2. Industrial Machine Sector

2. Industrial Machine Sector
2.1. Machine tools
2.1.1

Supply and demand trend(1) Outline

The amount of the production of machine tools in 2009 was ¥490.3 billion, a significant
decrease of 60.8% from the previous year (based on the Ministry of Economy, Trade and Industry,“Annual Report of Machinery Statistics 2009”). According to the Japan Machine Tool Builders’
Association, the amount of orders received, which had exceeded the result of the previous year for
five consecutive years until 2007, declined in 2009 as in 2008 and amounted to ¥411.8 billion (down
68.4% year on year). In the trend of export and import, the total amount of export was ¥321.4 billion
or a decrease of 63.3% from the previous year, and that of import was ¥28.7 billion, suffering a sharp
drop of 52.3% year on year (based on the Ministry of Finance, “Trade Statistics of Japan”).
The machine tool industry in 2009 suffered a sharp drop in orders received, production andsales affected by the declining investment intention in countries under the serious impact of the
global recession that started in the second half of 2008.
(2) Production and demandFig. 2.1.1

Orders received for machine tools by business category
Unit: ¥ million, %
2002

2003

2004

2005

2006

2007

2008

2009

Year-onyear ratio

Iron and steel/nonferrous metal

3,680

5,557

8,613

11,61912,996

12,664

12,991

4,054

Metal products

9,732

15,20922,06722,641

21,03021,582

19,218

6,555

-68.8
-65.9

General machines

120,190

160,512264,502302,287

330,108319,284

248,456

68,911-72.3

Machine manufacturers(of which dies)

32,32740,72465,64573,807

66,66756,97539,059

11,628-70.2

Electric machines

22,56430,48350,902

44,29652,33346,35533,05812,488-62.2

Automobiles

141,490

158,988

225,632

258,959

195,505

213,125

161,336

33,862-79.0

67,10076,975

101,945

110,547

89,157

92,18082,13916,974-79.3

Shipbuilding and othertransportation machines

14,287

12,074

17,32823,942

27,066

29,79630,798

11,183-63.7

Precision machines

16,45924,17632,99032,91336,81331,571

24,735

7,666

-69.0

(of which automotive parts)

Subtotal

314,990386,233

591,354662,397

641,825

640,131498,383

134,110-73.1

Other manufacturers

14,19724,50737,64333,33337,71934,79421,099

5,207

-75.3

National/local governments/schools

2,125

1,873

1,842

1,588

2,100

2,072

2,199

4,698

113.6

Other demand sectors

610

1,644

2,971

6,081

8,368

8,164

7,973

3,471

-56.5

Trading firms/agencies

4,988

6,564

8,349

9,050

8,971

7,017

4,957

1,553

-68.7

Total, domestic demand

350,322441,587

672,839746,709733,009726,424

566,820

159,648-71.8

Overseas demand

325,515

409,514563,353

616,494

703,961

863,567

734,327

252,161-65.7

Total amount of orders received

675,837

851,101 1,236,192 1,363,203 1,436,970 1,589,991 1,301,147

411,809-68.4

of which NC machine tools

638,831807,208 1,176,257 1,304,058 1,374,496 1,529,644 1,254,661

392,559-68.7

Notes: 1. Figures for dies and automotive parts, which are included in those for general machines and automobiles, respectively,
are shown in 2001 and after.
2. Due to rounding off, the total of year-on-year ratios is not 100.0 in some cases.
3. Figures with “-” are negative ones.
Source: Based on the Japan Machine Tool Builders’ Association, “Handbook of Machine Tool Statistics.”32

2. Industrial Machine Sector

The amount of orders for machine tools in 2009 fell considerably as in 2008, registering a fallof 68.4% year on year and ¥411.8 billion. This is the result of the great effects of the Lehman shockthat began to show up in the second half of 2008. Orders received declined greatly both at home andabroad: domestic demand was ¥159.6 billion or a decrease of 71.8% year on year and overseas
demand, which had contributed to an increase in orders received until 2007, was ¥252.1 billion or adrop of 65.7% (Fig. 2.1.1). The fact that overseas demand began to exceed domestic demand in late2006 is one of the characteristics of orders received for machine tools in Japan, and in 2009, too,overseas demand accounted for 61.2% of the total orders received (Fig. 2.1.2).

