November 3, 2022
Machine tool industry in Japan is booming.
According to Japan Machine Tool Builders’ Association (JMTBA), the amount of machine tool orders received in September 2022 increased 4.3% year-on-year (YoY) to 150.848 billion yen, marking the 23rd consecutive month of YoY growth. The increase in demand due to the end of the half-year period of the current fiscal year and the positive effects from major overseas machine tool trade shows helped the total orders topped the 150 billion yen level for the first time in three months.
Given the favorable business environment, JMTBA has revised upward its forecast for total orders for this year from 1.65 trillion yen at the beginning of the year to 1.75 trillion yen. The breakdown is 600 billion yen for domestic and 1.15 trillion yen for foreign demand, which would be a record high. If this new figure is achieved, it will be the second-highest on record, following 2018 (=graph).
There are still many concerns such as semiconductor shortages or inflation, but active demand for automation and strong demand for semiconductor manufacturing equipment are expected to keep driving orders for machine tools.
In such a favorable market condition, the 31st Japan International Machine Tool Fair (JIMTOF2022) will open on November 8, 2022. The fair will be the largest ever, with 1,086 exhibitors and 5,619 booths. This will be the first time in four years that an in-person JIMTOF has been held, and there are high expectations for future increases in orders.