Japanese Machine Tool Makers Look Forward to Combining With 5G Applications and Transferring Orders to Emerging Markets
Market News

Japanese Machine Tool Makers Look Forward to Combining With 5G Applications and Transferring Orders to Emerging Markets

Japanese machine tool factory develops next-generation business opportunities, demands for replacement machines and introduces 5G services.
Published: May 28, 2020
Japanese Machine Tool Makers Look Forward to Combining With 5G Applications and Transferring Orders to Emerging Markets

Japanese machine tool sales

The Japan Machine Tool Industry Association (JMTBA) announced on March 10 the order data of Japanese machine tool manufacturers in February 2020. The overall order value decreased by 30.1% from the same period last year to 76.714 billion yen. Since January 2013 (71.6 billion yen), the new low level is 7 years and 1 month apart.

The main reason is that the impact of the Wuhan Pneumonia (COVID-19) epidemic has expanded, and the U.S.-China trade war is also continuing, and companies' investment in setting fees has further tightened. In terms of the details of orders for the month, domestic demand in the Japanese domestic market decreased by 23.3% annually to 31.949 billion yen, a decrease for 15 consecutive months. The external demand in overseas markets has decreased by 44.765 billion yen per year, which has decreased for 17 consecutive months. It is also the lowest level since January 2010 (39.3 billion yen). The world's factories in China have been affected by the pneumonia epidemic in Wuhan. Currently, many factories have not fully resumed work, or the production capacity has not returned to the previous level due to a lack of work and materials. As long as there is no improvement in a similar situation, the machine tool market may be difficult to recover in the short term.

Global demand for machine tools has gradually cooled since the second half of 2018 when the Sino-US trade war has gradually increased. Now the Sino-US trade war has not only shown any signs of easing, the trade war between Japan and South Korea has also expanded, and even threatened the military intelligence of both sides. The protection agreement, the global machine tool market can be said to be worse, but the machine tool factory cannot close the door, how to find business opportunities has become a problem that the machine tool factory has to face.

Combination of machine tool industry and 5G technology

According to the Nikkei website, although Japanese machine tool manufacturers are worried about the current situation, they also point out that there are two markets that can be expected: the demand for updating equipment purchased before the 2008 financial tsunami, and emerging overseas markets such as India; and Japanese factories will rely on 5G and Internet of Things (IoT) technology to grab these markets.

The China-U.S. Trade war has allowed Chinese manufacturers to reduce their investment. The reason is that products sold to the U.S. market will have higher costs due to tariffs. This is not good for mainland Chinese manufacturers, but it is good for manufacturers in Southeast Asia or India. DMG Mori Seiki) in the second half of 2018, decided to strengthen marketing in the Indian market, selling machine tools and equipment produced in Japan and China to India, and even considering setting up factories in India to produce machine tools.

According to the reports, the Indian market revenue accounted for DMG Mori Seiki's total revenue before the start of the trade war, but the level was 3%, but after the outbreak of the trade war, it has begun to increase, which is the main reason for the factory to strengthen the Indian market; Okuma also set up its second sales office in southern India in February 2019, and may even increase 4 to 5 locations, also in response to the trend of manufacturers turning orders after the trade war.

However, the development of the Indian market is not only beneficial. India is far away from Japan, and the after-sales service of hardware and software is difficult. Okuma added an Indian service base for this purpose. DMG Mori Seiki also considered this approach, but they have another idea. The Internet of Things technology predicts the failure time of the equipment to be repaired on-site and uses automated logistics technology to allow parts to be shipped within 24 hours. Finally, the equipment is controlled by 5G wireless communication technology, and the software upgrade is automatically completed in the cloud.

Accelerating logistics and cloud management will certainly not only reduce the cost of Indian operations but also help businesses in other countries in the world and in Japan.

Among them, manufacturers headed by Japan turned to conservative investment in equipment after the financial tsunami in 2008. According to a survey by the Japanese Ministry of Economy, Trade, and Industry, before 2007, the Japanese manufacturing industry usually changed equipment for 10 years, and equipment used for more than 15 years accounted for only 33% of the overall, However, the proportion of equipment used for more than 15 years in 2018 increased to 45%. Even if the maintenance cost of machine tools with a life of more than 10 years has increased greatly, there is no obvious upgrade, and manufacturers are not likely to invest.

New machine tools that use high-speed 5G networks and related services are undoubtedly a good reason to attract manufacturers to eliminate machine tools older than 10 years of age; and machine tool manufacturers themselves introduce related technologies, not only to test and display but to insist on using more than 15 years of age. Old equipment manufacturers also have the benefit of improving the maintenance process and reducing maintenance costs.

As for electric vehicle business opportunities, Japanese machine tool manufacturers are not optimistic. According to the Japan Policy Investment Bank (DBJ), the number of electric vehicle parts is only 50% of the same level of gasoline and diesel vehicles, and the average cost of machine tools per vehicle will be reduced. 53%, so the IT industry looks forward to electric vehicles, and machine tool manufacturers are relatively cold.