Fig. 2.1.2

Trend of the amount of orders received for machine tools
Total, domestic demand
Total,
demandTotal, overseas
overseas demand
Total,
demandTotalof orders
ordersreceived
received
Total amount of

Amount of orders received(¥ million)

1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
2001
Source:

2002

2003

2004

2005

2006

2007

2008

2009

Year

Same as that for Fig. 2.1.1.

By business category, the orders received for domestic demand decreased in all the businesscategories: general machines (¥68.9 billion, down 72.3% year on year), electric machines (¥12.5
billion, down 62.2%), automobiles (¥33.9 billion, down 79.0%) and precision machines (¥7.7 billion,
down 69.0%) (Fig. 2.1.3). The decrease in orders from the automobile industry was especiallymarked, down about 80%, and the great impact of the automobile industry on the machine toolindustry in Japan can be seen from this figure. Although not shown in the figure, only orders
received from national and local governments and schools increased over those in the previous year,
recording a growth of 13.6% (¥4.7 billion).

33

2. Industrial Machine Sector

Fig. 2.1.3

Orders received for machine tools of the manufacturing industry
by business category

Amount of orders received(¥ million)
350,000
General machine

300,000
250,000
Automobile

200,000
Iron andand steel/nonferrous
steel/nonferrousmetal
metal
Metal productproduct
Electric machinemachineShipbuilding
andotherothertransportationtransportation
machineShipbuilding andmachinePrecision machine
PrecisionmachineOther manufacturing
manufacturingindustries
industries

150,000
100,000
50,0000
2003
Source:

2004

2005

2006

2007

2008

Year

2009

Same as that for Fig. 2.1.1.

The amount of production of machine tools in 2009 dropped as in 2008, in the same way as thetrend of orders received mentioned above: ¥490.3 billion or a decrease of 60.8% from the previous
year (based on the Ministry of Economy, Trade and Industry, “Annual Report of Machinery Statistics
2009”; Fig. 2.1.4).

Fig. 2.1.4

Amount of production of machine tools

Amount of production(¥ million)

Year-on-year ratio (%)

1,400,000

40.0

1,303,164
1,110,257

1,200,000

30.0

1,211,230
1,249,184

878,08220.0
10.0

1,000,000
690,205(26.4)(9.1)

800,000

0.0

（7.6）

-10.0

(27.2)-20.0(－4.1)

600,000

490,275(18.0)
400,000

-30.0
-40.0
-50.0

200,000-60.0(－60.8)0
2003
Source:

2004

2005

2006

2007

2008

-70.0
2009 Year

Based on the Ministry of Economy, Trade and Industry, “Annual Report of Machinery Statistics.”

34

2. Industrial Machine Sector

The production of machine tools in 2009 experienced a year-on-year decrease for all the
product types: lathes (¥102.8 billion, down 66.6% year on year), grinding machines (¥60.1 billion,
down 56.2%), gear cutting machines and gear finishing machines (¥12.0 billion, down 60.1%),
special-purpose machines (¥64.7 billion, down 50.1%), machining centers (¥157.6 billion, down
57.5%) and other metal machine tools, including numerically controlled (hereinafter “NC”) drillingmachines, NC boring machines and NC electric discharge machines (¥93.0 billion, down 66.0%).
The production of machining centers, that had the largest output, showed an especially big fall for
vertical machining centers with ¥61.7 billion (down 66.7%), and large type ones with a back andforth stroke of 500mm or more suffered a substantial decrease of 67.6% (¥47.6 billion). The numberof large type vertical machining centers went down from month to month: 546 in the January-March
period of 2009; 229 in the April-June period; 215 in the July-September period; and 211 in the
October-December period. The impact of the Lehman shock can be observed here, too.
(3) Export and import

The amount of the export of machine tools in 2009 was ¥321.4 billion or a fall of 63.3% fromthe previous year, while that of import was ¥28.7 billion, a substantial decline of 52.3% year on year
(Fig. 2.1.5).

