China's machine tool industry slows down and the challenges in the fourth quarter are severe

The growth of China's machine tool industry has slowly declined. Wang Liming, executive vice chairman and secretary-general of the China Machine Tool Industry Association, disclosed at an internal meeting that from January to August this year, the total industrial output value and product sales value of China's machine tool industry continued to maintain a relatively high level of growth, but it began in May. The year-on-year growth in output value has unilaterally declined.

Among them, the decline in orders for low-grade products is relatively large; orders for heavy-duty and large-scale machine tools have a marked downward trend, and large-scale machine tools are particularly prominent.

“In the survey conducted by the association, many companies have already reported that they have been pressured by cash flow difficulties. Many downstream users have already postponed their delivery or required the contract to be delayed. This has also caused a backlog of funds for machine tool companies.” Wang Liming said. According to statistics, at the end of July, the inventory of finished products in the machine tool industry reached 26.42 billion yuan, a year-on-year increase of 20.7%, and the use of funds increased significantly. Wang Liming pointed out that the machine tool industry will face new severe challenges in the fourth quarter.

However, Wang Liming said that in the first seven months of this year, the accumulated profit of the machine tool industry totaled 23.3 billion yuan, a year-on-year increase of 39.5%; if this level is maintained in the last five months, the total annual profit is expected to increase by 29%.