China will become the world’s leading producer of industrial machinery by 2011, according to the latest machinery production statistics from IMS Research (www.imsresearch.com). Within two years, the country will have moved from fourth in the world to first, overtaking Japan, Germany and the U.S. This rapid transition is fueled both by exports and the country's own increasing domestic demand, according to IMS.
China, like most other countries, has been affected by the global recession, and the rate at which its production of machinery is growing dipped steeply in 2009. However, its preceding strength means that, despite the credit crunch and the effects on its exports, China's machinery industry is forecasted to show continued growth in 2009. According to IMS Research's latest figures, it is predicted that machinery production in China this year will be higher than in 2008 by 3.9%.
"One reason for China's superior performance compared with its closest rivals is that the likes of Germany and Japan rely so heavily on exporting their products," explained Andrew Robertson, analyst at IMS. "Since the credit crunch has caused a huge drop in exports, these countries have particularly suffered. Although China's machinery industry does export vast amounts, it can also rely on its increasing domestic demand to prop up the industry in these difficult times."