Fig. 2.1.5

Amount of export and import of machine tools
ExportYear-on-year ratio,
Year-on-year
ratio,export
exportImportImportYear-on-year ratio,
Year-on-year
ratio,importimportYear-on-year ratio (%)

Amount (¥ million)

1,000,000

80.00
60.00

800,000
40.00
20.00

600,000

0.00
400,000-20.00-40.00200,000-60.000
2003

Source:

2004

2005

2006

2007

2008

2009

-80.00Year

Based on the Ministry of Finance, “Trade Statistics of Japan.”By the destination of Japan’s exports, China is the largest importer accounting for 28.0%,
followed by the U.S. with 16.3% and South Korea with 9.9%. The export to China was ¥90.0 billion
or a decline of 44.4% over the previous year, that to the U.S., ¥52.3 billion (down 74.6% year onyear) and that to South Korea, ¥31.9 billion (down 38.1%). The U.S. had been the country with thehighest overseas demand for Japan, but China got ahead of the U.S. in 2009, and the export to China

35

2. Industrial Machine Sector

amounted to one-fourth of the total export from Japan. In 2008, the U.S. ranked first, followed by
China and Germany. Considering that the export to Germany in 2009 fell by 83.2% year on year,with ¥9.6 billion, it can be pointed out that the downturn in export in 2009 was seen mostly in export
to advanced nations in the manufacturing industry.
The export of machining centers was the largest with ¥116.6 billion (36.3% of the total exportof machine tools; down 60.9% year on year), accompanied by lathes with ¥75.7 billion (23.6%;
down 69.7%). The figure for vertical machining centers was the highest, amounting to ¥59.0 billion
and 50.6% of the total machining center export, but fell by as much as 68.8% from the previous year.
The import of machine tools into Japan from Germany in 2009 was the largest as in 2008,
amounting to ¥8.5 billion and accounting for 29.7% of the total, but decreased by 36.0% from theprevious year. Lathes were the largest imports with ¥5.8 billion (20.2% of the total; down 51.7%).
Both the export and import of machine tools by country were on the decrease, too, and import ofAsian products from Taiwan, China, Thailand and Singapore fell by 60% to 70%. Of these Asian
nations, South Korea had a relatively small drop of 18.6% year on year and the amount of Japan’s
import from South Korea was ¥2.7 billion or 9.4% of the total. Thus the trend of machine tool
import from South Korea in the future will be noteworthy.

2.1.2

Results of operations and the trend of the machine tool industry(1) Trend of management and overseas business activities

Fig. 2.1.6

Share of machining center and NC lathe manufacturers
in the domestic production

Machining centers

NC lathes
Yamazaki
Mazak
23.4%

Others
24.9%
Shin Nippon
Koki
7.3%

MurataMachinery
5.8%
Okuma
15.5%
Mori Seiki
19.8%

O-M
6.9%

Makino Milling
Machine8.7%

Note:
Source:Others
24.7%

Okuma
16.9%

Yamazaki
Mazak
25.7%
Mori Seiki
20.0%

The share figures are those estimated by Nihon Keizai Shimbun, Inc.
Based on the “Nikkei Sangyo Shimbun,” August 19, 2010.

Figure 2.1.6 shows the share of machining center and NC lathe manufacturers in the domestic
production.
The domestic output of machining centers in 2009 amounted to ¥157.2 billion, a marked
decrease of 57.6% from the previous year due to the enormous impact of the Lehman shock in the36

