China is world's largest producer of machine tools | Gardner

[Bussard Ramjet]

Is it any surprise that the world's largest manufacturer is also the world's largest consumer and producer of machine tools?

Manufacturing, value added (current US$) | Data | Table

China is very much like early 1941 USA just before the attack on Pearl Harbor. You all know what happened after the Japanese foolishly attacked right?

No. At that time, the US had already been the largest economy for a long time, that is more than 50 years. It also had built very good technical institutions and was at par with Europe.

 

[Kyusuibu Honbu]

Still it does not justifies us being behind Turkey (no offense to any turks)good news is with our new govt we will be in top 10 in a couple of years

Turks are giving good competition to India in other areas of manufacturing as well

 

[Echo_419]

Turks are giving good competition to India in other areas of manufacturing as well

Indeed Turkey should not be ignored

 

[Keel]

Yes.

Even if you assume China didn't export anything produced in 2014, the consumption-production gap was ~$8 billions, that's like TOTAL of all US consumption!

As I have mentioned in the other posts, Japan, South Korea, Germany & Taiwan are deeply integrated with China's industrial base, they are well positioned in the upstream as suppliers of machine tools (and/or components). To be exact, machine tools are capital goods, an investment, an asset (booked as depreciation on P&L), for production not consumption.

For a lot of finished consumer goods made in China (and thus counted as China's output), a lot of values are added along the value/supply chain in Japan, South Korea, Germany & Taiwan. That's why while it's important to measure industrial output, it's also important to measure industrial value added.

I think your concept on that is just partially correctl So it is never "exact"

India's service and medicine is very advanced, last month Modi visited China, we had made agreement of importing more service and medicine products from Indian company.

What service? IT? Film productions?

In respect of the pharmaceutical industry, I think Indians are competitive because their natural resources for making medicine are as diversed and bountiful as China's if not more. India's law and enforcement on using humans as "guinea pigs" for new drugs are very laxed for good measure.

India can also produce drugs cheaply without having to pay premium for overseas patents BUT on this score I dont know if they are allowed to export these generic "patented" drugs to China.I wish they could.

China print-art painting

 

[Bussard Ramjet]

What service? IT? Film productions?

In respect of the pharmaceutical industry, I think Indians are competitive because their natural resources for making medicine are as diversed and bountiful as China's if not more. India's law and enforcement on using humans as "guinea pigs" for new drugs are very laxed for good measure.

India can also produce drugs cheaply without having to pay premium for overseas patents BUT on this score I dont know if they are allowed to export these generic "patented" drugs to China.I wish they could.

China print-art painting

Com'on man!

There are few things we do good, and generics is among them. Don't take that away!

 

[TaiShang]

The 2015 World Machine Tool Survey
High productivity is at the heart of a healthy manufacturing economy. Low interest rates make it cheaper to get increased productivity through investment in capital equipment, like machine tools. In 2014, the largest economies invested at a higher rate, increasing their competitive advantage.


Article From: 5/19/2015 Modern Machine Shop
Click on the graphic above for infographic highlights from the
2015 World Machine Tool Output and Consumption Survey.

In a competitive global manufacturing marketplace, increasing productivity is the name of the game. One way to improve productivity is via a more skilled workforce. Another way is through more efficient equipment, like machine tools. It’s very easy to look at these two means of achieving higher productivity as strictly competitive. For example, this is the view when labor bemoans the introduction of robots or other more efficient capital equipment. But in reality, higher-skilled labor and more efficient machine tools are complementary: Higher-skilled labor is necessary to make the most of more efficient machine tools and vice versa. Therefore, it’s the appropriate combination of the two that leads to higher standards of living.

