Analysis of the Influence of the Appreciation of Japanese Yen on CNC Cutting Machine Tools
May 29, 2023
Affected by the continuous appreciation of the yen, Japanese manufacturers of CNC cutting machines have been forced to strengthen overseas production mechanisms and optimize their production throughout the world. The internationally renowned Yamazaki Mazak Company stopped the domestic production of some small and medium-sized CNC cutting machines, and changed the way it produced and re-imported it from Japan into the United States to increase profits. Yamazaki Mazak also stated that depending on changes in the exchange rate in the future, it will further expand the types of imported CNC cutting machines and diversify exchange rate risks.
The appreciation of the yen has affected the competitiveness of Japan's CNC cutting machine manufacturers overseas. Japanese companies that have already transferred their production bases to Asia have purchased 2-5 percent cheaper than Japan's. It is estimated that Taiwan's CNC cutting company Taitung Precision Machinery will achieve sales of 500 million yen per day in 2011, which is 8 times that of last year; Haitian International, a Chinese plastics molding machine company, recorded a year-on-year increase in daily sales in April-August 2011. Five times, this year is expected to sell 120 machines. In order to adapt to this change, Japan's CNC cutting machine manufacturers have been forced to strengthen their production and sales overseas, especially in Asia. Makino Milling Machine, OKK, and Toyohwa Industries have started production in Singapore, Thailand, and China to expand their production capacity.
According to another report, due to China’s financial tightening policy, China’s orders for CNC cutting machines in Japan decreased by 10.1% year-on-year in August, which fell for the first time in 23 months.