2. Industrial Machine Sector

fall of 2008. In particular, it can be considered that this was the reflection of the fact that automobile
manufacturers, whose demand for machining centers is large, refrained from their domestic capital
investment one after another. Of the top five manufacturers in terms of domestic production
estimated by Nihon Keizai Shimbun, Inc., OKK, which had ranked fifth until 2008, was replaced by
Shin Nippon Koki in 2009. The domestic production of NC lathes was ¥99.3 billion, and the top
three manufacturers all cut their production greatly.
The trend of management of the main listed machine tool manufacturers was as summarized
below (Fig. 2.1.7):
The consolidated sales of Mori Seiki, which gained second both in machining centers and in
NC lathes, were ¥66.4 billion in 2009 or a fall of 57.8% from the previous year, while its operating
loss was ¥32.9 billion, a sharp decline year on year (for the year ended in March 2010; consolidated).
Because Mori Seiki has many customers in the transportation machine industry, such as the
manufacturers of automobiles and two-wheeled vehicles, too, it experienced a considerable effect ofthe decline of the industry.
Okuma, which ranked third both in machining centers and in NC lathes, was deeply affected by
the worldwide fall in demand just as in 2008: the company’s consolidated sales in 2009 were ¥60.4
billion (down 64.0% year on year) and its operating loss, ¥15.0 billion. It can be said that Okuma,
which is strong in large-sized machining centers for heavy industries, was strongly affected by the
restrained capital investment by the automobile industry, etc. just as in the case of Mori Seiki
mentioned above.
Okuma’s sales of machining centers, which account for 50% of the total sales, were ¥30.7
billion (down 62.8% year on year) and those of NC lathes, ¥14.4 billion (down 65.7%). The
company’s sales of compound processing machines and NC grinding machines had also negative
growth (for the year ended in March 2010; consolidated). Okuma’s sales in Japan, which amount to alittle over 70% of the company’s total sales, also suffered a decline of 69.8% from the previous yearto ¥46.1 billion. Okuma’s overseas sales registered a negative growth of a little over 50% in its mainmarkets, too: down 56.3% year on year in Asia, down 68.7% in Europe and down 60.6% in theAmericas.

Fig. 2.1.7

Sales of main machine tool manufacturers by region (consolidated)
Unit: ¥ million

Okuma
Mori Seiki
Note:
Source:Eliminated orConsolidated Consolidated
Americas intercompany
2008
2009
sales

Japan

Asia

Europe2008/2009

46,054

11,792

28,21132,871

58,166167,369

60,336-64.0%

50,595

2,652

20,954

17,95725,757

157,203

66,402-57.8%

The classification method of regions differs from company to company but the regions were roughly divided into four
here: Japan, Asia, Europe and the Americas.
Based on the brief statements of accounts of the machine tool manufacturers.

On the other hand, machine tool manufacturers employ positive strategies for overseas business37

2. Industrial Machine Sector

activities. In August 2009, Okuma built a base of the largest scale in the industry having an
exhibition hall and a new service plant in Shanghai, China, and also established a sales base in
Wuhan in December of the same year. By these and other projects, the company made it clear to takea positive policy for reinforcing its sales promotion system in China, which has achieved aremarkable economic growth. Okuma has taken steps to put emphasis on overseas markets one after
another by, for example, founding sales bases in Pune and Chennai, India, where the automobile
industry has been gathering strength, and establishing a local subsidy in Moscow, Russia.1
Mori Seiki has strengthened its cooperation system with Gildemeister AG in Germany, withwhich it had signed a business and capital cooperation agreement in March 2009. In July 2009 andafter, Mori Seiki integrated its base with that of the German partner in Thailand, Indonesia, Taiwan,
Turkey, Japan, South Korea and Australia and started to offer joint marketing and service. It is said
that the company will attempt similar projects in other countries and regions in 2010 and after, too.
In manufacturing activities, too, the company started to supply spindles, ball screws and tool rests,
the main parts for machine tools, and has carried out activities for expanding joint procurement andjoint development of new types of products after standardizing parts, too, in an effort to save the costgreatly. In addition, Mori Seiki is working to increase cooperation and manufacturing activities withother companies than Gildemeister AG, and in March 2010, acquired all of the shares of MagnescaleCo., making this its consolidated subsidiary. According to the company, this acquisition allowed
them to self-manufacture measuring instruments capable of correcting precision by measuring theposition of the cutting tools and objects to be cut and the precision and price competitiveness of
products of the Mori Seiki Group are expected to be improved further.2
The activities of the two companies mentioned above can be seen as their efforts to positively
take advantage of overseas demand so as to complement the Japanese market likely to shrink in theyears ahead. It is often said that machine tool manufacturers in Japan are slow to enter the overseas
market, and in the coming years, they should build up their manufacture and service system near themarket and customers just as in the case of consumption goods, represented by automobiles. Howa
Machinery announced that they would cooperate with several machine tool manufacturers in China
and start the joint order receiving of the special-purpose machines combining machine tools andperipheral devices by the end of 2011. In this project, Howa Machinery will provide technicalguidance to the Chinese machine manufacturers whose technical ability to build manufacturing lines
is inadequate and behind it is the company’s strategy for increasing its sales of special-purpose
machines in China by over ten times in the 2011-2013 period. The company will work to open up the
Chinese market as quickly as possible by combining their high-precision products with
Chinese-made inexpensive machining centers, lathes and others, and this project is one of the cases
where Japanese manufacturers try to enter the Chinese market, which will certainly expand in the
future, in the form of a tie-up with Chinese businesses.

