China Predicted to Become World's Largest Tool Market

Himfr.com, one of China's leading B2B search platforms with more than 30 B2B industry websites to its name, predicts that China will become the world's largest tool market.

Due to rapid development of the manufacturing sector, the cutting tool market in China has great potential and is expected to exceed Germany, the United States and Japan. Tools for restructuring the Chinese industry and continuing development is expected to expand as well.

Himfr's analyst believes that although the global economy is undergoing a period of change and volatility, the manufacturing shift to China through globalization will not reverse the global objective of optimizing the allocation of resources. At present, the output value of China's manufacturing industry generally ranks between Japan and the United States. But its level of output has been much higher than Japan or the United States. In fact, for five years China has ranked No. 1 in the world in consumption of machine tools.

In 2007, China's machine tool industry had a capacity of 500 million units, far more than other developed countries, with numerical control machine tools up to 60 million units. In developed countries, the use of high-performance tools in digital manufacturing technology has become common. Every year, the annual consumption of machine tools is about 50 percent.

In China, cutting tool consumption only accounts for 20 percent of machine tool consumption. This shows that cheap and low-efficiency traditional tools still dominate the Chinese cutting tool market and that machine tool functions are far from being fully utilized to increase labor productivity potential. Developing the cutting tool market in China involves introducing modern high-performance cutting tools that replace low-cost, low efficiency traditional cutting tools.

The above analysis shows that Chinese enterprises ironically face the greatest opportunity of being in China, the world's largest tool market. China is in need of modern and efficient tools, but developments are slow with a Chinese government that relies heavily on imports. In order for the market to develop, Chinese manufacturers must create more modern and efficient tools to achieve the structural adjustment and industrial upgrading of precision operations, instead of staying in a low-level redundant work.

Since the new century, the Chinese tool industry has already begun this restructuring and industrial upgrading process, but progress is too slow. With the economic situation in the face of new challenges, the majority of industries and enterprises have a sense of urgency, which accelerates the pace of adjustment. With the huge potential market in China, China's tool market will shortly exceed that of Japan, the United States and Germany.

To do so, not only the Chinese tool industry has to develop, China's manufacturing industry will also need to employ more modern high-performance tools to enhance productivity and competitiveness, which will be a win-win situation.

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