The Indian machine tool industry’s hope of achieving phenomenal growth between 2008 and 2010 appears to possess gone awry.
The slowdown within the industrial sector and also the ongoing recession has adversely affected the annual development of the segment. The device tool industry has observed around 20% to 30% loss of its business volumes this season.
Using the sector’s sales growth believed to become 15% under the year before, medium and small enterprises (SMEs)-developing the main of the profession-feel heat.
Machine tools market is largely from the auto sector as increasing numbers of than 45% from the production out of this sector would go to the car part industries, ancillary units and auto majors.
Thus, the interest in machine tools depends upon the orders placed by commercial vehicle manufacturers, original equipment manufacturers (OEMs) and auto component units.
Consequently, the slump within the auto industry has led to a serious blow towards the business of small-scale machine tools manufacturing units. The steep fall sought after for auto parts within the global and domestic market have triggered reduced sales growth of these small manufacturing units.
A number of them have reported around 50% fall within their revenue growth over the past three several weeks.
The way forward for the Indian machine tool industry, this was growing at typically 30% during the last 5 years, is further searching gloomy. It’s anticipated that it’ll remain flat throughout the current financial year.
Furthermore, using the global auto market showing no indications of recovery yet, the device tools sector is not likely to determine any major improvement.
To conclude, to remain afloat over these difficult times, small units should implement new strategies and expand into new areas. Diversifying into segments like aerospace, power, construction, renewable power, plastics and medical implants manufacturing is needed small industries to lower their reliance on the automotive industry.
Machine tools sector also needs to adopt new technology to assist upgrade its manufacturing process and focus on the increasing demand in high-tech areas like aerospace, defense and earth moving equipment sector.