In recent years, although China's hardware and tools industry has developed rapidly, it is far behind the development of the machine tool industry. Most of the efficient and advanced cutting tools used in production are imported from abroad (including those made in China by foreign-funded enterprises). We now export many cutters, but mainly cheap and low-grade standard cutting tools. In 2004, China produced about 2.5 billion cutting tools, of which 2 billion were cheap and low-grade cutting tools (most of which were exported). In the following years, the export of middle and low-grade cutting tools remained basically. In the U.S. market, medium-sized twist drills cost about $10 each, while low-grade twist drills made in China cost only $1 and are used as hand tools. China now has the world's largest automotive industry, but the automotive industry imports high-efficiency production lines from abroad, using 80% to 90% of the tools are still imported (including domestic and foreign enterprise products). At present, China's cutting tool production and marketing situation is that high-end advanced cutting tool products mainly rely on imports from abroad, while low-end cutting tool products malignant expansion (most exports), this situation must be changed as soon as possible. Standard cutting tools are widely used in China's machinery manufacturing industry, while advanced cutting tools with high efficiency are widely used in developed countries, which makes the processing efficiency of China far lower than that of foreign countries. China's hardware tool factories still produce a large number of traditional standard tools, and some small tool factories also produce a large number of low-grade tools. According to statistics, China consumes 40% of the world's tool materials, but the sales revenue only accounts for 12%-15% of the world's tool industry. The gross profit rate of foreign tool enterprises is about 40%, while the profit of our tool factories is very low, and some tool factories are still losing money. At present, the tool factories in China mainly produce large quantities of traditional standard tools. From the technical development trend of machinery manufacturing industry, the proportion of efficient CNC machine tools in our factories will increase year by year in the future, and the demand for efficient and advanced tools will increase rapidly, while the demand for traditional standard tools will decrease year by year.
The labor productivity of China's manufacturing industry is only 1/3 to 1/5 of the US and Japan. Many of China's machinery products are cheap, but the quality is low. Recently, due to the appreciation of RMB and the rapid rise of domestic labor costs, coupled with the economic cold wave and crisis, it has seriously affected the export of middle and low-grade products, and even forced us to improve the technical level of machinery industry as soon as possible, turn the crisis into an opportunity, and strive to become a manufacturing power. The rapid development of China's machinery manufacturing industry from 2000 to 2008 witnessed the rapid development of China's machinery manufacturing industry from 2000 to 2008. The output of automobiles, machine tools, shipbuilding and power generation equipment not only increased rapidly, but also the product level improved continuously. The market share of domestic machine tool output value was 56.3% in 2007, 61% in 2008 and 70.1% in 2009. In 2008, China's machine tool industry accounted for 19.44 billion US dollars, ranking first in the world; 13.96 billion US dollars for machine tools, ranking third in the world; 2.11 billion US dollars for export machine tools, ranking sixth in the world; 7.59 billion US dollars for imported machine tools, ranking first in the world, with imports and exports of machine tools exceeding 5.48 billion US dollars. In 2009, the growth rate was reduced by the cold wave of the world economy, but the impact on foreign countries was even more serious. Last year, China ranked first in the world in the production of machine tools, imported machine tools amounted to 5.9 billion US dollars, exported machine tools amounted to 1.41 billion US dollars, imported and exported machine tools amounted to more than 4.49 billion US dollars, and imported and consumed machine tools ranked first in the world for eight consecutive years. In 2007, the output of CNC machine tools in China was 123257, an increase of 32.6% over 2006. In 2008, China's CNC machine tools were affected by the world economic crisis, with a output of 122,211 units, which is basically the same as in 2007. From January to December 2008, the output of CNC machine tools in China was affected by the economic crisis. After July, the output declined and rose slightly in December. In 2009, the output of CNC machine tools in China increased significantly, reaching 143,904, and the market share of domestic CNC machine tools reached 62%. In 2009, China's machinery manufacturing industry from the overall environment, since the second half of 2008, the machinery manufacturing industry in various countries has been affected by the financial crisis to varying degrees, and several major automobile and machine tool producing countries have suffered particularly serious losses. The production of automobiles all over the world has fallen sharply. China's production and sales of automobiles have not declined, but continue to rise sharply. In 2009, China's automobile production has surpassed the United States and ranked first in the world. In the first half of 2009, the statistics of the main state machine tool production are as follows: in the first quarter of 2009, orders of the Japanese machine tool industry fell by 84.6%, domestic demand and exports declined, affecting sales by 46.2%.
