Japan's Machine Tool Market in March is in Recession
Market News

Japan's Machine Tool Market in March is in Recession

In March 2020, Japan's export and machine tool market decreased compared with the same period last year, and the market performance did not meet expectations.
Published: May 08, 2020
Japan's Machine Tool Market in March is in Recession

Japan's March 2020 Industrial Production Index is Expected to Decline Significantly

  1. According to the Japan Economic News report on March 31, according to the Japanese Ministry of Economy, Trade and Industry announced the February 2020 industrial production index quick report value, an increase of 0.4% from the previous January to 100.2, although it has increased for three consecutive months, However, they only showed a slight increase, and predicted that the industrial production index in March might decline sharply by 5.3%.
  2. According to the above statistical quick report, both the electronic parts and chemical industries grew in February, but the transportation machinery including aircraft parts declined by 11.5% compared with last month. Under the influence of the new coronary pneumonia epidemic, not only the supply of components has been stagnant As a result, but automobile manufacturing has also reduced production. According to the survey results of the manufacturing industry's production forecast that predicts the growth of enterprises, it may decline significantly by 5.3% in March 2020 and may increase by 7.5% in April.
  3. Japan's Ministry of Economy, Trade, and Industry said in the February assessment that the current industrial production is still in a "weak state of progress." In addition, the Ministry of Economy, Trade, and Industry believe that the investigation deadline is early March 2020, and the subsequent impact of the new coronary pneumonia epidemic has not been fully reflected in the data. In the future, it will face more severe and uncertain risk challenges.

Japan's exports in March 2020 fell sharply by 11.7%

  1. According to the trade statistics of March 2020 (fast-reported value, based on customs clearance data) published by the Ministry of Finance of Japan (4) on March 20, the export volume in March was 66.357 million yen, a decrease of 11.7 compared with the same period of the previous year % Is the largest decrease since July 2016; it is mainly due to the stagnation of global economic activity due to the spread of the new coronary pneumonia epidemic, and the sharp decline in Japanese exports to the United States and Germany. It is estimated that after April 2020, as the global new coronary pneumonia epidemic continues to burn further, Xianqin will have a more severe impact on Japanese exports.
  2. In addition, Japan ’s imports in March 2020 amounted to 63.529 million yen, a decline of 5.0% from the same period of the previous year, and the double-digit decline in the previous (2) month has slowed. Japan ’s trade surplus in March 2020 (export value minus import value) was 4.9 billion yen, showing a surplus for two consecutive months.
  3. Japan's March exports to the United States amounted to 18.18 million yen, a significant decrease of 16.5% from the same period of the previous year, the largest decrease since the 311 East Japan Earthquake. Due to the global spread of the new coronary pneumonia epidemic, the number of cars exported to the United States Engines, aircraft engines, and other prime movers, construction and mining machinery, etc. have fallen rapidly. On the other hand, imports from the United States in March amounted to 74.53 million yen, an increase of 1.3%. The trade surplus with the US in March was 436.8 billion yen, the first decrease in three months.
  4. In addition, Japan ’s exports to China in March amounted to 199.5 million yen, a decrease of 8.7% over the same period of the previous year, mainly due to the sluggish production of gearboxes and semiconductor device equipment for automotive components; China's imports amounted to 1,431.7 million yen, a 5% decline in the same period. The import of computer-related components and clothing performed poorly. Japan's trade deficit with China in March was 241.2 billion yen.

Japan's March machine tool export orders decline by 40.7%

  1. According to the statistics released by the Japan Work Machinery Industry Association on (21) on April 21, the total number of domestic and foreign machine tool orders in March (2020) was 77.4 billion yen, a decrease of 40.7% from the same period of the previous year; of which, external demand orders 43.2 billion yen, a 43.7% decline in the same period, domestic demand orders were 34.2 billion yen, a 36.5% decline, especially in the automotive industry.
  2. Japan ’s order for export of machine tools to China in March 2020 was 11.3 billion yen, a decrease of 43.8% from the same period of the previous year, showing negative growth for 25 consecutive months; due to the impact of the new coronary pneumonia epidemic, the company’s equipment investment willingness is still in a downturn. In addition, orders for working machines in the European region where the new coronary pneumonia epidemic continued to spread were 7.2 billion yen, a significant decline of 61.4%; orders for working machine exports to the United States were 12.2 billion yen, a decrease of 45.7%.
  3. In addition, the Japan Work Machinery Industry Association also announced the cancellation of the "International Machine Tool Exhibition (JIMTOF)" originally scheduled to be held in Tokyo in December this year. It is reported that it was mainly affected by the extension of the Tokyo Olympics and Paralympics to 2021. It is difficult to ensure the exhibition venue.
Published by May 08, 2020 Source :taiwantrade,Source :taiwantrade,Source :taiwantrade

Further reading

You might also be interested in ...