1

See Okuma Corporation, “Brief Statements of Accounts for the Year Ended in March 2010.”

2

See Mori Seiki Co., “Brief Statements of Accounts for the Year Ended in March 2010.”

38

2. Industrial Machine Sector(2) Technological innovation and the business environment

The movements as those of Howa Machinery stated above are expected to increase in othercompanies, too. The target market is not only China but also the U.S. that the machine tool industry
has seen as a leading market in the world. The key word is how Japanese manufacturers can offer“marketable” machine tools in the U.S. that has focused on the aircraft and space industry and the
medical equipment industry, which are attracting attention as the fields expected to substitute for the
automobile industry.
The businesses that Japanese machine tool manufacturers should regard as the benchmarks
when they work to find new markets abroad are not limited to Japanese and European manufacturers
strong in high-class products but also include companies in South Korea and China, which havebegun to make their presence felt strongly after the Lehman shock. For example, Infracore in South
Korea has attained a favorable reputation by their low-price policy. This company is characterized by
the provision of both small and large machine tools for prices “lower by 30% than those in Japan.”
The Shenyang Machine Tool Group, one of the largest manufacturers in China, has also entered the
U.S. market at prices “lower by ten times than Japanese prices for some products,” and the American
manufacturers competing with the Chinese company use machine tools “cheaper by 30%” thanJapanese ones as their selling point.3
The price reduction of machine tools as described above is likely to increase in the years ahead,
and it is considered that the machine tool industry in Japan will find it more difficult to compete onlywith the “selling point” of high-precision and high-quality products. After the Lehman shock, someJapanese manufacturers began to appeal to the customer with machine tools less expensive by
10-30% than traditional products, and there will be the need for technical requirements forcompeting with overseas products priced lower by a maximum of ten times than Japanese ones.
(3) Future prospects and problems

In 2009, there remained strong inactive sentiment in the market after the Lehman shock in thefall of 2008, and then environment of order inflows was very unfavorable both at home and abroad.
Because this sentiment will continue in 2010, too, mainly in industrial countries, the pace ofrecovery is expected to be slow, but demand for machine tools will recover earlier in China, India
and other newly industrializing countries. Although unlike in industrial countries, it is not easy toforecast the amount of orders received in these markets, it will be evident that the market hit thebottom in 2009 and recovery will come sooner or later.
As already noted, the industries likely to support the revival of demand will be the aircraft andmedical equipment industries that will substitute for the automobile industry, the traditional user. It
can be confirmed in Japan, too, that new products have been introduced in succession aiming at suchgrowth areas as aircraft, medical appliances and electric vehicles (hereinafter “EVs”) (Fig. 2.1.8).
While activities for these industries will become more active in the years to come, how to cope with
the new problem, i.e., price competition with manufacturers in newly developing countries as
3

See the “Nikkan Kogyo Shimbun,” September 28, 2010.

