in 2018. According to data released by the Japan Construction Machinery Industry Association on February 27, shipments for the 2018 year are expected to reach 2.3998 trillion yen, a 5% increase from the 2017 forecast. The previously forecasted supply will be reduced, but this time the growth was due to strong sales in the North American and Chinese markets. In addition, orders and production volumes for machine tools and robots are expected to increase, and the pattern of China's growth in the Japanese equipment sector seems to continue. The Japan Construction Machinery Industry Association said that as Japan's exhaust emission regulations became more stringent, Japan's 2017 demand for panic buying. Affected by its reverse effect, Japan's domestic shipments are expected to decrease by 4% in 2018. However, exports to North America and Asia, which promote residential construction and infrastructure investment, will increase by 11%, so overall growth will continue. It is reported that the shipments in 2017 (2.2831 trillion yen) are expected to reach the second highest level in history, and shipments in 2018 may increase further. In China, a large construction machinery market, demand is expected to continue to increase with public utilities and infrastructure investment. According to the Japan Construction Machinery Industry Association, member companies that forecast an increase in demand in China in 2018 accounted for 85% of the total, accounting for 71% in 2019. The rest are expected to have a flat demand in China, which is expected to be zero. The president of the Japan Construction Machinery Industry Association, Hirano Hirano (the president of Hitachi Construction Machinery) said that "although there is still opacity, it is expected to remain strong." Hitachi Construction Machinery said, "I thought that after the end of the party congress in October 2017, there was a risk of slowing demand, but it is expected that there will be a large amount of engineering soon." 1519952046975552.jpg On the one hand, Chinese demand has driven orders for Japanese machine tools and robots to the highest level in history. According to the Japan Machine Tool Industry Association, machine tool orders in 2017 increased by 31.6% year-on-year to 1.6455 trillion yen, a record high of 10 again. It is estimated that the order amount for the whole year of 2018 will reach 1.7 trillion yen, setting a new high for two consecutive years. According to a survey by the Japan Robot Industry Association, the amount of robot orders in 2017 (by membership) increased by 34.1% year-on-year to reach 759.4 billion yen, a record high. The total production of member companies and non-member companies seems to reach 900 billion yen. Production in 2018 is expected to increase further, reaching the 1 trillion yen mark. In the future, Japan's manufacturing line may have problems with insufficient parts supply as demand increases. In the field of machine tools and other areas, the extension of delivery time will become a problem. In construction machinery, Caterpillar Japan representative executive director Harry Kobrak said, "If demand increases further in the future, the supply of parts will reach the limit." Prior to this, Japan had experienced a sharp decline in demand for construction machinery due to shrinking public investment. Therefore, manufacturers will not easily expand their investment actively, and will continue to explore the changes in demand in the future.

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