Chinese machinery production drives Asian growth

Nov. 11, 2005
ASIAN MACHINERY markets are in a period of significant change, according to a recent study by IMS Research. Regional production, estimated to be around $65 billion in 2003, is projected to grow to more than $110 billion in 2009. The growth of regional economies, global growth in specific machinery sectors, and continued relocation of production to China reportedly are driving this strong upward trend.“China is undoubtedly the major global growth market for machinery production,” says Don Tait, IMS’ market analyst. “More and more Japanese, European and North American machinery manufacturers’ are setting up machinery production facilities in China. They not only take advantage of the low labor costs and the rapidly developing economy, but also provide local support to their customers, who also are relocating to China. The result is that for the next few years the market for machinery production will grow faster in the Asia Pacific region than elsewhere.“In 2003, Japan dominated the Asian regional market with its 47.7% share, compared with 18.3% in China, its nearest rival, adds Tait. China is expected to narrow this gap substantially within the next five years. China already is the leading regional producer of textile machinery. It also reportedly accounted for a third of the region’s 2003 production of packaging machinery and food, beverage and tobacco processing machinery. With China’s continuing forward march, it will doubtless contest leadership of these sectors with Japan in the near future.”