Article Description : This article titled ‘Market overview -Machine Tool suppliers in Japan’ covers important facts that a professional must know before considering about supplier sourcing in Japan.
Purpose of the study
This article focuses on the Machine Tools sector of Japan, its market scenario and various coverage to help Metalworking professionals around the Globe benefit in terms of procurement.
In the recent years, the Machine tools industry has exhibited a fast growth due to an increased momentum in overall demand. The growth of the Manufacturing sector has largely expanded the need for machine tools on a large scale. Both the domestic and the international market showcase a similar inflation in the requirements.
Though the number of orders received by Japan do not completely contribute to the growth rate, the decline of the numbers does not majorly affect the progress either. This is due to the quality production capacity of Japan in terms of any trade.
The more a country focuses on the quality, the faster will it outsmart other competitors in sales. This case is evident in the Japanese market that has its key focus on the quality of the products. These products more likely sell themselves amidst widespread poor-quality products in the Global market.
A major factor that is a primary and pivotal influencer of an industry is the economic growth of a country. In this aspect, Japan’s renaissance conduces largely to maintain balance in the sector even at times of industrial agitations. The sector amidst its growth, contributes largely to the advancement in several sectors like Automobile and Aerospace.
As a major league in technological advancements, Japan has spanned out its automation services to the Machine Tools industry. It has developed Industrial Internet of Things (IIOT), Robotics, Big Data, etc.
The growth in the global market demands for an uptrend of the Japanese market. Therefore, the effect of Foreign investment dips is earmarking a decline of the sector’s growth rate.
Likewise, the trade with China has largely descended in the past few months. Yet, the balance is maintained due to an increased trade activity with Asian countries like India, Vietnam and Taiwan. This is due to the recent market trend highly influenced by the trade friction between China and the US.
Japan’s trade with China has a major impact on the overall economy of the industry. But the economic slowdown in China as a result of the trade friction has affected the manufacturing sector, directly influencing the Machine tools industry.
However, the fair expansion in the economy is expected to improve the market situations with the support of government policies that are established with complete awareness about the market trend.
Currently, there exists a qualm among the Chinese traders to invest on Machine tools in Japan due to the trade friction with US and its economic impacts. This shortcoming is developing as the months move forwards. This is considered as a major threat to the industry as a slow weak down is observed to be prevalent for o Target Market.
China, Brunei, Cambodia, Indonesia, USA, Laos, Malaysia, Myanmar (Burma), India, Singapore, South Korea, Thailand, Philippines, Vietnam and Germany.
Infrastructure, Automotive, Capital goods sector, Aerospace, etc.
Efforts for Progress
While the industrial giants in the global market focus on achieving the constituent smart approaches of Industry 4.0, Japan’s focus is on the future furthermore. The country aims at achieving ‘Society 5.0’
The framework of the concept is called ‘Connected Industry’ . It aims to develop the industrial technologies like IIOT, Big Data and AI in association with the different facets of day to day activities of the society. Though, this concept is perceived to be a complicated one, the success of this automation adoption in all layers of life would transcend the present lifestyle to an all new level.
Although almost all manufacturing and fabrication industries rely on the Machine tools sector, there is an elevated demand in the following areas :
Although the challenges in the sector is not severe, the trade friction between China and the US have an influencing impact on the Japanese market. In addition to this, there exists a peril caused by Brexit in terms of industrial activities.
Predictive insights & outlook
Although the current situation marks a decline in the growth trend, an increase in growth is foreseen due to increased orders demanded by the Asian, European and North American markets. Relatively. an optimal supply chain management is foreseen. In addition to this, the nature of Japan’s fast technological advancements enriches the opportunities of growth on a widened horizon along with speedy pace of automation.
With Japan being an active competitor, supplier sourcing for machine tools is considered as a definite smart choice. Several reasons including
other factors boost the chances of Japan becoming an ideal source of suppliers for metalworking operations.
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