Exactly how these two factors influencing production are combined is governed by their relative costs. In recent years, the typical skill set of manufacturing laborers around the world has been on the rise. This is evident in the improved quality of machined parts. But a higher-skilled workforce demands higher wages and other benefits. At the same time, interest rates around the globe are hitting all-time lows, which has significantly lowered the cost of capital equipment. This dynamic of rising wage rates and declining interest rates means that it is now relatively cheaper to increase productivity through capital equipment investment. Because machine tools have a hand in virtually everything that is manufactured, the level at which countries invest in machine tools is a sign indicating which are spending with an eye to the future of a more highly skilled workforce. Current machine tool purchasing trends show that the strongest manufacturing countries are making greater investments in the latest machine tool technology.

The 2015 World Machine Tool Output and Consumption Survey reports on the level of investment in machine tool technology by most major manufacturing countries in 2014. Data for this report comes from research conducted by Gardner Business Media, the publisher of this magazine. The 2014 data on production, exports and imports were collected from 27 countries that consume and produce virtually all of the world’s machine tools. Consumption is calculated by adding imports to and subtracting exports from production figures. The data typically are reported in local currencies then converted to U.S. dollars. After this conversion, all of the data in this year’s survey also were inflation-adjusted using the Bureau of Labor Statistics’ Producer Price Index for capital equipment to provide a better historical comparison.

In calculating these world totals for a particular year, we use the data from that year’s top 25 consuming or producing countries. So, for example, the total world consumption in 2002 is from a different set of countries than the total world consumption in 2010. Although the total number of reporting countries changes from year to year, this approach provides a reasonable approximation, because the top 25 consuming or producing countries account for roughly 95 percent of all consumption and production in any given year.

Global machine tool consumption in 2014 was $75.3 billion, an increase of just 0.3 percent from the year before. But among the 10 largest machine tool consuming countries, which generally corresponds with the 10 largest global economies, machine tool consumption increased 1.7 percent in the year. In the other 15 countries whose data were used to estimate the global total, machine tool consumption contracted 7.9 percent. So the countries with a stronger manufacturing base made a much larger relative investment to enhance the productivity gap between them and everyone else.

World machine tool production fell for the third year in a row to $81.2 billion, a decrease of 3.1 percent. However, this rate of contraction in production moderated in 2014 as machine tool builders decreased inventory levels, bringing supply into a better balance with demand. This is an indication that machine tool prices around the world should be firming up.

This year, I am forecasting that total world machine tool consumption will fall 0.4 percent to $75 billion. However, while the 10 largest machine tool consumers will see a decline of 1.1 percent, the remaining 15 countries in the top 25 will see consumption increase 3.7 percent.

World Consumption Highlights

China remained the world’s largest consumer of machine tools last year by a wide margin, although its consumption dropped to $31.8 billion in 2014 from $40.8 billion in 2011—a 22 percent decline over three years. Because China’s money supply is growing at nearly its slowest rate in decades and its industrial production has grown at a continually slower rate since January 2012, I think China’s machine tool consumption will decline again in 2015. I am forecasting $28.6 billion in machine tool consumption for the country.

At $8.1 billion, machine tool consumption was essentially unchanged in the United States, which is the world’s second-largest machine tool consumer. I expect U.S. consumption to increase to $10.4 billion in 2015. Here is my rationale for why that is likely to happen.

Germany remained the third-largest machine tool consumer in the world in 2014; however, its consumption dropped by 10.8 percent, the second-largest percent decline of any country among the top 10 consumers. Germany’s money supply, industrial production and capacity are all growing at decelerating rates, therefore I think its machine tool consumption is likely to fall by another 8 percent this year.

Japan and South Korea remained in the top five of consuming countries, but they traded places on the list, with Japan rising to No. 4 and South Korea falling to No. 5. Last year, Japan’s machine tool consumption increased 39.4 percent, the largest increase of any country. It should see an increase in consumption in 2015 as well, albeit a much smaller one. Consumption increased by 13.2 percent in South Korea in 2014, and, like Japan, it should see a smaller increase in 2015.

Two countries that have seen significant declines in machine tool consumption in recent years are India and Brazil. In 2011, both countries consumed close to $2.5 billion and were ranked No. 6 and No. 7 in the world, respectively. However, in 2014, India consumed just $1.4 billion of machine tools and Brazil just $1 billion. India seems to be turning around, however, as I think consumption will increase in 2015 for the second year in a row. Brazil looks to be a different story. I believe consumption will drop to $700 million this year, as both its industrial production and capacity utilization are contracting at rapidly accelerating rates.

