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Metalworking Machine Tools and Accessories Industry\\Q lrade Summary Metalworking Machine Tools and Accessories USITC Publication 2765 April 1994 OFFICE OF INDUSTRIES U.S. International Trade Commission Washington, DC 20436 UNITED STATES INTERNATIONAL TRADE COMMISSION COMMISSIONERS Don E. Newquist, Chairman Peter S. Watson, Vice Chairman David B. Rohr Carol T. Crawford Janet A. Nuzum Lynn M. Bragg Robert A. Rogowsky Director of Operations Vern Simpson Director of Industries This report was prepared principally by Dennis A. Fravel Machinery Branch Machinery and Transportation Division Address all communications to Secretary to the Commi~ion United States International Trade Commi~ion Washington, DC 20436 PREFACE In 1991 the United Stares International Trade Commission initiated its current Industry and Trade Summary series of informational reports on the thousands of products imported into and exported from the United Stat.es. Each summary addresses a different commodityfmdustry · area and contains information on poduct uses. U.S. and foreign producers, and customs treatmenL Also included is an analysis of the basic factors affecting trends in consumption, production, .and trade of the commodity, u well u those bearing on the competitive~ of U.S. industries in domestic and foreign mmkets.1 This report on metalworking machine too~ and accessories covers the period 1988 through 1992 and i'epresents one of approximately 250 to 300 individual reports to be produced in this series during the first ba'1f of the 199<& Listed below are the individual ·summary repons published to date on the Diacbineiy and transporUdion sector. usrrc publication Publication number date Title 2430 November 1991 Aircraft, spacecraft. and related equipment 2505 April 1992 .•••••••.•. Caostruction and mining equipment 2546 August 1992 •••••••.. Agricultural and horticultural machinery 2570 November 1992 •••••• Electric household appliances 2633 June 1993 .••..••••• Textile machinery 2746 March 1994 •.•••••••• Aircraft and Reaction Engines, Other Gu Turbines, and Parts 2751 Marcb 1994 •••••••••• Catain Motor-Vehicle Parts and Accessories 2756 March 1994 ••••••••• Air-Conditioning Equipment and Parts 2765 April 1994 ..••..••••. Metalworlcing Machine Tools and Accessories 1 The infomwion md analysis provided in this report me for the of this report only. Nothing in this report should be construed to ·indicate how the ~would find in m investigation amducted under ltalUtory authority covering the ame or similar subject matter. i CONTENTS Page Preface . • . • . • . • • . • . • . • • . • . • i Introduction . • . • . • • . • • • . • . • • • • • • 1 U.S. industry profile . • . • . • . • . • . • • • . • . • . • . • • • • . • • • 3 Industry Str'UCtllre • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 3 Firms . • . • • . • . • . • • . • • . • • • • . • • • • . • • • . • • • • . • . • • . • • • . • • . • • • • . • . • • • . • • • • • . 3 Employment . • . • . • . • . • . • • • • • • • • • . • • . • . • . • • . • • • • 4 Financial perf~ ••••••• : •• : • • • • • • • • • • • • • . • • • . • • • • • • • • • • • • • • • • . • • • • • • • • • . • • • • 6 Mergers, acquisitions, and foreign mvestnlent . • . • . • • • • . • . • . • . • • . • 6 ~i~ e:tpenditures • • • • • • • • • • • • • • • • • • • • • • . • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 10 Disttibution . • • . • • . • . • • . • . • • . .• . • . • • . • . • • . • . • . ·. • . 10 Research and development . • . • . • . • . • . • . • . • . • • . 11 Other factors . • . • . • . • . • • . • . • • • . • . • • . • • • . • • . • . • . • . • • . • • 12 U.S. Government prognuns . • • . • . • . • . • • . • . • • • . • • . • • . • . 12 The Maehine Tool I>omestic Action Plan • . • • . • . • . • • . • . • . • . • • • . 12 Other Government prognuns . • • . • • • . • . • . • • • • . • . • . • . • . • • • • • • . • • . 