Wu Bolin, the Director General of the China Machine Tool Industry Association, predicts that the output value and output in 2009 may be the same as in 2008. This is consistent with the survey results, 95% of the large companies in the survey's production target in 2009 is the same as in 2008.
First of all, the output value and sales still continue to develop at a relatively high speed. From January to October 2008, 4,694 companies in the machine tool industry completed a total industrial output value of 283.53 billion yuan, an increase of 31% over the same period. In October, the total industrial output value was 29.70 billion yuan, a year-on-year increase of 22.1% and a decrease of 7.0% from the previous month.
Second, the product structure has changed, and market demand adjustments continue to accelerate. From January to October 2008, the total output value of the metalworking machine tool industry increased by 25.6% over the same period, and the Taiwanese share increased by 1.6% over the same period. This shows that the structure of China's machine tool products is changing, and the product grade is improving.
Third, product inventories increased and production and sales rates declined. From January to November 2008, the accumulated stocks of finished products of key association enterprises reached 8.6 billion yuan, an increase of 22.5%. The sales rate of industrial products was 95.5%, down 1.7% year-on-year. The reason for this phenomenon is that the adjustments made by the industry since the second half of 2008 are not in place and the strength is not enough.
Fourth, most companies will contract down and orders will decrease next year. In the past seven years, machine tool companies have a more common phenomenon at the end of the year: 10% of companies have contracts for one to two years, 30% have one-year contracts, and a small number of companies have 7 to 10 Monthly contract. However, the current situation is not optimistic. The Association's survey of 30 companies in the industry shows that orders for most machine tool companies have fallen by 30% to 50%.
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