39

2. Industrial Machine Sector

described above will become important, too. The two future problems before the machine toolindustry in Japan are the measures to respond to changing customer markets and the provision of lessexpensive products. The product, customer attraction and sales strategies for solving these twochallenges will be important for this industry in the coming year.

Fig. 2.1.8 Activities of Japanese machine tool manufacturers for opening up new markets
New market

Main manufacturers

Aircraft industry

Iwashita Industrial, Matsuura Kikai Seisakusho, Sugino Machine,
Nakamura-Tome Precision Industry, Komatsu NTC, JTEKT Corp., etc.

Medical equipment industry

Komatsu NTC, etc.

Next-generation automobile industry

Takeda Machinery, etc.

Source:Prepared by the authors.

2.2. Plastics processing machines and forming machines
2.2.1

Supply and demand trend(1) Outline

The amount of production of plastics processing machines in 2009 was ¥95.11 billion, a sharp
decrease of 52.5% from 2008. That of forming machines also declined by 47.7% year on year to¥110.75 billion. This means that the production of plastics processing machines and forming
machines was both halved as compared with that in 2008. In addition, the export and import andtrade balance of these machines showed a rapid fall of 40% to 50% from 2008. Thus it can be said
that the plastics processing machine and forming machine industries in Japan were attacked bysevere depression in 2009.
(2) Production

The amount of production of all types of plastics processing machines in 2009 was ¥95.11
billion or a fall of 52.5% year on year (Fig. 2.2.1). In addition, the output went down for all type ofplastics processing machines, such as injection molding machines, extruding machines, extruding
molding accessories and blow molding machines. The production of forming machines suffered adecline of 47.7% from 2008 to ¥110.75 billion, too. All types of forming machines experienced
smaller production, including bending machines, hydraulic presses, mechanical presses, shearing
machines and wire forming machines.

40

2. Industrial Machine Sector

Fig. 2.2.1

Trend of the amount of production of plastics processing machines andforming machines(Calendar year; unit: ¥100 million; fractions less than ¥10 million rounded off)

Plastics processing machines
Injection molding machines (excluding manual ones)
Extruding machines
Extruding molding accessories
Blow molding machines
Forming machines: secondary metal working machines

2005

2006

2007

2008

2009

Growth rate in2008-2009

Ratio

2,389.4

2,524.5

2,382.2

2,000.6

951.1-52.5%

100%

1,931.4

2,048.5

1,766.2

1,492.8

644.9-56.8%

67.8%

208.4

211.5

321.7

236.9

139.4

-41.2%

14.7%

124

128.5

144.4

127.6

60.5

-52.6%

6.4%

125.9

136.1

149.9

143.4

106.3

-25.9%

11.2%
100%

1,783.2

1,961.1

2,102.2

2,116.2

1,107.5-47.7%

Bending machines

112.5

92.5

130.8

120.6

55.4

-54.1%

5.0%

Hydraulic presses

217.3

219.2

258.8

266.7

147.4

-44.7%

13.3%

Mechanical presses

1,204.7

1,390.7

1,450.7

1,398.1

729.5-47.8%

65.9%

Shearing machines

55.3

58.5

58.0

64.1

47.1

-26.5%

4.3%

Forging machines

97.1

86.6

101.0

132.3

70.4

-46.8%

6.4%

Wire forming machines

96.2

113.6

103.0

134.3

57.7

-57.0%

5.2%

Source:Based on the Ministry of Economy, Trade and Industry, “Annual Report of Machinery Statistics.”(3) Export and import

The trend of the export and import of plastics processing machines in 2009 is shown in Figure
2.2.2 below. First, the export of all types of plastics processing machines went down by 41.3% from2008 to ¥151.14 billion. This is the bottom figure in recent years. The import in 2009 amounted to¥27.54 billion or a decrease of 52.4% from 2008. The trade balance in 2009 was 123.60 billion, andit must be said that this is the lowest figure recently just as the amount of export.
The trend of the export and import of forming machines in 2009 is shown in Figure 2.2.3.

