Interactive Chart: Tracking Machining Center Exports from 2002 to 2021

The Interactive Chart

The interactive chart shows horizontal machining centers on the left and vertical machining centers on the right. The chart clearly demonstrates the dominance of Japanese machining center manufacturers and their ability to respond to large upswings in international demand. It is followed by observations from the 80 time periods covered and review of publically available production, export, and import data.

Instructions

Types of Machining Center

Machining centers are advanced CNC machine tools used to mill, drill, and bore workpieces which cannot be cut on a CNC lathe. They are equipped with an automatic tool changer (ATC) and tool magazine which makes continuous machining possible.

Machining centers can be broadly classified into horizontal and vertical types depending on the orientation of the cutting tool spindle (i.e. z-axis). A horizontal machining center (HMC) has a horizontal spindle and a vertical machining center (VMC) has a vertical spindle. The typical layout of both types of machining center is illustrated below.

Vertical machining centers are all-purpose machines designed to be operated by skilled machinists in a standalone process such as a machine shop. The vertical orientation of cutting tools makes them very accurate for finishing operations and reduces machine footprint. However, the need to cantilever the cutting spindle out over a workpiece heightens machine profile and reduces rigidity. This makes vertical machining centers less suited to heavy duty cutting. Tool life and finish quality may also be adversely affected by chips remaining on the cutting surface.

Horizontal machining centers are often found in production lines because pallet changers (APC) can be attached more easily and they have inherently less downtime than vertical machining centers. The horizontal orientation of cutting tools makes them less accurate for finishing operations. However, the spindle is mounted low and inside the column, providing a more rigid structure for heavy duty cutting. Chips fall naturally into the bottom of the machine allowing uninterrupted operation.

Methodology and Scope

The data presented in this article is for 845710 [1], which is the Harmonized System (HS) 6-digit product code for machining centers. Unit construction machines (single station) and multi-station transfer machines are not included Monthly data is converted to quarterly data for data smoothing. Monthly data is converted to quarterly data for data smoothing. The average monthly US dollar rate is used for comparison. Data for Hong Kong is included in that of China.

Monthly data is not directly available from government agencies for all countries or periods covered in this article. Therefore, some monthly data is derived by mirroring [2]. Some government agencies report gantry type machines separately. These are included in vertical types based on the vertical orientation of the z-axis. Gantry type machining centers probably account for less than 10 percent of the value of vertical type exports [3].

The period covered is 2002 to 2021. The interactive chart shows the top 12 countries for each quarter. The following countries (18 in total) appear at least once in the top 12 — Japan (JPN), Germany (DEU), Taiwan (TWN), United States (USA), Korea (KOR), Italy (ITA), Belgium (BEL), Switzerland (CHE), United Kingdom (GBR), Netherlands (NLD), Czech Republic (CZE), Singapore (SGP), France (FRA), China (CHN), Spain (ESP), Austria (AUT), Brazil (BRA), and Poland (POL).

Market Share

In 2021, the top three countries accounted for approximately 71 percent of machining center exports. Japan’s export share was about 36 percent, Germany 23 percent, and Taiwan 12 percent. Chart 2 shows that the market shares of the three leaders have remained remarkably stable against a background of rapid market growth. For example, global machining center exports quadrupled between 2002 and 2012, while the share of the three leading countries only fluctuated between 64 and 73 percent. In contrast, the market shares of United States, Italy, Switzerland, and Korea fluctuate greatly, although they always manage to remain in the top 12.

Source: DESA/UNSD, United Nations Comtrade Database

Japan is the leading exporter of machining centers. Its machining center manufacturers invest heavily in research and development and are located near many growing economies in Asia, including China, the largest single importer of machining centers.

Germany is the second largest exporter of machining centers. A capacity for innovation nurtured by the demands of large industrial customers in Europe, enables German manufacturers to compete successfully in a large number of export markets.

Taiwan is the third largest exporter of machining centers. Taiwan exports to a large number of countries, including the United States and Germany. Taiwan’s exports to China are affected by the two countries’ complex political relationship.

Machine Type

Vertical machining centers account for two-third of all exports. Japan is the undisputed leader in vertical machining centers, leading for 60 of the 80 quarters, and often exporting more than twice the nearest competitors Germany and Taiwan. Taiwan leads vertical type exports for 15 of 80 quarters, and Germany for the remaining five quarters.

Horizontal machining centers account for one-third of all exports. Japan and Germany are the largest exporters of horizontal machining centers due to their dominance in the automobile manufacturing industry. Japan leads horizontal type exports for 63 quarters and Germany for the remaining 17. Korea is the third largest horizontal type exporter, although at a much lower level than Japan and Germany. Korea is the only country to consistently export more horizontal machining centers than vertical.

Demand Fluctuations

Demand for vertical machining centers is quite volatile compared with horizontal machines. Much of this volatility is caused by large swings in China’s import demand. Demand for horizontal type machines tends to be more level due to fairly stable demand from the automotive manufacturing industry, the leading user of horizontal machining centers. Japanese machining center manufacturers are probably able to expand their market share during upticks in China’s demand because the Japanese machine tool manufacturing industry responds more rapidly to changes in demand [4].

Value-Added (Price per Ton)

Germany demands the highest price per ton for its machining center exports, followed by Switzerland and Japan, with machines from Korea and Taiwan selling at a 30 to 40 percent discount per ton compared with Japan. Germany’s horizontal type machines sell at a premium per ton compared with its vertical type. The reverse is true for Japan, where vertical type machines sell at a premium compared with horizontal type machines.

Exporter, Importer or Distributor

Countries in the top 12 exporters can be characterized as net exporters, net importers, or distributors based on the nature of their foreign trade in machining centers. Of the eighteen countries included in this article, as of December 2021, Japan, Germany, Taiwan, Korea, Switzerland, Singapore, United Kingdom, and Netherlands are net exporters. United Kingdom has a trade surplus [5] under 20 percent, Netherlands is under 10 percent, while the other six nations exceed 60 percent.

The remaining ten countries are net importers of machining centers. China, United States, Austria, and Brazil have trade deficits exceeding 100 percent. Italy and Spain have trade deficits under 30 percent, while the other four countries range from 40 to 70 percent.

Belgium and Netherlands are distributors of machining centers because they do not have any local production. As mentioned above, Netherlands has a small trade surplus. Belgium’s imports are similar in value to Netherlands. However, it exports only half as much, resulting in a trade deficit around 70 percent. Singapore used to primarily act as a distribution hub, but has successfully attracted overseas manufacturers that now produce there.

Conclusion

Machining centers are advanced CNC machine tools used in milling, drilling, and boring operations. Japan, Germany, and Taiwan are the top three exporters of vertical machining centers, accounting for approximately 70 percent of the total. Japan and Germany are the leading exporters of horizontal machining centers, accounting for 72 percent of the total. The export market for machining centers is expected to continue growing with the development of new subtractive and additive processes that may be incorporated into these machine tools.