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Japanese Manufacturing Is Increasingly Dependent On China: The U.S. Demand Is Not Reliable
Jan 18, 2018

Japanese media said that China's demand is supporting the performance of Japanese companies. On April 27, Fanuc, a Japanese manufacturer of factory automation equipment and robotics, predicted that consolidated operating profit for FY17 (as of March 2018) would increase 1% YoY, while the industrial robotics business in China boosted its performance . In addition, the expansion of public investment in China is also positive for the construction machinery maker Komatsu. Although Komatsu's FY17 operating profit (US accounting standards) is expected to drop 10% YoY, profit actually jumped 12% if excluding costs incurred in the acquisition of U.S. companies. In the context of the United States increased demand uncertainty, depending on China's situation or will be strengthened.Metal Aluminum Passivation Part Bulk Production

 

According to the "Nihon Keizai Shimbun" website reported on May 5, "the Chinese market is hot", on the 28th earnings briefing, FANAKA President and CEO Inaba Masaharu so stressed. In order to mass produce the new generation of American apple's intellectual mobile phone of the apple, the electronic product foundry service enterprise has increased the investment, the cutting machine's shipment is rapidly expanding. Although the upgrading of smartphones can bring temporary demand growth, the demand for factory automation in response to structural changes such as rising wages in China is also on the rise.

 

Reported that, in particular, industrial robots are in short supply, Fanuc has decided to build a new factory in Ibaraki prefecture. By August 2018, the capacity of 6000 units will be increased to 9,000 units per month. According to the Japan Machine Tool Industry Association statistics, March machine tool orders for China amounted to 36.7 billion yen (about 2.255 billion yuan - Ben Wang Note), an increase of nearly 3 times. FANAKA president Inaba believes that "China's manufacturing recovery will continue."Metal Brass Passivation Part Bulk Production

 

"Supported by the growth of public investment after the second half of 2016," KISEI Tetsuo, director of Hitachi Construction Machinery Corporation, said of sales of construction machinery in China. Hitachi Construction Machinery in fiscal year 2016 sales in China increased 33%, reaching 71.5 billion yen (about 4.394 billion yuan - Ben Wang Note). Komatsu sales of construction machinery and vehicles for China increased by 40%.

Even after the Spring Festival, when demand peaked, sales to China remained strong. For 2017 fiscal year, Komatsu predicts sales to China will grow 3% YoY to 100 billion yen (about 6.1 billion yuan - Ben Wang Note). Hitachi Construction Machinery forecast a 4% increase to 74.1 billion yen (about 4.554 billion yuan - Ben Wang Note). "It is estimated that strong demand will last until autumn," said Kazuo Fujito, vice president of Komatsu.

 

 Reported that although China's demand is recovering, but the construction machinery market is still in a state of decline. China's hydraulic excavator demand is less than the peak when 1/3. In the machine tool industry, there are concerns about the demand in the smart phone, the market demand may fall. It is too early to be optimistic about China's prospects.Zinc Alloy Passivation Custom Cnc Machining Parts Bulk Production


  • Contact Us

    Add: 2F, Building A1, No. 276, E. Baoshi Rd., Baoan District, Shenzhen
    Tel: +86-755-27359623
    Mob: +8618516195475
    E-mail: sales@litongcnc.com


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