China keeps top tool spot

Two years ago China moved from fourth to first place in consumption of machine tools. It stayed there a year ago and again retains that top spot, further increasing its lead over other consuming countries.

According to the most recent annual survey of production and trade in machine tools, Chinese factories acquired an estimated $9.2-billon worth of machine tools in 2004, once again out-investing their competitors in Japan, Germany and the US.

Chinese consumption gained 37% in a year that saw most other industrial nations coming out of a protracted slump in investment in capital goods. When measured in dollars, Japan had a 44% gain, and Taiwan nearly doubled its installations of machine tools.

Other economies that showed a significant percentage increase in machine tool consumption last year include the UK and India.

American durable-goods factories boosted their installations by a very healthy 26% in 2004, and the country retained fourth place in world consumption. Throughout the 90’s, the US had been far and away the leading purchaser of machine tools.