World Machine Tools-Cutting Tools Markets

Abstract

Customer Demands Force Manufacturers to Optimize Tooling Solutions

As customer companies push for machine tools that are less expensive and take less time to form/cut/finish a work piece, tool manufacturers are also being challenged to offer products that help increase the productivity of their end users. In addition, the rapid development of machine technology - higher horsepower, higher spindle speed, and high dynamic stiffness - makes it imperative that manufacturers introduce newer cutting solutions that can withstand higher speed machining.

This Frost & Sullivan research service analyzes the global markets for machine tools: cutting tools. The study segments the market into metal cutting, metal forming, and metal finishing tools. It provides an analysis of market drivers, restraints, and forecasts, identifying areas of growth in these segments.

Globalization: Shift of Manufacturing Facilities Affects Industry

The lower labor rates in Asia and East Europe is encouraging the shift of manufacturing facilities to these areas. "Globalization has deeply affected the machine cutting tools industry with end user companies such as automobiles, job shops, and appliances shifting operations to countries in Asia," says the author. Since the machine tool industry is dependent on the state of the economy and specifically manufacturing levels, this shift will help the Chinese and East European markets expand. However, this growth will be mostly at the expense of the North American, European and Japanese markets.

Cutting tools manufacturers themselves are shifting production to these regions to lower their costs and be closer to their markets.

Consolidation Forces Small Companies to Rethink Their Competitive Strategies

"Established companies in the metal cutting and metal finishing segments are buying smaller companies, consolidating product lines and business interests, and expanding to new geographical places," says the analyst. As a result, smaller companies are focusing on market niches - specific product ranges, geographic areas, machine types, or end users - and adapting their competitive strategies to sustain their market share.

The overall metal cutting tools market is expected to improve as the economy improves and manufacturing picks up. Carbide tools are rapidly replacing steel in the metal cutting and forming industries. The metal finishing segment on the other hand is experiencing a surge in the use of super abrasives.