2020/06/23 16:00 | Pageview:1724 | From: ITES Official
Cutting tool is the basic tool factor of machining in the manufacturing field and it plays an important role in the development of the machine tool industry.
According to the Analysis Report of Cutting Tools, currently, cutting processing accounts for about 90% of the entire machining workload. Although various advanced technologies are developed rapidly, in the foreseeable 21st century, cutting processing will still be the dominant processing method in the machinery manufacturing industry, and as the basic process equipment in cutting, the level of tool products will still play a vital role in the development of modern manufacturing.
As a famous tool brand, the name of Iscar is well known in the manufacturing industry. But aside from being a well-known tool company, Iscar is also a company favored by Warren Buffett. In 2013, Buffett has completed his buyout of Iscar's stake. As a company favored by Buffett, why Iscar is so optimistic about the Chinese market? What does Iscar's insight about current industry development?
Look beyond the manufacturing industry, Iscar is just a cutting tool company in the subdivision industry of the manufacturing sector. But it was such a company that attracted the attention of Buffett. In 2006, Buffett successfully invested in Iscar, and in 2013, Buffett completed his wholly-owned buyout of Iscar. Since then, Iscar has continued to develop at a surprisingly high speed and is now one of the world's largest manufacturers of metal cutting tools. Meanwhile, Iscar has become one of the main subsidiaries in the Berkshire Hathaway Inc. of Buffett.
As a company favored by Buffett, Iscar has its own advantages. In the unfavorable external environment in the past two years, Iscar still handed over a satisfactory performance. Beginning in 2018, the global economy has entered a new round of turbulence under the influence of trade wars and other factors, especially the Chinese automobile industry has experienced negative growth for the first time in 28 years, causing a huge impact on the manufacturing industry. But even in such an unfavorable market background, with the technical advantages of the full range of tools and the advanced layout in various fields, in 2019, Iscar tools still achieved good revenue, equivalent to 2018. Not only that, under the raged Covid-19 pandemic this year, Iscar's revenue of the first two quarters in China did not decline compared with the same period last year.
Although Iscar performed well in the crisis, Iscar has a clear understanding of the future development of the industry. “In the past five years, the entire cutting tool and tooling industry has benefited from the good environment of Chinese manufacturing and has been developing by leaps and bounds. It can now be seen that both the Chinese economy and the Chinese manufacturing industry have entered a new stage of steady development, attention to the growth quality will exceed the growth rate. We are fully prepared to promote the development of high-end manufacturing in China." Sun Qingfeng, product director of Iscar said.
The market is changing, and excellent companies can always be the first to detect changes in the environment and try their best to seize new opportunities as soon as possible. In communication, we found that Iscar has already selected a new direction for development.
The automotive industry has always been a top priority for tool applications. According to a rough estimate, the tool consumption of Chinese automobile manufacturing sector, and the upstream and downstream industries accounts for about 30% of the entire tool consumption in the manufacturing industry. It can be said that the automotive industry is one of the core driving forces for the rapid growth of China's tool market in the past decade or so. However, as the automotive industry ushered in negative growth, it has been very difficult for the tool industry to continue to achieve its own rapid development through automobile manufacturing.
Under this circumstance, this year's hot industries like 5G, medical, new infrastructure have undoubtedly attracted the attention of all industries. However, seeing opportunities does not mean seizing opportunities. Entering the emerging industry is not so easy. As far as the tool industry is concerned, the processed products of 5G, medical are more precision parts. The production and processing of these products are very different from traditional industries. "Difficult processed materials, complex workpiece shapes, and frequent small batch production have all put forward higher requirements for cutting tools. For a long time, Iscar has focused on the R & D of precise, efficient, safe, and reliable tool technology, and has rich technical reserves and case experience in relevant industries. This year we will launch dozens of new products, of which the product series for small parts and precision parts will be greatly enriched compared with the past." Sun Qingfeng said.
Taking the medical device industry as an example, we learned that Iscar will modify and adjust the existing applicable products according to the special requirements of the medical industry so that it can efficiently and economically process small parts. In addition to improving existing products, Iscar has developed cutting tools specifically for the medical industry based on the most suitable substrates, advanced coatings, specially developed tool shapes, and reliable clamping systems.
Facing new opportunities, with its innovative technology, rapid response to market demands, and strong ability to introduce new products, Iscar, a renowned tool brand, once again stands out in the ever-changing market. At present, China's economic development has entered a stage of "deceleration and quality enhancement". Although the global macroeconomic outlook is still uncertain, Iscar is still full of confidence in Chinese market development. " China has always on the top three of Iscar's global market. No matter how the external environment changes, as long as the fundamentals of the Chinese economy remain good, the good prospects of the Chinese market are beyond doubt. In the future, Iscar will only pay more attention to the Chinese market. "When talking about the future market prospects, Sun Qingfeng said.
Shenzhen International Tools Exhibition, one of the ITES themed exhibitions, gathers many international first-line tool brands to display high-quality hard tools, high-speed milling tools, high-precision drilling tools, etc. on Sept. 1st - 4th at Shenzhen World Exhibition & Convention Center. Please follow ITES's official website or social media for more information.