Headline
Market News
Machine Tool Industry: From Downstream Demand to Upstream Technology
The machine tool industry, often called the “mother of industry,” is the backbone of advanced manufacturing across sectors such as automotive, electronics, aerospace, energy, and healthcare. Its value chain spans upstream components, midstream machine tool builders, and downstream application industries, all tightly interlinked. As global market demands evolve rapidly, developments at the downstream level are increasingly shaping upstream technologies and component innovations, creating a dynamic cycle of interaction.
Headline
Market News
Navigating 2025's Cotton Price Spike: Textile Industry's Guide
Since the second quarter of 2025, international cotton futures prices have shown a significant upward trend, creating ripples throughout the global textile supply chain. In the face of this unprecedented market shift, textile companies are grappling with immense cost pressures and operational challenges. This article aims to provide a deep dive into the current state and underlying causes of this cotton price surge, its far-reaching impact on the industry, and offer concrete, actionable strategies and future transformation directions to help businesses effectively manage risk and maintain a competitive edge.
Headline
Market News
The Quiet Secret of Electric Vehicles: Why No Gearbox Makes Driving Smoother
When you drive an electric vehicle, the first thing that might surprise you is the astonishing quietness and linear acceleration. There’s no gear-shifting jolt, no roar of a traditional engine—just a seamless connection between you and the car. Yet you might wonder: without a gearbox, how does an electric vehicle transmit power to the wheels? This is one of the key breakthroughs in EV design, simplifying the structure while redefining what “smooth” and “efficient” driving really feels like.
Headline
Market News
From Field to Fashion: How Cotton Price Fluctuations Affect the Textile Industry
Cotton is one of the most important natural fibers in the world, used in everything from T-shirts and jeans to bed sheets and duvet covers. For the textile industry, cotton is like a key ingredient in a restaurant kitchen—its cost accounts for a significant portion of production, and its quality and price directly impact the final product. In recent years, fluctuations in cotton prices have forced textile and apparel manufacturers worldwide to closely monitor the market, as even small price changes can affect annual profits.
Headline
Market News
AI Pharmaceutical Market Expands Rapidly|Enhancing Drug R&D Efficiency and Investment Opportunities
From the inception of a new drug to its market launch, the process demands astronomical investments, prolonged development timelines, and faces countless risks at every stage. For decades, pharmaceutical companies have struggled along this arduous path, with many promising drugs failing to reach patients. However, the rise of artificial intelligence (AI) is ushering in a transformative era, disrupting traditional drug development paradigms. AI not only streamlines R&D workflows but also reshapes the global landscape of capital and innovation competition.
Headline
Market News
Edge AI Injects New Advantages into European and American Manufacturing
When traditional manufacturing equipment transforms from cold mechanical tools into “real-time smart devices,” Edge AI is quietly sparking an industrial revolution. Without relying on distant cloud computing, this breakthrough technology enables machines to instantly detect anomalies and respond in real time, greatly boosting factory operation speed while achieving unprecedented stability and safety. As the global market experiences explosive growth, leading companies in Europe and the US are racing to enter the field, with Edge AI accelerating the manufacturing industry toward a new era of “smart real-time” operations!
Headline
Market News
Micromanufacturing Equipment: A New Opportunity for Precision Manufacturing
The manufacturing revolution in the micro world is quietly sweeping across the globe! As the medical, electronics, and automotive industries rapidly increase their demand for high-precision micro components, the global micromanufacturing equipment market is experiencing unprecedented growth. From implantable medical devices to smart car sensors, these precision tools not only drive technological innovation but have also become key investment targets for major international corporations and governments. With the support of intelligent and automated technologies, the future of micromanufacturing will be faster and smarter, propelling the global manufacturing industry to new heights!
Headline
Market News
LLM Factory Smart Assistant: “AI as the Intelligent Navigator of the Factory”
Modern smart factories often face challenges with scattered data and information silos. Although sensors, SCADA, MES, and other systems continuously generate vast amounts of data, the lack of integration makes it difficult to quickly identify the root causes of anomalies. Large language models (LLMs) are emerging as a key solution by enabling cross-system data retrieval and analysis through natural language queries. Acting as “semantic coordinators” within multi-agent manufacturing systems, LLMs can dynamically adjust production schedules and resource allocation in real time. The article references examples from Microsoft Azure AI, AWS, Schaeffler, and Siemens to demonstrate how LLMs help reduce downtime, increase transparency, and improve decision-making efficiency. Finally, it highlights that as LLMs integrate with automation and visualization technologies, manufacturing will enter the “semantic era,” where operators can access production line insights conversationally and instantly, driving smart manufacturing toward greater flexibility and intelligence.
Headline
Market News
The Talent Crunch Strikes! How Taiwan’s Machine Tool Industry Can Solve the Succession Crisis
Taiwan’s machine tool industry holds a crucial position in the global precision manufacturing supply chain. However, a silent "talent crunch" and "knowledge succession crisis" are now threatening its future. With the acceleration of smart manufacturing, AI, and automation, the industry's demand for high-end, cross-disciplinary talent—skilled in electrical control, software integration, and AI applications—has surged. Yet, the market supply is severely insufficient, hindering the industry's digital transformation and upgrade. Industry observers warn that if this gap continues to widen, Taiwan's international competitiveness in the machine tool sector could face significant challenges within the next five to ten years.
Headline
Market News
How Advances in Recycling Technology Impact Global Plastic Prices and Supply Chains
With plastic pollution becoming a central environmental concern, technological progress in recycling has emerged as a significant factor in shaping global plastic prices and the configuration of supply chains. In 2025, the evolution of chemical, mechanical, and digital recycling methods, alongside regulatory and market shifts, now interact in complex ways to influence the entire plastic value chain.
Headline
Market News
Laser Levelers: Precision Tools Driving Smart Construction
In the preparation of floors and foundations - where even minor deviations can have major consequences for machinery calibration, safety, or structural longevity - laser levelers have largely replaced traditional manual leveling methods, offering automation, speed, and pinpoint accuracy. Laser levelers - often referred to simply as laser levels - have become essential in a wide range of industries, from civil engineering and infrastructure projects to interior remodeling, equipment installation, and high-tech manufacturing.
Headline
Market News
Automated Food Manufacturing
The food processing industry is embracing automation and AI to boost efficiency, reduce errors, and ensure food safety. From material handling to packaging, smart systems enable stable operations, real-time monitoring, and data traceability—key to meeting market demands and securing global certifications. As more companies adopt AI and visual inspection technologies, the industry is entering a new era of data-driven, ESG-focused transformation.
Agree