41

2. Industrial Machine Sector

Fig. 2.2.2

Trend of export and import of plastics processing machines
by the type of machine
2005

2006

2007

2008

2009

Growth rate in2008-2009

Plastics processing machines, total
Export2591.92695.22670.22574.61511.4-41.3%

Import

443.3

560.6

622.9

578.7

275.4

-52.4%

2,148.6

2,134.6

2,047.4

1,996.0

1,236.0-38.1%

0.708

0.656

0.622

0.633

0.692

-

Export1399.51458.21426.11207.9596.9-50.6%

Import

62.9

80.2

106.0

81.7

27.8

-66.0%

1,336.6

1,377.9

1,320.2

1,126.2

569.1-49.5%

0.914

0.896

0.862

0.873

0.911

-

Export

181.0

224.4

266.9

238.9

158.1

-33.8％

Import

30.6

44.6

58.4

50.7

24.7

-51.4%

Trade balance

150.3

179.8

208.4

188.1

133.5

-29.0%

Coefficient of specialization

0.711

0.668

0.641

0.650

0.730

-

Export

305.2

332.8

342.2

402.8

237.0

-41.2%

Import

227.7

263.4

303.8

288.6

121.4

-57.9%

Trade balance

77.6

69.4

38.5

114.2

115.5

1.2%

Coefficient of specialization

0.146

0.116

0.060

0.165

0.322

-

Export

706.1

679.9

635.0

725.1

519.4

-28.4%

Import

122.1

172.4

154.7

157.6

101.5

-35.6%

Trade balance

584.1

507.5

480.3

567.5

417.9

-26.4%

Coefficient of specialization

0.705

0.595

0.608

0.643

0.673

-

Trade balance
Coefficient of specialization
Injection molding machines

Trade balance
Coefficient of specialization
Extruding molding machines

Parts

Others

Source:Based on the Ministry of Finance, “Trade Statistics of Japan.”

The amount of the export of all types of forming machines in 2009 was ¥85.24 billion or a fallof 45.9% from 2008. This figure is the lowest one in recent years. The import of forming machines
in 2009 declined by 20.6% year on year to ¥13.35 billion and the trade balance was ¥71.89 billion;
these are the bottom figures recently, too.

2.2.2

Results of operations and the trend of the plastics processing machine andforming machine industries(1) Trend of management

Figure 2.2.5 shows the results of operations of the six main manufacturers of plastics
processing machines and forming machines in 2009. Affected by the recession of the Japanese
economy, all of these companies suffered a considerable decline both in sales and operating income
as compared with 2008. In particular, Nissei Plastic Industrial, Sumitomo Heavy Industries, Toshiba
Machine, Amada and Aida Engineering had an operating loss. The operating income of Japan SteelWorks decreased greatly by 42.9% from 2008. The plastics processing machine and forming
machine industries are the suppliers of equipment and thus it can be said that these industries weredeeply affected by the lowered business sentiments of user businesses.

