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Japan's Machine Tool Industry Has A Significant Increase In Orders From China

Apr 27, 2018

According to data released recently by the Japan Machine Tool Industry Association, the amount of machine tool orders in Japan in 2017 (a quick report value) increased by 38% from 2016, to 1,780,328 million yen. After a lapse of 10 years, it reached new heights. Both domestic demand and foreign demand have grown, showing a historic strong momentum.


It is external demand that has played a role in driving up the growth of orders. The increase amounted to 44%, and the order amount was 1.092377 billion yen. Refreshed the 2014 record high. China is advancing the transformation and upgrading of the manufacturing industry, and the amount of orders from China has increased significantly.


In terms of domestic demand, Japan’s demand for semiconductor manufacturing equipment has grown, and domestic machine tool orders have also been strong.


The amount of machine tool orders in March increased by 28% year-on-year to 182.849 billion yen. It has increased continuously for the past 16 months and set a new monthly record. External demand increased by 19% to 107.232 billion yen, and domestic demand also increased by 44%.


Japanese machine tool manufacturers have less direct exports from the Chinese factories to the United States. Focusing on the Sino-US trade war, many people pointed out that "it is estimated that there will not be any sudden and sharp decline in similar orders." However, there are concerns that the trade war will lead to a cooling economy.


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