14 Consumer characteristics and factors affecting demand . • • . • • . • • . • • . • . • . • . • . • 14 Foreign industry prorale • . • • • • . • • • . • • . • • . • • . • . • . • • . • • • . • . • • 17 U.S. trade measures • • . • • . • . • . • • • . • . • . • • . • • . • . • . • • . • . • . • . 21 18rifJ measures . • . • . • ... • . • . • . 21 Nontaritf measures . • . • . • . • . • . • • • . • . • • 21 U.S. Government trade-related investigations . • . • . • . • . 21 Foreign trade measures . • . • . • . • • . • • . • • . • . • . • • • . • • . • • . 28 Tariff measures . • . • . • . • . • . • . • . • . • . • . • • 28 Nontaritf measures . • . • . • . • . • . • . • • . • • . • . 29 U.S. market . • . 29 Consumption • • . • . • • . • . • . • • • . • • • • • . • • . • • . • • . • . • . • • • . 29 Pnxluction . • • . • . • . • • • . • . • • . • • . • • . • . • • • . • • • . 31 U.S. Imports • . • • . • • • . • . • • . • . • • • . • . • . • • . • • • . • • • . 32 Foreign .markets • • • • • . • . • • . • . • • . • . • . • . • . • . • . 33 Foreign market profile . • . • . • . • . • . • • . • • . • . 33 U.S. exports . • • . • . • • . • . • . • . • . • • . • • . • . • . • 35 U.S. trade balance . • . • • • . • • . • . • • . • . • 36 Appendixes A Explanation of tariff and ttade agreement ternls • . • . • . • . • . • . • • • • • . • • . A-1 B. Statistical tables .....•...•.............••.....••...•....•........•......•..••..•.••. B-1 Figures 1. U.S. metalworking machine tools and accessories: Principal c:Omponents, producer types,. major products, and principal consumers . • . • . • . • . • . • . • . 4 · 2. Metalworking machine tools: U.S. mmket, by sector . • . • • . • • • . • . • . • 15 3. Selected destinations for MMTA exports of major producing countries, 1992 . .. • • . • . • . • . 19 4. New capital expenditures for machinery and equipment by certain SIC industries, and apparent U.S. consumption of MMTA 1982-91 •....•...•.... ~............ 30 5. MMT unfilled orders vs. shipments, by quarter, 1987-92 • • . • . • • . • . • . • • • . • • . • • • . 31 6. U.S. metalworking machine tools and accessories: U.S. imports, producers' shipments, and apparent consumption, 1988-92 . • • . • • • . • . • . • • . • . • • • . • 32 iii CONTENTS-Continued Page Tables 1. Metalworking machine tools and ~sories: Major types, by category . 2 2. Metalworking machine tools and accessories: Number of employees, production workers, production-worker average hourly earnings, and production-worker average weekly overtime for applicable SIC industries, 1988-92 . • . 5 3. Productivity (output per hour) indexes for all manufacturing industries, metalworking . machine tools, and machine tool accessories, 1988-92 . 7 4. Selected financial ratios for U.S. producers of durable goods and metalworking machine tools, 1986-92 . 7 5. Metalworking machine tools: Major MMT industry mergers and acquisitions, 1987-93 . 8 6. Metalworking machine tools: Major Japanese- and German-owned manufacturing establishments in the United States, 1992 . 9 7. Metalworking machine tools: Capital expenditures for new and used plant and machinery, by SIC industries 3541 and 3542, 1987-91 . 10 8. Metalworking machine tools and accessories: Producer price indexes for applicable SICS, 1988-92 . • . • . 11 9. U.S. Machine Tool I>omestic Action Plan . • . • . 13 10. Trends in components and systems due to end-user demands for speed, quality, and flexibility . • . • • . • . • . • . 16 11. Metalworking machine tools: U.S. population of machines in 1983 and 1989, by age categories . 16 12. Metalworking machine tools: Production for selected countries, the EU, and the world, 1988-92 . • . • . • . 17 13. MetaJworking machine tools: Leading producers of MMT, ranked by MMT sales, for Japan, Gennany, and the United States, 1992 . ..
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