Japan Machine Tool Industry Association (JMTBA) announced the order data (initial value) of Japanese machine tool manufacturers in February 2020 on March 10. The overall order value decreased by 30.1% from the same period last year to 76.714 billion yen, a negative growth for 17 consecutive months, and it has also fallen since January 2013 (71.6 billion yen), a new low level after 7 years and 1 month.

The main reason is that the impact of the COVID-19 epidemic has expanded, and the U.S.-China trade war is also continuing, and companies' investment in setting fees has further tightened. In terms of the details of orders for the month, domestic demand in the Japanese domestic market decreased by 23.3% annually to 31.949 billion yen, a decrease for 15 consecutive months. The external demand in overseas markets decreased by 44.765 billion yen annually, which has been decreasing for 17 consecutive months. It is also the lowest level since January 2010 (39.3 billion yen). The world's factories in China have been affected by the pneumonia epidemic in Wuhan. Currently, many factories have not fully resumed work, or the production capacity has not returned to the previous level due to a lack of work and materials. As long as there is no improvement in a similar situation, the machine tool market may be difficult to recover in the short term.

Published by May 28, 2020 Source :digitimes, Source :news.cnyes

Further reading

You might also be interested in ...

Headline
Market News
Functional Textiles in the World of Wearable Technology
The word "function" originates from Japan, so it is understandable that functional textiles began in various chemical fiber factories in Japan. In the early days, it was emphasized that new materials produce new functions, often first with relevant fiber function technologies, and then looking for new functional applications. What is the "functionality" of textiles? The most incisive "functional" design is multi-faceted. Functions are related to people themselves and their living environment, including comfortable and healthy functions, leisure and sports functions, safety and protection functions. Contains medical and physiological functions.
Headline
Market News
The Primary Challenge of Carbon Reduction in Supply Chains
Supply chain carbon emissions are 11.4 times greater than operational carbon emissions. Therefore, if companies are to move towards net zero, the effectiveness of supply chain carbon reduction will be an important key. However, supply carbon reduction faces two major problems: inconsistent calculation methods and low data transparency.
Headline
Market News
Understanding the Concept of Net Zero Emissions
With the pressure of international net-zero emissions and the clarion call for carbon tariffs in Europe and the United States, countries have formulated relevant policies to devote themselves to energy conservation and carbon reduction.
Headline
Market News
Display Equipment Market: Global Overview and Industry Development Trends
In response to the COVID-19 epidemic, various countries have issued a series of bans, city closures and traffic restrictions, driving the demand for housing, working at home, online shopping, and home entertainment. This in turn has driven the demand for 3C products such as information and communications products. Among these, display panels have shown one of the greatest increases in demand, and the global display screen equipment market grew by 19% in 2020, reaching USD 13.52 billion.
Headline
Market News
Analysis of Global Pneumatic Tool Industry Market
With the development of weapons, machinery, and chemical industries, pneumatic tools have been widely used and developed.
Headline
Market News
Automotive Component Supply Chain
A hidden important market in the automotive supply chain is the automotive after market (AM) which is used to satisfy after-sales repairs, inspections, maintenance, replacement, or modification services, and is an important part of the automotive supply chain.
Headline
Market News
Industry Development of Garment and Apparel Manufacturing in Taiwan
The textile industry was a leading sector in Taiwan's early industrialization stage. The growth and achievements of the textile industry also led to the development of other industrial sectors. The garment manufacturing industries are downstream industries in the textile industry chain. Its upstream includes fiber manufacturing, chemical additives, spinning, weaving, dyeing and finishing, and other industries. The garment manufacturing industry are the processing stage in the industry chain. It is also an important industry that gives added value to textiles.
Headline
Market News
Opportunity Analysis and Industry Forecast of Industrial Valves
The global industrial valve market will reach 85.6 billion U.S. dollars in 2022. From the perspective of product technology leadership, European countries, especially Germany, and the United States, are the main leaders, followed by Taiwan, Japan, South Korea, China and India.
Headline
Market News
About Transportation and Warehousing Industry
With the soaring volume of e-commerce transactions, the demand for logistics is also rising. In the process of industry transformation and upgrading, smart technology has become one of the keys to industry development.
Headline
Market News
Global Market and Industry Trends of Display Equipment
In response to the COVID-19 epidemic, various countries have issued a series of bans, city closures and traffic restrictions, driving the demand for housing, working at home, online shopping, and home entertainment. This in turn has driven the demand for 3C products such as information and communications products. Among these, display panels have shown one of the greatest increases in demand, and the global display screen equipment market grew by 19% in 2020, reaching USD 13.52 billion.
Headline
Market News
3D Printing Makes A New Point for Manufacturing In Silicon Valley
3D printing technology has been widely used in recent years, and it has also allowed the manufacturing industry to evolve into a "smart" manufacturing industry, which can achieve the large output value with the less manpower.
Headline
Market News
Commercial Camera Drones Fly You Over Various Commercial Applications
How to apply camera drones in the commercial field? What are the key technologies of camera drones? This article discusses the application and technology development trend of camera drones in the commercial applications.
Agree