GIA announces the release of a comprehensive global report on Machine Tools market. World Machine Tools market is forecast to reach US$166 billion by the year 2017. Primary factors driving growth in the post recession period include increased infrastructure development activities in key end-use sectors such as manufacturing, power, shipbuilding and utilities, and robust demand from developing countries such as China, Taiwan, South Korea, Thailand, Malaysia, India, and Brazil, among others.

San Jose, California (PRWEB) October 12, 2011

Follow us on LinkedIn - As a key enabler of industrial revolution and as indispensable tools designed to mold, cut, shape, and fabricate almost all products under the sun, machine tools wield a major impact on productivity in the manufacturing industry. Machine tool industry will experience a steady demand so long as there is demand for manufactured durable goods such as automobiles, computers, and construction equipment, among others. World machine tools industry is sensitive to changes in the economic and financial climate. Demand responses to economic ups and downs are typically amplified in this industry highlighting the level of sensitivity to the broader economy. Changes in production capacity utilization, capacity expansions, and the level of business confidence strongly influence demand in the marketplace.

The machine tools industry confronted its toughest challenge ever by the financial crisis induced world economic recession in the years 2008 & 2009. Machine tools being capital goods came under the yoke of the recession with freezing of capital expenditure in the manufacturing and industrial sectors negatively impacting sales. Slowing levels of economic activity, complete collapse of global production & trade, fall in industrial production, commercial activity, plant closures, capacity idling, scaling back of operating capacity, and the resultant sputtering investments in industrial production resulted in broad based declines in machine tools market. The extreme sensitivity of the machine tools industry to the economic downturn can be traced to its heavy dependence upon end-use industries, such as, manufacturing, automobile and housing.

After a temporary period of lull, the world market for machine tools staged a remarkable recovery in the year 2010, as mirrored by the growth in annual value sales. Improvement in capital spending across key end-use industries, thanks to a strong resurgence in growth fundamentals such as increased demand for end products, subsequent rise in production needs and improved manufacturer confidence, especially has revived market prospects for machine tools in the year 2010. The sheer diversity of its application areas, ranging from aerospace and automobile manufacturing to electronics, non-electric machinery & equipment, wind power generation, process, mining and oil exploration too ensured that machine tools market staged a quick recovery. Increase in automotive and electronic equipment production in response to growing demand for new automobiles and electronics respectively, in particular had a positive impact on the demand for machine tools over the last few years. As manufacturers continue to re-directed their focus and efforts on achieving global competitiveness by increasing production capacities and productivity, machine tools market will witness tremendous gains.