The Machine Tools and Accessories industry is going through a transit amidst its rapid growth. Increased demand for better, long lasting tools and accessories is emerging from all across the globe. The industrial manufacturing sectors are going for extensive development of tougher cutting tool materials along with improved machine tool design to deliver better performance in a cost effective manner.With each passing day, adherence to quality parameters is also acquiring more and more importance.
Machine Tools and Accessories industry supports a wide range of other industries from automotive, defence to railways, aerospace etc. and forms the backbone of every country's industrial sector.
The Indian Machine Tools and Accessories industry scenario
The Indian Machine Tools and Accessories industry scenario can be divided into four main phases
A rough estimate says that the the Indian Machine Tools Accessories industry is worth 20 billion INR, supports industries worth 2000 billion INR and employs close to 70,000 skilled and unskilled labour.
The Other Asian tigers
Singapore's manufacturing output increased 26.1% in June 2010 on a Y-o-Y basis. Out of which, the machinery & systems segment grew 42.8%. China's machine tool accessories industry is also showing steady development trends, with increased market share.
Since machine tools companies sell products to companies in other end markets, the success of machine tools companies depends upon the success of these end markets.
Those who made tools for the automotive industry (during the economic downturn) are facing losses whereas those are making niche products for military or clean energy industry and posting record profits.
The ' S ' factor
Steel one of the major component required for machine tools industry is eating into the margins of its manufacturers. The rising cost of steel has been nagging the industry for quite some time, forcing most of the machine tools accessories suppliers to install more efficient manufacturing operations or to pass on the burden to the end buyer.
Is Outsourcing the way Out?
Cost cutting is the battle cry in the midst of intense competition worldwide. Companies are looking for more and more innovative ways to cut the operational cost and not just the overheads. New destinations are being searched upon to set up low cost manufacturing units specially in India and china to further cut down the cost and improve the overall profit margin. Only time will tell if the machine tools accessories suppliers will benefit from this or not?