Delivery times for imported machine tools are increasing. Where are the opportunities for domestic high-end machine tools? 

Recently, the purchasing manager of a new energy auto parts company in the Yangtze River Delta shared his thoughts on WeChat Moments. Due to fluctuations in the global supply chain, geopolitical factors and limited overseas production capacity, delivery times for imported high-end machine tools have generally increased to 6-12 months from 2024, with some scarce models even out of stock.

This change has created unprecedented market opportunities for domestic high-end machine tools, long suppressed by imports. What exactly is this opportunity and how can domestic manufacturers take advantage of it?

Opportunity 1: Technological breakthroughs + localized services to break the "can't use" mentality

The main components are made in China: Kede CNC direct drive rotary tables, Huazhong CNC HNC-848D CNC systems and Hengli Hydraulics high-pressure lead screws have achieved international advanced performance indicators, and some indicators (such as heat resistance) even surpass imported products.

Fast service: repair of imported machines requires waiting for foreign specialists within 1-2 weeks. Domestic manufacturers promise “24-hour on-site response and problem resolution within 48 hours.” A representative of a company producing new energy vehicles said: "When problems arise with equipment, the services provided by domestic manufacturers save lives more than the services of imported brands."

Opportunity 2: Demonstration effect from top customers, opening niches in the premium market

A breakthrough in the field of domestic high-end machine tools often begins with attracting leading customers. In 2024, several typical examples gave positive signals:
Aerospace industry: In the COMAC C919 large aircraft project, domestically produced five-axis machines were used for the first time for large-scale processing of titanium alloy parts, which made it possible to achieve a stable yield of 99.2%, approaching the level of imported equipment.
“Confirmation from leading customers is the most powerful advertisement,” said the marketing director of one of the domestic machine tool companies. These examples convinced small and medium-sized manufacturing companies that high-end domestic machines are not a “spare tire”, but a choice that can take on responsibility.

Opportunity 3: Policy + Capital to Accelerate Industrial Modernization

The 14th Five-Year Plan for the Development of Intelligent Manufacturing sets a clear goal of achieving “domestic production level of more than 40% for high-end machine tools.” Supportive measures in various regions (such as subsidies for primary equipment and tax incentives) contribute to the development of domestic production of high-end machine tools. Meanwhile, capital market interest in domestically produced machine tools has increased sharply. In the first half of 2024, funding for listed companies in the machine tool sector increased by 120% year-on-year, with a particular focus on bottlenecks such as five-axis machine tools and CNC systems.

"Policy support coupled with capital investment will allow domestic manufacturers to increase investment in R&D," said Wang Ruixiang, vice president of the China Machinery Industry Federation. He noted that by 2024, the share of R&D investment in domestic high-tech machine tools overall will increase to 8-10% (compared to the industry average of 5%), further accelerating the pace of technology iteration.

Opportunity is a “window period” as well as a “protracted war.”

Extended delivery times for imported machines have given domestic high-quality machines the opportunity to gain a foothold in the market, but this is far from the limit. Whether they can really gain a foothold in the market depends on three key factors: constant technological progress, expanding the service network and increasing brand trust.
As one of the domestic entrepreneurs in the field of machine tool industry noted: “The “supply crisis” of imported machine tools is a challenge, but it also provides an excellent opportunity for domestic high-quality machine tools to prove themselves. By taking advantage of this opportunity, we may be able to change the competitive landscape in the global machine tool industry.”