42

2. Industrial Machine Sector

Fig. 2.2.3

Trend of export and import of forming machines by the type of machine
2005

2006

2007

2008

Growth rate in2008-20092009

Forming machines
Export1456.81507.81567.51576.2852.4-45.9%

Import

149.8

184.9

187.2

168.1

133.5

-20.6%

Trade balance

1307.01322.91380.21408.1718.9-48.9%

0.81

0.78

0.79

0.81

0.73

-

Export

254.8

261.5

219.6

225.4

140.6

-37.6%

Import

34.9

38.5

33.1

48.1

51.0

6.1%

Trade balance

219.8

223.0

186.5

177.3

89.6

-49.5%

Coefficient of specialization

0.76

0.74

0.74

0.65

0.47

-

Export

142.4

121.1

147.2

177.9

107.0

-39.8%

Import

25.7

28.4

32.9

26.8

26.0

-3.2%

Trade balance

116.7

92.7

114.3

151.0

81.0

-46.4%

Coefficient of specialization

0.69

0.62

0.63

0.74

0.61

-

Export

61.6

53.0

35.1

45.5

35.3

-22.5%

Import

13.1

13.9

10.0

3.8

6.2

63.5%

Trade balance

48.5

39.1

25.1

41.7

29.1

-30.2%

Coefficient of specialization

0.65

0.58

0.56

0.85

0.70

-

Export

189.2

226.0

287.2

244.5

120.7

-50.7%

Import

16.2

22.0

24.2

16.3

13.3

-18.6%

Trade balance

172.9

204.0

263.0

228.2

107.4

-52.9%

Coefficient of specialization

0.84

0.82

0.84

0.87

0.80

-

Export

201.4

196.6

196.7

206.5

98.3

-52.4%

Import

14.0

23.9

17.9

20.0

10.3

-48.8%

Trade balance

187.4

172.7

178.7

186.5

88.0

-52.8%

Coefficient of specialization

0.87

0.78

0.83

0.82

0.81

-

Export

413.5

455.0

505.4

525.8

261.2

-50.3%

Import

17.1

14.9

20.8

17.8

5.6

-68.6%

Trade balance

396.4

440.0

484.6

508.0

255.6

-49.7%

Coefficient of specialization

0.92

0.94

0.92

0.93

0.96

-

Export

193.9

194.6

176.4

150.7

89.3

-40.7%

Import

28.7

43.3

48.3

35.3

21.2

-40.0%

Trade balance

165.2

151.4

128.1

115.4

68.1

-41.0%

Coefficient of specialization

0.74

0.64

0.57

0.62

0.62

-

Coefficient of specialization
Forging machines, etc.

Bending machines, etc.

Shearing machines

Punching machines, etc.

Hydraulic presses

Other mechanical presses

Other processing machines

Source:Same as that for Fig. 2.2.2.

43

2. Industrial Machine Sector

Fig. 2.2.4

Consolidated settlement of accounts of main manufacturers(latest settlement of accounts published)(Consolidated; unit: ¥100 million; fractions less than ¥100 million rounded off)
FY2008FY2009Operatingprofit

Sales

Sales

Growth rate in 2008-2009

OperatingprofitSales

Operatingprofit

Plastics processing machines
Nissei Plastic Industrial
-

270

-22

165

-24

-39.1%In the red

Sumitomo Heavy Industries
Standard and mass manufacture machines

2,311

123

1,766

-17

-23.6%

Fell into theredJapan Steel Works
Machine product-related business

1,178

114

994

65

-15.6%-42.9%

644

42

308

-43

-52.2%

Fell into the
red

2,242

180

1,344

-103

-40.0%

Fell into the
red

607

6

349

-55

-42.5%

Fell into theredToshiba Machine
Molding machine
Forming machines
Amada
Metal working machines and metal machine tools
Aida Engineering-

Note: 1.
2.
Source:The description below the company name is the name of the business segment. Sales include those between the
different segments of the company.
Nissei Plastic Industrial and Aida Engineering have no business segment.
Based on the financial statements of the companies.

(2) Technological innovation and the business environment

The trend of research and development activities of main manufacturers in 2009 is briefly
summarized below: Nissei Plastic Industrial developed an “electric high-speed vertical molding
machine for LEDs.” Sumitomo Heavy Industries continues R&D on a “further reduction in the
power consumption of plastics processing machines.” Japan Steel Works is doing the technicaldevelopment concerning “increase in the performance and cost reduction of magnesium injection
molding machines.” Toshiba Machine is doing R&D on a new molding system for electric injection
molding machines, hybrid molding machines and extruding molding machines, focusing on energy
and environment problems. Finally, Aida Engineering is working to develop the presses that would
meet the “needs to mold high-strength, light-weight parts for the automobile industry.”(3) Future prospects and problems

The situation of the plastics processing machine and forming machine industries in Japan in2009 has been outlined above. These two are the suppliers of equipment, and the manufacturers ofthese machines are in grave difficulties as the Japanese economy is suffering a severe recession. But
even in such a situation, some new demand and several new markets are emerging. In the years
ahead, the manufacturers will be required to work on the development of new products in answer tohigher public awareness of environmental problems at home and abroad and new technical trends,
including the weight reduction of automobiles and LEDs.

44