Market Prospect of Cutting Tool Industry

In the past 10 years, the cutting tool industry in China has continued to grow at a high rate. It has experienced the baptism of the financial turmoil in the winter of 2009 and the spring of 2010. Although many small businesses have been closed down, many new partners have been added, and they are still developing rapidly with strong momentum. It is a joy and a worry, and people in the industry have different opinions.

Behind the rapid development, companies are also soberly aware that the high growth rate of the domestic tool industry is not high in gold content, and a considerable part of these companies have to resort to cheap labor as the basis to produce low-quality products at a cost to the environment. Twist drills, taper shank drills, taps, saw blades and other low-end market saw a melee, while the growth of high-end products was slow. The high-end, sophisticated, and agile cutting tools in the auto industry, mold industry, and aerospace industries depended heavily on imports.

At present, China's metal cutting tools have begun to develop from the high-speed steel tool to the development of carbide cutting tools, but the intensity is not enough, still mostly low-end. China National Machine Tool Network believes that it is imperative to regard the transition of high-end products as a very important task, especially the slowdown of economic growth in the United States, the weakness of the European market, and the obstruction of low-grade tool exports. From the perspective of energy and raw materials, a large number of low-grade tools are exported. It is out of season and the government will not give it any power. Statistics from the China Machine Tool Industry Association show that China consumes 40% of the world's tool materials, but its sales revenue only accounts for 12% to 15% of the world's tools. For this reason, the development of China's tool industry during the 12th Five-Year Plan period will present the following trends:

(1) The momentum of rapid development is unstoppable. Due to macro-control, it is still in a stage of sustained development.

(2) "Speed, accuracy, efficiency, and environmental protection" have become industry consensus.

(3) The competition is fierce. State-owned enterprises restructured and reorganized, foreign-funded enterprises settled in one after another, and the rise of private enterprises, survival of the fittest, poor management, and bankruptcy were inevitable.

In view of the above-mentioned severe situation, the domestic tool industry should review the situation, take the market as the guide, actively adjust the industrial structure, improve product quality, and develop new tools that are suitable for people's livelihoods such as automobiles, high-speed rails, and home appliances.

Looking at the hot industries such as machinery, molds, and energy in recent years, the tool market in China is very promising. Nowadays, China has become a major machine manufacturing country in the world. In the future, where is the world's instrument market? In China, the occupation of the Chinese market is the occupation of the international market.