Machine-tool industry limiting growth in the motion control market

The machine-tool industry continues to be the largest sector for the global motion control market.

02/01/2013


IHS has acquired IMS ResearchThe machine-tool industry continues to be the largest sector for the global motion control market. Sales of general motion control (GMC) and computer-numerical control (CNC) products to the machine-tool sector were valued at $5.4 billion in 2011, almost 45% of all motion control revenues. The machine-tool industry grew strongly in 2010 and 2011, from which the motion control market benefited with revenue growth in excess of 20% in both of those years.

The situation changed in 2012, and weak demand in the machine-tool sector is now limiting sales of motion controls. Data published by machine-tool associations on the year-on-year performance of orders in 2012 showed a grim picture of the machine-tool market for the three largest producers: China, Japan, and Germany. At IMTS in September 2012, the CMTBA announced that machine-tool orders had decreased 30% in China. Through September, the German association VDW reported a decrease of 11% for orders, and the Japanese association JMTBA reported a 5.1% decrease for orders. In November, machine-tool orders declined for a seventh straight month in Japan, dropping below 90 million yen for the first time in 25 months.

The relationship between the performance of the machine-tool industry and motion control sales cannot be fully understood without taking into account the order backlogs and buying patterns of the machine builders (OEMs). Machine-tool associations also track machine-tool production, which has continued to grow in 2012 because of a large backlog of orders. Current backlogs exceed 8 months in Germany and 5 months in Japan. Since machine-tool builders are still increasing their production output, motion control sales to the machine-tool sector are forecast to have grown in 2012. However, with only 1.8% growth in EMEA and 1.4% in Japan, growth is constrained by a change in the buying patterns; OEMs have already reduced or postponed orders of motion control products in anticipation of the effect of falling 2012 orders for machine tools and thus a decline of production. Order backlogs continue to shrink, so machine-tool production in 2013 will feel the full impact of the lower 2012 order level. Sales of motion control products to the machine-tool sector are forecast to suffer even more in 2013, a decline of 0.2% being projected in the Japanese market and increase of only 0.2% projected in the EMEA market.

Unlike the motion-control markets in Japan and EMEA, the Asian motion-control market was hit severely in 2012. With a much shorter order backlog, declines in machine-tool shipments were reported in 2012 in China, the world’s largest producer and consumer of machine tools; sales of motion products to the machine-tool sector in Asia are projected to have declined over 17% in 2012. Both the machine-tool and the motion-control markets are expected to rebound in 2013, in part because of efforts from the Chinese Government, which aims to increase China’s machine-tool production significantly as part of the 12th Five-year Plan. Sales of motion control products to the machine-tool sector in Asia are forecast to grow by 7.4% in 2013.  

On the other hand, the Americas region is currently a bright spot for the motion control market. Machine-tool orders continued to grow in the US in 2012, and sales of motion-control products to the machine-tool sector are projected to have grown by 4.8% in 2012 and to grow by 3.5% in 2013. However, the machine-tool market in the Americas is much smaller than that of Europe, Asia or Japan. With the American market accounting for only 10% of the global sales of motion control products to the machine-tool sector in 2011, the positive effect from the American machine-tool industry is small compared to the negative effects from the industry in the other regions.

With the machine-tool industry currently failing to boost growth in the motion-control market like it did so well in 2010 and 2011, global motion-control sales will see only limited growth in 2012 and 2013. This is particularly true for CNC products, which are used primarily in machine-tool applications. In 2012, global sales of motion controls to the total industrial market are projected to have contracted by 1.9%. The outlook is better in 2013, when the Asian market is expected to recover; but revenue growth is forecast to remain less than 5% due the struggles in the markets in Japan and EMEA.



No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
2016 Engineering Leaders Under 40; Future vision: Where is manufacturing headed?; Electrical distribution, redefined
Strategic outsourcing delivers efficiency; Sleeve bearing clearance; Causes of water hammer; Improve air quality; Maintenance safety; GAMS preview
World-class maintenance: The three keys to success - Deploy people, process and technology; 2016 Lubrication Guide; Why hydraulic systems get hot
Flexible offshore fire protection; Big Data's impact on operations; Bridging the skills gap; Identifying security risks
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Getting to the bottom of subsea repairs: Older pipelines need more attention, and operators need a repair strategy; OTC preview; Offshore production difficult - and crucial
Applying network redundancy; Overcoming loop tuning challenges; PID control and networks
Driving motor efficiency; Preventing arc flash in mission critical facilities; Integrating alternative power and existing electrical systems
Package boilers; Natural gas infrared heating; Thermal treasure; Standby generation; Natural gas supports green efforts

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role that compressed air plays in manufacturing plants.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me