Industry Focus

Overview of 2022

Chinese Fastener Machinery
2023 Outlook
Market and2022年中國緊固件機械市場與2023年展望

China Fastener World no.68/2023

Introduction
China’s machinery industry is emerging
as a global leader, as it enters a new phase of
producing high-end products. According tothe China Machinery Industry Federation, theindustry achieved a sales revenue of 12.95 trillion
yuan (USD1.87 trillion) in the first half of 2022,
showing a 5.44 percent increase compared to 2021.
The sales revenue and total profits of the strategic
emerging subcategories accounted for 79.3 percent
and 76.64 percent of the overall machineryindustry, respectively, reflecting growths of 3.38
percent and 2.67 percent.
Af ter yea rs of effor ts made by Chinese
enterprises, the global engineering machinery
market formerly dominated by manufacturers
from Taiwan, Germany, Italy, the United States,
and Japan is opening the door for Chinese players,
as the key to such a situation is competitiveness.

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Undoubtedly, in the past few years, the level of China’s manufacturingindustrial chain in general and machinery industry in specific experienced aswift growth in development. This was the result of the systematic improvementof China’s comprehensive national strength and the qualitative leap in innovation
capability.
In addition to that, the government’s beneficial policies promoted thedevelopment of China’s high-end smart manufacturing. Good examples are thedevelopment plans for Hunan and Jiangsu Provinces.
During the 13th Five-Year Plan period (2016-20), Hunan Province witnesseda significant growth in its R&D investment, with the total investment doubling.
Furthermore, the sales revenue of the sector in Hunan exceeded one-quarterof the national level, and the total added value of high-tech industries in theprovince reached an impressive 1 trillion yuan. Hunan provincial government
has continued to prioritize technological innovation during the 14th FiveYear Plan (2021-25), as evident in the draft guideline issued in 2021. The focusof the guideline is on making key technological breakthroughs, refining thetechnological innovation system, enhancing enterprises’ capacity for independentinnovation, and consolidating technological foundation.

Industry Focus
Xuzhou, located in Jia ngsu province, is renowned
for its engineering machinery and is actively working topromote the industry to a world-class level. The engineeringmachinery cluster in Xuzhou was among the first batch ofnational advanced manufacturing clusters. Over the years, thegovernment has been dedicated to building the cluster into one
with a complete industrial chain. As of 2021, the output value ofthe machinery industry for enterprises whose annual businessincome hits 20 million yuan each in Xuzhou made up 30 percentof the city’s total industrial output value in the same category.
Furthermore, in the first half of the year, the output value
reached an impressive 77.5 billion yuan.

Fastener Machinery
As stated above, Chinese fastener machinery market iscurrently undergoing a shift towards high-quality development.
Chinese manufacturers are proving their ability to produce
not only high-quality products, but also to exercise advanced
management skills, thereby transforming the label of “made inChina” to “smart fastener machinery manufacturing”.

Despite steady growth, the fastener machinery market has
been facing some challenges due to various factors such as
rising labour costs, environmental regulations, and increasing
competition from other countries. In response, like any otherindustry, industrial fastener machinery manufacturers in China
are increasing their efforts to explore international high-end
machinery markets by constructing internationalization levels
and growing market shares.
Fastener machines have been drastically transformedby leveraging on disruptive technologies and become muchsmarter than before. Machines can assist fastener manufacturers
in solving some of their key production issues, such as low
automation rates, and poor production line flexibility. Chinese
manufacturers have been investing in advanced technology andautomation to improve efficiency and reduce costs.

There are no shortcuts in the machinery industry; only bypersistently striving towards innovation and development canenterprises lead the way towards the future of manufacturing.
Chinese fastener machinery enterprises have seized domestic
development opportunities and have demonstrated theirprowess in enhancing technological innovation capabilities,
manufacturing high-end machinery products equipped withindependent core technologies.
China is one of the largest producers and exporters offasteners in the world. The country has a highly fragmented
market with many small and medium-sized enterprises. In thelast few years, Chinese fastener machinery market was growing
at a steady pace due to the high demand for fasteners from theconstruction and automotive industries.
The market is driven by the growing demand for fasteners
in various industries, including automotive, construction,aerospace, and electronics, among others. According to a reportby Grand View Research, the fastener machinery market

China Fastener World no.68/2023

in China was valued at USD 2.47 billion in 2020 and is
expected to grow at a compound annual growth rate(CAGR) of 4.8% from 2021 to 2028.
The market is highly competitive, with many domestic
and international players vying for market share. The fastenermachinery market in China is characterized by intensecompetition, rapid technological advancements, and increasing
automation. Many players in the market are investing heavily inresearch and development to improve the efficiency and qualityof their machinery.
Ch inese gover n ment has a lso been promot ing t hedevelopment of the fastener machinery industry, providing
va r ious i ncent ives a nd pol icies to suppor t domest ic
manufacturers. For example, in 2019, the government

launched the “Made in China 2025” initiative, whichaims to upgrade the country’s manufacturing industry,including the fastener machinery sector, throughinnovation and technology.

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The COVID-19 pandemic also had an impact on the market,
with a slowdown in demand and disruptions in the supply chain.
However, as the pandemic is brought under control, the market
is expected to rebound and continue its growth trajectory in thecoming years.
Overall, the outlook for the fastener machinery market in
China remains positive, with a continued focus on innovationand technology likely to drive growth in the industry. Chinese
fastener machinery market is expected to constantly increase
its strength and performance through technical innovation andindustrial upgrade. The increasing use of lightweight materials
in the manufacturing of vehicles, coupled with the need forfasteners that are stronger, more durable, and corrosion-resistant,is also contributing to the growth of the market in 2023 andbeyond.
Sources:
Machinery sector ups high-end transformation, ChinaDaily
Market Analysis Report, Grand View Research
Article by Shervin Shahidi Hamedani
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