Imported machine tools struggle in the severe cold; service is a weak point

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Behind the hype surrounding the high quality, high precision of imported machine tools, as well as the emphasis on craftsmanship, a set of statistics reveals that imported machine tools have entered a rather challenging situation in the Chinese market. Imported machine tools face obstacles, leading to a decline in performance. According to data from the China Business Industry Research Institute, from January to July 2016, China imported 43,754 metal processing machine tools, with an import value of 4.592 billion US dollars ； Compared to the same period last year, they decreased by 19.4% and 11.0% respectively. In July, 7,142 imported metal processing machines were imported, a 18% decrease on a month-on-month basis; the value of these imports was 607 million dollars, representing a 9.4% decline on a month-on-month basis. While the domestic machine tool industry strives to move toward higher precision and specialization in order to overcome the downturn, the situation for those forced to rely on imported machine tools is not as favorable as portrayed in the media. Imported machine tools see price cuts to combat the harsh climate; to compete with Chinese machine tools, they are forced to lower their prices. It is understood that the prices of some machine tools in Japan and South Korea are already quite close to those of domestically produced machine tools, while many machine tools from countries such as Germany, Italy, and Switzerland have also seen significant price changes compared to last year. The ongoing data also shows that price cuts cannot reverse the decline in the market share and sales volume of imported machine tools in China. The major drawback of imported machine tools, which rely on services and accessories, is their inadequate support services. Although these imported machine tools excel in terms of product quality, stability, and precision, they cannot overcome the fatal issue of poor after-sales service. Chongqing Gearbox Factory used a Pamah machine tool; its oil tank broke down, and it took half a year to get it repaired. The lack of timely maintenance services and spare parts has continuously led to disputes between imported machine tools and their users. Although the quality issues with Korean machine tools have not fully escalated in China, they still represent a threat hanging over imported machine tools, ready to fall and cause damage on a large scale at any moment. In the currently sluggish domestic machine tool market, in addition to striving for higher precision and specialization in order to replace imported machine tools, more machine tool manufacturers are shifting from a production-oriented model to a service-oriented one in order to survive. Once this customer-centric service-oriented marketing approach is adopted by most Chinese machine tool manufacturers, the weaknesses of imported machine tools, which come with a premium price tag, will become even more apparent. Issues such as delayed service, unavailable spare parts, and high maintenance costs will undoubtedly prove to be fatal flaws for these imported machine tools. What is the future for imported machine tools? In an era of globalization, Chinese machine tools are becoming the force that overcomes the existing systems – just as each wave of manufacturing development has gone through a process of starting from imitation and replication before moving toward innovation. The United States has managed to overtake Europe, while Japan and South Korea have surpassed the U.S. and Europe; China is turning the world’s major machine tool producers into countries that excel in terms of high quality, precision, and specialization. Can China achieve a fourth wave of success in the machine tool industry, moving from being the largest producer to the strongest? In the world’s largest market for machine tools, the opportunities are attractive; those who import machine tools can secure a larger share of this market. Lowering prices can no longer be their unbeatable advantage; it is localized services and localized production in China that can help them go further.