U.S. machine tool orders began to decline in November 2008. New orders in April 2009 were only $97.04 million, 42% less than in March 2009, 78% less than in April 2008 and 71% less than in April 2009. Germany has revised the 2009 annual trend forecast from 7% to 10% to 20%. German machine tool orders fell 70% year-on-year.
Compared with the same period in 2008, Taiwan's machine tool exports dropped 51.9% and imports dropped 84.6% from January to April in 2009. Its total exports dropped 51.9% compared with the same period last year. Exports decreased significantly. Relatively speaking, China's machine tool and hardware industry suffered less damage. According to the general statistics of 177 key related enterprises by China Machine Tool Association, the gross industrial output decreased by 5.0% from the same year in 2009 to May, the sales revenue decreased by 6.2% from the same year, and the total profit decreased by 33.1% from the same year. These data indicate that during the financial crisis, China's machine tool industry did not hurt much. Statistical data show that from January to April 2009, the investment in fixed assets of machine tool industry was 23.2 billion yuan, an increase of 48.8% compared with the same period last year. By May 2009, the machine tool industry declared 30 items of technological renovation projects in the national revitalization plan, with a total investment of 7.21 billion yuan, which effectively improved the manufacturing level and capacity of machine tool industry. In the second half of 2009, the production situation of machine tool industry improved significantly. Since the base of the second half of 2008 was low, from July 2009, the monthly gross industrial output value of machine tool industry increased by double digits year on year, and the specific completion and growth rate year on year were achieved. In the first half of 2010, China's machinery manufacturing industry was in good condition. Overall production and sales were booming, and so was the machine tool industry. The machine tool industry continued to grow at a high speed, with a total output value of 24.422 billion yuan in the first half of the year, an increase of 41.4% over the previous year. The total output value of the machine tool industry was 57.21 billion yuan, an increase of 31.7% over the previous year. The output of metal cutting machine tools is 338,209, of which the output of CNC machine tools reaches 945,191, increasing by 25.8% and 52.2% respectively. The profit of metal cutting machine tool industry was 2.27 billion yuan, up 68.3% year on year, and the profit rate of output value was 5.0%, which increased by 1.1 percentage points year on year. In the first half of 2010, China's total export of machine tools and tools industry was US$3.11 billion, which increased significantly compared with 2009, but still decreased by 7.1% compared with the same period in 2008. The investment boom led by the domestic economic stimulus plan has led to a significant increase in the import of machine tools. The import of cutting tools increased by 12.7% in the first half of 2010 compared with the same period in 2008. The import of cutting tools increased especially rapidly, reaching $530 million in the first half, an increase of 138.0% over the same period last year.
China's exports are cheap medium and low machine tools, and imports are expensive CNC and precision machine tools. Nowadays, the situation of international economic development is not clear. Facing the complex and changeable situation at home and abroad, although the situation of China's machinery industry in the first half of 2011 is good, the trend is not optimistic. Compared with the powerful manufacturing countries in the world, there is still a big gap in technology. We should study how to improve the product grade, increase high-end products, improve the level of manufacturing technology, and strive to innovate. In the post-financial crisis era, China's machine tool industry strives to realize the transformation from a big machine tool country to a powerful machine tool country. The development of China's tool industry in 2005 consumed about US$1.7 billion in cutting tools and in 2006 consumed about US$2 billion in cutting tools, including about US$1 billion in imported cutting tools. In 2007, the rapid development of the tool industry increased sales revenue by about 28%. In the first three quarters of 2008, the tool industry continued to develop at a high speed, growing by more than 20%, but after October, the decline was obvious, but the annual growth was still more than 12%. Influenced by the world economic crisis, the tool industry continued to decline in the first half of 2009, but the overall economic situation has begun to pick up after July to August, and the tool industry has gradually improved. If China's hardware machinery industry wants to achieve further development in 2012, it must make great efforts in technology to develop more excellent and precise products with high-quality and high-tech content.