Machine Tools 2001

  1. The various kinds of tools designed especially for shaping metal are known as machine tools. Machine tools are capable of processing not only metals, but also new kinds of materials such as ceramics. The purpose of machine tools is to cheaply and accurately manufacture large quantities of complex, highly precise components. As all machinery is made by machine tools, machine tools are also known as the "machines that make machines" or "mother machines". Countries throughout the world consequently regard the machine tool industry as forming the core of their machinery industries, and seek to encourage its development.

  2. The Japan Industrial Standards (JIS) define machine tools, in the narrow sense, as tools for shaping mainly metal articles into a desired shape by cutting, grinding or removing unnecessary portions using electricity or other forms of energy, but excluding tools that are handheld during use or held in position by magnetic stands or similar devices. In Europe and North America, machine tools are interpreted more broadly to include presses and woodworking tools.

  3. Machine tools may be broadly divided into three main categories:

    a ) Lathe types: Lathes (machines for shaping & rotating work )
    b) Milling types: Milling machines, machining centers, drilling machines (machines that hold the work in position and remove portions by means of a revolving bit)
    c) Grinding types: Grinders, planning machines (whetstones used for finishing process)
    d) Other types (laser processing machines, electrical discharge grinders)

    In Japan, machine tools are made to order only, rather than being made to meet anticipated demand, and so delivery normally takes six months.

  4. Machine tools originated in ancient Egypt, and were first used in industry in Britain in the 1770s. The machine tools used in industry were invented because of the need to manufacture the steam engines and spinning machines that were the driving force of the industrial revolution. Since then, all kinds of distinctive machine tools were developed in Europe and North America to meet the needs of the periods. The first versions of the machine tools seen today were almost all made between the 18th century and late 19th century. The greatest technological innovation after the Second World War was the development of NC (numerical control) machine tools. These were developed in the United States in the early 1950s, and rapidly spread to form the mainstay of factory automation (FA)

  5. Japan's machine tool industry began to develop in the latter half of the 19th century. Between the mid-1950s and mid-1960s, Japan, which had until then been dependent on imports from Europe and North America, made a huge effort to develop overseas markets and take advantage of electronics to quickly raise its technological level, and Japanese makers consequently became major players in the global machine tool market. In the mid-1950s, over 30% of domestic demand was imported. In the mid-1970s, however, over 30% of domestic output was exported, and this figure has now risen to around 40%. Japanese machine tool manufacturers are increasingly becoming involved in tie-ups and technology transfers to firms in other countries, and in both name and reality, Japan has become a force to be reckoned with.

  6. The main source of demand for Japanese machine tools is the automobile industry, which accounts for 60~70% of output, the remainder going to the general machinery, electrical machinery and precision machinery industries. IT-related demand has also been increasing of late. As machine tools are a form of equipment and facilities, the industry is directly affected by business conditions. Very few types of machine tool indeed are for general purpose, and the vast majority are specially ordered to make single products.

  7. Output, exports and imports of Japanese machine tools over the past decade have been as follows:
    Output Exports Imports
    1990 1,303,442 455,809 68,645
    1992 831,087 330,291 41,027
    1994 554,080 328,786 25,226
    1996 837,453 591,653 64,384
    1998 1,010,541 657,055 65,843
    2000(1-11)
    739,958 560,953 72,267
    Unit: Million yen
    Source: Japan Machine Tool Builders' Association

  8. Japanese exports of machine tools over the past few years have been as follows:
    Total East Asia Southeast North Europe Other Regions Rest of Asia America
    1996
    591,653 174,070 98,907 108,461 195,423 14,792
    1998
    657,055 104,600 53,012 174,529 302,345 23,569
    2000(1-11)
    560,953
    (100%)
    164,293
    (29.3%)
    62,170
    (11.1%)
    110,945
    (19.8%)
    208,132
    (37.1%)
    15,413
    (2.7%)
    Unit: Million yen
    Source: Ministry of Finance trade statistics

  9. The main export destinations are as follows:

    East Asia:
    Taiwan, China, South Korea
    Southeast and rest of Asia:
    Singapore, Thailand
    Europe:
    Germany, U.K., former USSR
    North America:
    U.S.A., Mexico
    Other regions:
    Middle East, South America (mainly Brazil), Africa (mainly South Africa), Oceania (mainly Australia)

  10. Japanese imports of machine tools in the past few years have been as follows:
    Total South Taiwan Germany Switzerland U.S.A. Others Korea
    1996 64,384 907 1,957 6,757 6,074 37,548 11,141
    1998 65,843 1,081 2,666 7,412 6,164 33,640 14,880
    2000
    (1-11)
    72,267
    (100%)
    1,255
    (1.7%)
    1,622
    (2.2%)
    5,379
    (7.5%)
    4,390
    (6.1%)
    45,584
    (63.1%)
    14,037
    (19.4%)
    Unit: Million yen
    Source: Japanese Ministry of Finance trade statistics

    "Others" includes Thailand, China, Singapore, U.K., Italy and France.
    Imports from U.S.A., Germany and Switzerland tend to be high quality, high-priced products, while those from countries such as Taiwan and South Korea tend to be low priced.

  11. There are at the moment surprisingly few leading Japanese makers investing in their own plants or joint ventures overseas, although many are setting up sales companies overseas and marketing through them. The main reasons for this are the fact that it takes many years to develop the necessary skills, and because manufacturers cannot ignore markets such as China that will grow in the future. Recently, a number of top Japanese manufacturers have established marketing operations in China. Local after-sales service is a forte of Japanese companies, giving them a major advantage over their rivals.

  12. Machine tools are mainly sold directly to end users and via specialist trading companies. Manufacturers that export overseas are all covered by product liability insurance. Although there are apparently occasionally major incidents, these are generally resolved individually by the companies concerned.

  13. 60-70% of parts are procured from external sources. Despite the high cost of the products themselves, margins are rather thin due to the fierce international competition and level of labor costs.

  14. Machine tools must comply with JIS and ISO standards.

  15. Regarding the outlook for the future, Japanese machine tool manufacturers' considerable technological edge will continue to give them an advantage for the time being. Growth in sales to the IT industry has run its course, however, and hopes are pinned on increased sales in the future to overseas automakers and semiconductor manufacturers.

(The assistance of the Japan Machine Tool Builders' Association with this article is gratefully acknowledged.)



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