World Production Highlights

In addition to topping the list of machine tool consumers, China also has been the world’s largest producer of machines tools since 2009, but its production fell in 2014 to $23.8 billion from its peak of $29.5 billion in 2011. Given the nature of China’s machine tool market and the cooling off of its economy, production is likely to decline further in 2015.

For the second year in a row, Germany was the second-largest producer of machine tools; however, production declined roughly 20 percent. The county is also the world’s largest exporter of machine tools.

In Japan, machine tool production dropped nearly 50 percent from 2011 to 2013, but production rebounded in 2014, increasing to $12.8 billion. This put Japan in third place in the world, just $100 million behind Germany.

South Korea moved up one spot to No. 4 on the list of top machine tool producers, while Italy fell one spot to No. 5. Both countries produced more than $5 billion in machine tools.

Since 2011, Brazil’s machine tool production has taken a dramatic hit, dropping nearly 70 percent to $300 million from $900 million.

In addition to the consumption and production data summarized here, the 2015 World Machine Tool Output and Consumption Survey contains export and import data for each of the 27 reporting countries. You can find the full report with the online version of this article, as well as a link to forecasts and leading indicators for the top 25 consuming countries.

 

[AndrewJin]

Com'on man!

There are few things we do good, and generics is among them. Don't take that away!

You made this comment at 7am Beijing time. And if u were in India, it must be 4-5am. Are u working for call center?

 

[Bussard Ramjet]

You made this comment at 7am Beijing time. And if u were in India, it must be 4-5am. Are u working for call center?

No! I am far too intelligent for a call center! Perhaps I can reveal my identity to you, but not necessarily to others. How to do that? Any suggestions? Perhaps you can give me your email or something.

 

[AndrewJin]

No! I am far too intelligent for a call center! Perhaps I can reveal my identity to you, but not necessarily to others. How to do that? Any suggestions? Perhaps you can give me your email or something.

I think you could be one working in a call centre. When I was abroad, I tried to change my flight ticket so I telephoned Singapore Airline. But I couldn't understand his words...My listening is too bad.

 

[Bussard Ramjet]

I think you could be one working in a call centre. When I was abroad, I tried to change my flight ticket so I telephoned Singapore Airline. But I couldn't understand his words...My listening is too bad.

Well you can find out, if you do indeed want my identity. But is it not open for all.

 

[Beidou2020]

Number 1 in both production and consumption.

 

[+4vsgorillas-Apebane]

You made this comment at 7am Beijing time. And if u were in India, it must be 4-5am. Are u working for call center?

Good catch. Your probably right.

 

[TaiShang]

CNC machine tool operator boosts 'Made in China'

By Zhu Lingqing | chinadaily.com.cn | Updated: 2017-11-16

Editor's note: The "Chinese Dream • Craftsman of Great Powers" campaign is carried out jointly by Cyberspace Administration of China and All-China Federation of Trade Union and participated by central news websites, local key news websites and major commercial websites. The activity, aimed at in-depth studying, promoting and implementing the spirit of the 19th National Congress of the Communist Party of China, carries forward the model worker spirit and craftsman spirit to create a social conduct of honoring work and ethos of respecting professional dedication by reporting the stories of typical grassroots craftsmen.

On a field trip to Southwest China's Sichuan province 14 years ago, Liu Ping, a tool operator of a computer numerically controlled (CNC) machine, got a chance to see the local military products.

"It is better for these kinds of products to be made on our machines," he said.

His words interested the director of the military product enterprise. After sharing technical issues with each other, Liu earned his company a trial-produce order from this enterprise.

Liu completed the order in just three days, much shorter than the client's expectation. It laid the basis for Liu and his company, Chongqing Chuanyi Control Valve Co Ltd (CCV), to get involved in manufacturing the components of Long March-2F carrier rockets in the following years.

