Japan’s MT orders in 2021 raise for the first time in 3 years

Japan Machine Tool Builders’ Association (JMTBA) announced the confirmed figures of Japan’s machine tool orders for 2021. The total amount of orders received increased for the first time in three years, rising 70.9% from the previous year to 1,541.4 billion yen. China, which quickly recovered from the effects of COVID-19, was the first to recover, and from the second half of 2021, Europe, the U.S. and Japan followed it. It was the first time in three years that the amount of orders exceeded 1.5 trillion yen, and the fourth-highest on record.

Domestic demand rose 57.3% year-on-year (YoY) to 510.3 billion yen, exceeding 500 billion yen for the first time in three years. Orders in the first half of the year were weak due to the impact of COVID-19, but recovered in the second half due to a boost in orders from projects adopted for subsidies and the impact of the resumption of economic activity due to progress in vaccination. From September onward, the monthly level remained high at over 50 billion yen. By industry, all 11 industries saw YoY increases.

Foreign demand rose 78.6% YoY to 1.31 trillion yen, the first time in three years that it has exceeded 1 trillion yen. This was the second-highest amount of orders ever received. Particularly in October and November, a combination of rush demand associated with moves to raise machinery prices and large orders in the automotive and semiconductor industries in various regions resulted in monthly orders exceeding 95 billion yen. By region, orders in Asia rose for the first time in four years to over 500 billion yen. Taiwan and China recorded record highs, while the ASEAN region was less able to recover from the effects of COVID-19 than other regions. In Europe, the recovery started in the second half of 2021, mainly in the EU, and for the first time in three years, the orders increased YoY to over 200 billion yen. Italy, recorded the second-highest amount of orders ever, after 2007. Orders in North America increased for the first time in three years and exceeded 250 billion yen. The US, in particular, saw a recovery in demand across a wide range of industries and recorded the second-highest order amount on record.