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Expansion of new sales, China's foundry machine tool industry will accelerate development
Abstract In recent years, China's foundry machine tool industry has been significantly impacted by the global financial crisis, leading to a noticeable decline in profitability and overall performance. The sector has experienced negative profit growth, with many companies struggling to maintain their financial stability. Sales growth across the entire industry has dropped sharply, reflecting a challenging business environment. According to recent data, 76.6% of enterprises reported negative growth in new orders, while 86.1% saw a decline in total orders. Some companies faced drops as high as 84%, signaling that a significant number of foundry firms are at risk of production halts or even bankruptcy, especially during the fourth quarter.
The difficulty in selling foundry products is one of the main causes behind this downturn. For example, in October 2012, the sales value of the foundry machine tool industry fell sharply after nine months of relatively stable performance. Specific industries such as casting cutting tools and machine tool accessories saw major declines, with year-on-year growth rates dropping by 34.86%, 26.34%, and 27.05% respectively. Looking at key product outputs, seven major products in the industry showed a general decline, with numerical control equipment for foundry machines experiencing the steepest drop—down 62.75 percentage points compared to the previous year.
Since the start of the year, sales performance in the domestic foundry machine tool industry has remained weak. Despite various efforts, there has been no significant improvement in sales figures. This ongoing issue has created serious challenges for foundry companies. To ensure sustainable development, businesses must first address these sales difficulties and find effective ways to boost market demand. Only by solving these fundamental problems can the industry hope to recover and grow in the long term.