Signs Inspire Bright 2012 Forecast for Taiwan's Machine Tool Industry
2012/09/25 | By Ken LiuTaipei, Sept. 25, 2012 (CENS)--The Taiwan Association of Machinery Industry (TAMI) estimated Taiwan's machine tool industry to generate US$5.5 billion of revenue and US$4.5 billion of export this year, increasing 10% and 11% from last year, respectively.
The TAMI made the bright 2012 forecasts for Taiwan's machine tool industry based on the success of the Obama administration's policy in cutting taxes to boost investments and a third round of quantitative easing (QE3) intended to offset impact of mainland China's economic growth slowdown.
These developments also inspired bright expectations that worldwide the industry is likely to generate revenues of up to US$100 billion by the end of this year, surging 12% year on year.
The American market for machine tools is projected to rise 50% from last year, to US$10 billion this year, with US$7 billion filled by imported products.
German machine tool industry's production value is estimated to rise 6% from last year, to 10.2 billion euro this year. The industry in Japan is expected to see production value of US$18.6 billion and exports of US$15 billion this year, increasing 5% and 11% from last year, respectively.
Mainland China's slowing economic growth has promoted the mainland's manufacturers to shift attention to exports. Nevertheless, their export efforts have been confronted with global recession, hurting their needs for the middle- and low-end machine tools that they regularly buy from Taiwanese suppliers.
To make up for sales recession in mainland China, Taiwan's machine-tool manufacturers are stepping up sales efforts in America. Kao Fong Machinery Co., Ltd. executives pointed out that the company plans to triple the sales in America as a percentage of its total revenue to 15% next year.
Forecasts on 2012 Revenues of World' Major Machine Tool Economies
Economy | Forecast revenue | YoY change (%) | Forecast export value |
Germany | 10.2 B. euro | 6 | N/A |
Japan | US$18.6B. | 5 | US$15B. |
Taiwan | US$5.5B. | 10 | US$4.5B. |