Recovery in the Global Manufacturing PMI Drives Demand for Machine Tools, According to a New Report by Global Industry Analysts, Inc.
San Jose, California (PRWEB) February 10, 2015 -- Follow us on LinkedIn – The global market for machine tools is forecast to witness growth spurred by the promising recovery of the global manufacturing industry. In the United States, the manufacturing sector is witnessing growth supported by the gains in GDP, and the “No Budget, No Pay Act of 2013”, which allows the US treasury to borrow funds as required to keep the government in action. With no political standoffs on the debt issue expected in the future, the fiscal cliff drama is receding into the background eliminating the threat of debt default, and leaving the US economy to borrow, expand, and create new employment opportunities. Domestic manufacturing in the country is also poised to benefit from increased re-shoring of manufacturing activity related to chemicals, metals and other industries which tend to benefit from cheap natural gas prices. Existing challenges to offshoring such as, increasing labor costs in China, volatile global fuel prices and transportation costs and the resulting disadvantages of maintaining a long geographically dispersed supply chain, will help open up opportunities for re-shoring. In addition, the stable GDP outlook for the year 2015 will encourage an increase in domestic production of manufactured goods, thus benefiting the market for machine tools.
In Europe, the relative financial stability and the slow return to economic profitability and growth are encouraging resurgence in the domestic manufacturing sector. Subsiding focus on austerity, improvement in government spending, improving household income levels, resurgence in consumer and business sentiment, spending and consumption, are factors fuelling the recovery process in the region. The recent launch of a new Manifesto by the European Commission and proposed policy amendments to improve the competitiveness of the domestic manufacturing industry bodes well for future market growth in the region. The manufacturing industry remains vital to Europe’s economic recovery. Interestingly, the debt crisis in the region has redirected focus onto the manufacturing sector, which has been in decline for the last decade. To build a sustainable economy in the region, the EU has implemented a target of increasing industrial output in the region to over 20% of the GDP by 2020. Offshoring of manufacturing jobs to Asia is already declining, while a parallel increase in re-shoring is sprucing up domestic manufacturing opportunities. To reinstate its manufacturing base, EU is stepping up investments in new technologies such as additive manufacturing, 3D printing, robotics, and nanotechnology, among others. Industrial rejuvenation efforts are therefore expected to benefit the market in the coming years.
As stated by the new market research report on Machine Tools, Asia-Pacific represents the largest market worldwide. The region also ranks as the fastest growing market with a CAGR of 9.4% over the analysis period led by rapidly growing manufacturing and industrial activity, especially in countries such as India, Thailand, Malaysia, Taiwan, and South Korea. Government initiatives such as development of SEZs, industrial corridors, industrial clusters, fab cities and textile parks, and subsidies and tax cuts to manufacturing groups are also fueling growth in the industrial sector in the region. Improvements in road, rail and marine infrastructure and trade related benefits from governments such as abolishment/reduction in import duties and excise duties on certain imported raw materials and semi-finished goods and special export related incentives on finished goods, machinery and equipment, represent other factors spurring growth in the region.
Major players in the market include Allied Machine & Engineering Corp, Amada Co. Ltd., Amada Machine Tools America Inc., Dalian Machine Tool Group Co., Ltd, DMG Mori Seiki AG, DMG Mori Seiki Co., Ltd., DMG-Mori Seiki USA, Doosan Infracore Co. Ltd., FANUC Corporation, GF Machining Solutions, Gildemeister Italiana S.p.A. , Haas Automation Inc., Hardinge Inc., Hyundai WIA, JTEKT Corporation, Kennametal Inc., KMT Waterjet Systems Inc., Komatsu NTC Ltd., MAG IAS GmbH, Makino Milling Machine Co. Ltd., Okuma Corporation, Otto Bihler Maschinenfabrik GmbH & Co. KG, Sandvik AB, Sandvik Coromant, Schuler AG, Shanghai Machine Tool Works Co., Ltd, Shenyang Machine Tools Co. Ltd., Sodick Inc., Spinner Werkzeugmaschinenfabrik GmbH, TAJMAC-ZPS, Trumpf Group, Walter AG and Yamazaki Mazak Corporation.
The research report titled “Machine Tools: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies. The report provides market estimates and projections for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (China, India, South Korea, Taiwan and Rest of Asia-Pacific), Middle East/Africa (South Africa and Rest of Middle East/Africa) and Latin America (Brazil and Rest of Latin America). Key Product Groups/Segments analyzed in the report include Metal Cutting Tools (Boring & Drilling Machines, Gear Cutting Machines, Grinding, Honing, Lapping, Polishing & Buffing Machines, Lathe Machines, Milling Machines, Machining Centers, Station Type Machines and Other Metal Cutting Tools), Metal Forming Tools (Punching & Shearing Machines, Bending & Forming Machines, Metal Working Presses and Other Metal Forming Tools), Special Machine Tools (Waterjet Cutting Machines, High Power Laser Cutting Machines, Electrochemical Machines, Electrical Discharge Machines). Key end-use sectors analyzed include Automobile, Aerospace/Defense, Electronics/Electrical and Others.
For more details about this comprehensive market research report, please click here
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes 1500+ full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
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