Facing the big but not the strong machine tool industry to implement strategic changes

At the end of the “Eleventh Five-Year Plan” period, China’s machine tool industry has been ranking first in the world in terms of production and consumption in terms of overall scale. In 2009 and 2010, the scale of industrial economy ranked first in the world; in 2010, the output value of metal processing machine tools was 20.9 billion U.S. dollars, accounting for about 1/3 of the world; in 2010, the machine tool consumption was 28.3 billion U.S. dollars, accounting for approximately the world's machine tool consumption. 45%. “The development achievements are enormous, but we should also see the problems that restrict the development of the industry. The relative lag in technological progress and the emphasis on the expansion of the mode of development cannot be ignored.” Wu Lin, executive vice president of the China Machine Tool Industry Association, recently made the move to the industry. The company emphasizes the above point of view. Wu Bolin pointed out that the main driving factors for the rapid development of China's machine tool industry in the past ten years are the sustained strong domestic market demand, the driving force for the development of the enterprise institutional mechanism, and the strong support of the national industrial policy. Due to the strong market demand and the scale orientation on the assessment, industry enterprises generally expanded their production capacity during the “Eleventh Five-Year Plan” period. The phenomenon of large-scale, heavy-duty products, diversified varieties, and complete specifications is very common. Some companies that produce small general-purpose machine tools have also launched large-scale, heavy-duty machine tools such as large-scale floor-standing boring and milling machines and gantry machining centers. In scale expansion, the company's production conditions and technological levels have indeed improved to varying degrees, but product technology upgrades are not significant. The problem of product structure assimilation, low-end large-scale and heavy-duty machine tool excess production capacity is quite serious. In comparison, technological progress and management upgrades have played a relatively limited role. Deep-level technologies and industrialization technologies have failed, and the proportion of high-level innovation achievements in industrialization has not been widely used. Therefore, from an overall point of view, the industry still does not have a fundamental escape from the development model that is characterized by scale expansion. Although the industrial scale is very large, the level of product structure is low, and it is still at the low-end of the global industrial chain. It can be seen that at this stage, the basic characteristics of the machine tool industry are "big but not strong," and the main contradiction in the industry is the conflict between the accelerating upgrade of the domestic market demand structure and the industry's supply capacity. Industry is at a critical turning point. The adjustment of the industrial structure is imperative. “Big but not strong” is a necessary stage for the development of the industry. It is also closely related to the overall level of industrial development in China. As early as around 2007, the central government began to implement policies that adjusted the industrial structure and changed the mode of development. Due to the emergence of the international financial crisis, this process was forced to be postponed. After the financial crisis accelerated the implementation of this policy, people have a deeper understanding of its necessity and necessity. The social science and technology innovation and the awareness of energy conservation and environmental protection have risen unprecedentedly. The needs of various industries are upgrading. The upgrading of products and the improvement of quality standards will inevitably bring about the need for upgrading of manufacturing equipment. Under the influence of the deceleration of growth rate and the dual factors of structural adjustment and transformation of the entire society, the current market demand structure is accelerating. This trend will make the contradictions in the industrial structure that could not be satisfied in the middle and high-end markets and the overcapacity in the middle and low-end markets become more prominent. A comprehensive analysis of the industry's basic characteristics at the current stage, major contradictions and significant changes in the recent domestic market, it is not difficult to judge, the machine tool industry is in a key turning point of major strategic changes. First of all, from the perspective of the national development strategy, high-end machine tools and tools rely heavily on imports, which is a threat to national defense and economic security. Some developed countries have always embargoed and blocked China from cutting-edge products. Therefore, the state has always attached great importance to the equipment manufacturing industry. For example, high-end manufacturing is listed as one of the strategic emerging industries and major projects such as high-end CNC machine tools and basic manufacturing equipment are established. Changing the status quo of large-scale imports of high-end machine tool products is an unshirkable responsibility of the industry. Second, the strategic shift is already an inevitable choice for the survival and development of the industry. With the deceleration of the macro economy and the rapid upgrading of the demand structure, the market has been unable to support the development model of simple capacity expansion in the past. The production capacity of medium and low-end products will be severely surplus, and the demand for high-end products will not be met by the industry. Without strategic changes, problems will arise in the survival and development of the industry. In addition, the development of industry and enterprises in recent years has laid a solid foundation for the entire industry to implement a strategic transformation from big to strong. The establishment of the three iconic phase goals, the path of “change from big to strong” becomes clearer According to the current status of the industry and the objective requirements for realizing the industry’s “change from big to strong” strategy, Wu Bolin proposes the machine tool industry during the “12th Five-Year Plan” period. It is necessary to strive to achieve the three goals: to provide breakthroughs in the provision of equipment and services for the core manufacturing industries in key industries; and to increase the domestic market share of medium-to-high-end CNC machine tools, and to increase the domestic market share of medium-to-high-end CNC systems and functional components. Significant increase; the formation of a number of world-renowned brands and competitive companies. The realization of the three landmark targets will lay a solid foundation for the future development of China's machine tool industry. The manufacture of aerospace, marine, automobile and power generation equipment is a key industry in national economy and national defense security, and is also the most important service area in the machine tool industry. The core manufacturing areas in these industries (such as aero-engines, automotive engines, marine diesel engines, and nuclear power unit manufacturing) have high overall performance requirements for the required machine tools and equipment and are typical high-end market segments. Wu Bolin pointed out that during the “12th Five-Year Plan” period, the machine tool industry must concentrate on the strength of the entire industry, and on the basis of the service achievements already obtained, quickly shift to the development of the capacity of developing mid-to-high-end market segments. At the same time, we must closely track the development of strategic emerging industries and provide them with advanced and applicable machine tools and equipment.

The market share of medium-to-high-end CNC machine tools in the domestic market, and the low market share of medium-to-high-end CNC systems and functional components in the domestic market are the concrete manifestations of the current industry's major contradictions. The goal of achieving significant improvement in the above two rates is an important indicator of the improvement of the industrial structure level and core competitiveness of the machine tool industry, and the main direction of the industry during the “Twelfth Five-Year Plan” period. According to the “Twelfth Five-Year Development Plan” of the machine tool industry, in 2015, the domestic market share of domestic CNC machine tools will strive to reach over 70%.

Having a number of world-renowned brands and advantageous companies is another important sign of a powerful machine tool manufacturing country, and it is also an inevitable requirement for the industry to change from a big change to a strong one. The formation of a number of world-renowned brands and advantageous enterprises will surely promote the overall improvement of the overall quality and structural level of the industry, and accelerate the process of transformation of the industry from big to strong. Wu Bolin expressed his eager expectation to outstanding enterprises that are interested in creating world-renowned brands during the 12th Five-Year Plan period: “We must incorporate brand building into our corporate development strategy, unify our planning, and implement the system. Rely on technological and management innovations, leverage our strengths, and focus on the market. The goal is to provide sophisticated products and services for the mid- to high-end market, and to nurture the company's unique brand advantages.”