High Growth stage (1998-2011)

Affected by the Asian financial storm, market demand is sluggish, but also because of structural contradictions in China’s machine tool industry, the domestic market share has declined year by year. By the end of the 1990s, the market share of domestic machine tools declined significantly, and the loss of enterprises expanded. In the face of severe survival and development challenges, the state to support the domestic machine tool industry to get out of trouble, open the road to transformation and upgrading, In October 1998, the Ministry of Finance and the State Administration of Taxation jointly issued a preferential policy on the value-added tax of CNC machine tool products – “Notice on the issue of value-added tax of CNC machine tool products before they are returned” (Finance and taxation Word [1998] No. 70). The policy has been implemented for 10 years, which is conducive to encouraging enterprises to promote the industrialization of scientific and technological innovation achievements, improve the market share and core competitiveness of domestic high-end CNC machine tools, and implement the principle of inclusive and fair, and is widely welcomed by machine tool enterprises. By 2000, China’s CNC machine tool varieties reached 1500 kinds, developed a five-axis linkage machining center and can be put into the market. In the 21st century, China has opened a period of rapid economic growth, and China’s machine tool industry has also ushered in a leap, a large number of foreign brands have entered and private enterprises have sprouted. Shenyang Machine tool Factory, Dalian Machine tool Factory, Chongqing Machine tool and other state-owned machine tool enterprises have aggressively acquired advanced machine tool manufacturers in Europe, and China has become the world’s largest machine tool producer for the first time in 2009. In 2009, the 04 special project of great significance and role for the development of China’s machine tools was officially launched, resulting in a large number of high-grade CNC machine tools and basic manufacturing equipment.

(4) Down Stage (2012-2019)

Since 2012, affected by the shrinking demand of downstream industries, China’s machine tool industry has entered a downward cycle. Due to the increasingly serious homogenization of products, lack of core technology, merger and acquisition failure and other multiple reasons, state-owned enterprises gradually withdrew from the historical stage, the industry pattern cleared. At the same time, as China’s economy enters the new normal of transformation and upgrading, a number of emerging private machine tool enterprises stand out. Going back to the end of the last century, especially since 2000, China’s 3C products, household appliances and auto parts manufacturing industry has developed rapidly, and the demand for processing machine tools has risen rapidly, which has created a large number of new private machine tool enterprises to rise rapidly, and become a new growth pole and industry new force in the machine tool industry.

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(5) Transformation and upgrading, upward cycle (2019-)

After the low point of the inventory cycle in 2019, the machine tool industry gradually recovered, and the resonance effect of the next Kitching cycle low and Jugla cycle low around 2022 and 2023 has caused a slight setback in the production expansion of metal cutting machine tools. With the support of technological innovation, the popularity of CNC machine tools, independent brand construction, domestic toward the high-end market, the recovery of international cooperation and opening-up after the epidemic, and the bottoming out of the size cycle, the future industry trend is stable and good.

2, the machine tool industry from the “eighteen Arhats” to the rise of private enterprises industrial changes

China began to lay out the machine tool industry as early as the “One Five” period, and developed 18 representative key backbone enterprises in the machine tool industry, known as the “eighteen Arhat”, and the “seven institutes and one institute” jointly established a more complete machine tool industry and scientific research system in China. At the same time, with the development of the country and the introduction of foreign machine tool technology, machine tool enterprises have gradually grown, and there has been a large amount of accumulation and progress in the field of technology, laying the foundation for the rapid development of the manufacturing industry after the reform and opening up. After the reform and opening up, the Ministry of Machinery Industry promoted the 18 machine tool state-owned enterprises to carry out technical cooperation with the United States, Japan and Germany. After 2000, with the revitalization of China’s manufacturing industry, the “18 Arhats” grew rapidly and launched a wave of overseas mergers and acquisitions. Since 2011, with the global economy in a downturn, China’s economy continued to decline, China’s machine tool industry began to turn downward. Due to the lack of core technology, domestic enterprises have long been squeezed in the low-end of the industrial chain. In addition to the independent survival of Jinan Second Machine Tool Factory, which insisted on independent technology research and development, the eighteen Arhats gradually withdrew from the historical stage.

Machine tool industry state-owned enterprises gradually withdraw, private enterprises ushered in major opportunities. After the “eighteen Arahs” gradually derailed due to problems such as technical core and management mechanism, high-end manufacturing industry returned to Europe and the United States, while the domestic machine tool industry was greatly impacted, and the industry as a whole showed a downward trend. In the case of private machine tool enterprises with unique advantages, the drawbacks exposed by state-owned enterprises from prosperity to decline bring more reference significance to private enterprises. At present, there are more than 25 listed companies in China’s machine tool industry, with a scale of more than 10 billion Haitian Seiko, Shenyang Machine tool and so on. With the recovery of the manufacturing industry, the machine tool industry will start a new cycle, the starting point of the cycle or will come.