"However, it was not easy at all to make that batch of products," Liu admitted. "Although we had already accumulated some experience in machining thin-wall parts at that time, this order contained all the difficulties."

"They ordered a tail nozzle of the rocket flame thrower, which was designed to be 180 mm in length and 1.3 to 1.5 mm in its single side wall thickness. Having many slant and curved surfaces, it is one of those most difficult-to-machine products."

Liu spent a whole day on adjusting the machining process and grinded cutting tools by himself to reduce deformation of parts in machine process.

In Liu's 30-year career, he has received a variety of difficult and complex parts orders like this, which have given him a wealth of experience in processing pieces that have slender shaft, thin-wall or abnormal structure.

Between 1987 to 2000, when he was just an ordinary machine operator in CCV's machine shop, Liu could complete more than 200 percent of the quota production task and process more than 300 pieces of difficult and complex parts of various specifications and kinds annually in average.

In addition, with ingenuity and bold study, Liu made his quality index reach 99.9 percent.

Liu Ping, a computer numerically controlled (CNC) machine tool operator working at Chongqing Chuanyi Control Valve Co Ltd, is pictured at the company's workshop on Nov 14, 2017. [Photo by Zhu Lingqing/chinadaily.com.cn]

Breaking through the manufacturing bottleneck

In 2001, Liu asked his leader to transfer him from the ordinary machine shop to the company's newly established CNC workshop.

There was a lack of CNC machine tool operators at that time and Liu wanted to enter the new field.

"I bought a computer in the late 1990s. I could feel this computer numerical control will be the trend and the future," he recalled.

Already well aware of the importance of keeping up with the rapid pace of innovation, Liu made every effort to study the new CNC machine tool.

After diligent studying and strenuous training, Liu mastered how to give full play to the functions of the CNC lathe. Not only he could efficiently complete the processing task, he could also explore process and tool solutions for high-tech products.

Since 2011, Liu has been involved in the research and development of HVH Black Water Control Valves, Butterfly Valves, High Pressure Ball Valves and many other special purpose valves, some of which could only be imported from overseas companies in the past.

"We gradually broke up the technical monopoly of international companies. Our products not only replaced the imported one, they are also exported to foreign markets such as Kazakhstan," Liu said.

Liu's brilliant craftsmanship has brought him many honors. He has a national-level skilled master studio named after him and was elected as one of the 10 craftsmen representing Chongqing's craftsman spirit last year.

"There is no perfect product. What I can do is try my best to improve the accuracy of our products. It requires the repeating of tests and the courage to make innovation," he said.

In addition, he would sometimes go to college to exchange knowledge and experience with teachers there, to get a quicker and deeper understanding of the new technologies and skills in the field.

Passing craftsmanship

In charge of his studio, Liu no longer spends too much time in the frontline but plays a significant role in offering technical guidance to workers and coordinating processing issue with CNC machine tool manufacturers.

On Tuesday, he went round in the CNC workshop to check work. Young operators would like to talk to him to get some comments or guidance.

He often works overtime, especially when there are some urgent orders.

"I usually leave home at 7:50 am and come back home from work at 11:00 pm," Liu said.

However, he does not want the hardship of his work to be mentioned too much.

"Fewer and fewer young people would like to do my job, even if it is better paid than many blue-collar works. They think my job is dirty, drab as well as hard, they prefer to become truck drivers," Liu said with pity.

He values patience and the spirit of bearing hardships very much.

"I asked every freshman I taught to learn from standing. They have to develop more patience."

In order to pass his skills and experience to the next generation and spread technical achievements, Liu has compiled several training materials and has published a paper.

"I love the job of machining, and that is why I can persist on and would like to work hard at it," Liu said.

In addition, he believes operators with real rare skills will never be replaced by automatic machines and will be treasured in the future.

"The repeating work can be replaced but the experience never."

http://www.chinadaily.com.cn/business/2017-11/16/content_34611520_3.htm