The Japan Machine Tool Builders’ Association (JMBTA) has reported that in November, the total value of machine tool orders in November was 115.90 billion yen.

This was an increase of 3.4% compared to October 2023 and marked the first month of month-on-month increase in two months. However, this figure represented a decrease of 13.6% compared to the same month of the previous year and marked the 11th consecutive month of year-on-year decline.

Total orders fell below 120 billion yen for two consecutive months, however exceeded 100 billion yen for the 34th consecutive month. Orders received in November were supported by foreign orders, but no major changes have been observed in the order situation.

Domestic orders fell by 2.8% from October, amounting to 32.70 billion yen. This marked the second consecutive month-on-month decline. Furthermore, this figure was a decrease of 28.4% from the same month of the previous year and marked the 15th consecutive month of year-on-year decline.

Looking at major industries, orders compared to October fell by 9.7% in industrial machinery, rose by 2.5% in motor vehicles, fell by 13.5% in electrical and precision machinery, and rose by 73.6% in aircraft, shipbuilding and transport equipment.

Foreign orders rose by 6.1% over October to 83.20 billion yen, marked the first month of month-on-month growth in two 11th consecutive month of year-on-year decline.

By region, orders from Asia rose by 10.3% over October to 33.69 billion yen. This was a decrease of 19.2% from the same month of the previous year. Orders from Europe rose by 10.8% over October to 20.18 billion yen. This was a decrease of 4.8% from the same month of the previous year.

Orders from North America fell by 3.1% from October, amounting to 26.70 billion yen. This figure was an increase of 9.7% over the same month of the previous year.

Orders in 2024 are anticipated to reach 1.5 trillion yen, marking the first increase in two years, with a modest 0.9% rise from 2023
The JMTBA disclosed that machine tool orders in 2024 are projected to total 1.5 trillion yen, reflecting a 0.9% increase from 2023, with the preliminary figure standing at 1.49 trillion yen (U$10 000 million).
In 2023, Japan machine tool orders experienced a 15.5% decline compared to the previous year, marking the first decrease in three years. Domestic demand for semiconductor manufacturing equipment and automobiles did not recover as expected, and external demand was affected by a significant slowdown in China, where the economy was in a slump.

Domestic demand in Japan dropped by 21.0% to 476 401 million yen, declining for the first time in three years and falling below the 500 billion yen mark for the first time in the same period. Meanwhile, external demand decreased by 12.7% to 1 009 603 billion yen. Although experiencing a negative trend for the first time in three years, this figure remained higher than the 736 712 billion yen recorded before the coronavirus pandemic 2019.

Reflecting on the situation, an executive at a machine tool manufacturer remarked, “We were expecting a recovery, particularly in the semiconductor sector, to begin in 2023, but the situation has regressed further than expected.”

For further details visit the JMTBA website at www.jmtba.or.jp