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**Abstract**
Despite the machine tool sales data released by the Japan Machine Tool Association or the European machine tool market reports, the overall environment for the machine tool industry in 2013 remained challenging. Companies were urged to proactively seek strategies to navigate the difficult market conditions. The global economic situation had a significant impact on local manufacturers, particularly in Taizhou, Zhejiang, where many machine tool companies faced transformation and adjustment. Some businesses experienced an increase in orders, while others struggled with production halts.
The machine tool sales sector was also heavily affected. In Zeguo, there are over 300 machine tool sales companies, with total sales reaching 1.5 billion yuan in 2012—a 14% decline from the previous year. After this downturn, the question remains: what is the current state of the industry? Recently, reporters visited several machine tool sales companies in Zeguo to investigate the situation firsthand.
"Compared to 2011, our company's sales dropped by nearly 50% last year," said Guo Xiaofu, General Manager of Southern Machine Tool Group. He added that this year’s sales have slightly slowed compared to the same period in 2012, but the outlook is still not optimistic.
This trend reflects the broader challenges faced by machine tool sales companies across Zeguo and even the entire country. According to officials from several sales companies stationed at Zeguo Electromechanical Hardware City, machine tool sales began to decline in August and September 2011, and the situation worsened in January and February 2013. As a result, some companies saw their sales drop by as much as 50%.
Unlike hardware sales, machine tool sales are highly seasonal. The peak season typically runs from the start of the Lunar New Year to the Dragon Boat Festival, especially during the first month of the lunar calendar and February. Sales usually slow down after the Dragon Boat Festival and remain low until after National Day. Industry insiders explain that machine tool sales are closely tied to enterprise expansion, which often occurs at the beginning or end of the year, making these periods the peak seasons for tool sales.
"Business has been decent in mid-to-late March, but now it's getting lighter," said Xiao Guo, a salesperson at a local machine tool company. He noted that business is becoming harder, with fewer customers and more price competition, leading to shrinking profit margins.
Many experts and industry insiders believe that the machine tool industry will experience a “low before high†trend in 2013. Li Jingming, Deputy Secretary-General of the China Machine Tool Industry Association, predicted that after a period of inventory digestion, the industry would gradually recover. He pointed out that the early 2012 industry indicators were relatively high, and since September 2012, the market had been climbing monthly. Seasonal factors also played a major role in the initial downturn.
However, he also noted that the macroeconomic fundamentals were improving. It is expected that after the low phase, the machine tool industry will slowly rebound.
According to the China Federation of Logistics and Purchasing and the National Bureau of Statistics Service Industry Research Center, the China Manufacturing PMI reached 50.9% in March, up 0.8 percentage points from the previous month. This marked the sixth consecutive month that the index remained above 50%, indicating a steady improvement in economic activity.
Overall, the market is showing signs of recovery, with increased corporate orders and improved business operations. The economic trend appears to be steadily rising, offering hope for the future of the machine tool industry.