Market Trends of Asia-Pacific Precision Turned Product Manufacturing Industry
This section covers the major market trends shaping the APAC Precision Turned Product Manufacturing Market according to our research experts:
Growth of Precision Manufacturing Sector and allied MSMEs
Precision engineering machines have grown in popularity due to their computerized accuracy, improving manufacturing processes' productivity and efficiency. Precision engineering's scope is expanding as technological possibilities expand. Precision engineering machines enable automated operations, reducing the time required for machine components. Once the machinist enters the codes into the computer, these machines can continue operating without manual intervention or supervision. Robots, or industrial automated machines, have proven to benefit both discrete and continuous manufacturers in various ways. Among these advantages are more efficient production procedures and increased productivity.
The manufacturing sector in India will be a driving force in the country's journey to self-sufficiency and economic power. National Statistical Office (NSO) estimates that the manufacturing sector currently contributes 17% of India's GDP and has a strong multiplier effect on other allied sectors. As India accelerates its growth targets, businesses in the sector are becoming more conscious of reducing unwanted losses and downtime to increase productivity and profitability. Investing in cutting-edge technology, selecting superior lubrication solutions, and ensuring regular maintenance and servicing are all critical.
Beijing has assisted global manufacturers with its meticulously built-up infrastructure and plentiful industrial supplies over the last two decades. Even in sectors where it does not dominate, the country's control over production processes grew rapidly. Countries ranging from the United States to Vietnam and Indonesia are all attempting to position themselves as alternatives. Parts of the supply chain may shift away from China, but only some countries can come close to building such a complex network of factories in such a diverse range of industries. Switching agreements and suppliers takes time, as does setting up operations that have been in place for years.
Demand of Precision Engineering Products in ASEAN Countries
Manufacturers in Singapore are actively pursuing collaboration with the city state's thriving start-up ecosystem, driving efforts to find new advanced manufacturing solutions and positioning Singapore at the forefront of the physical and digital worlds' convergence. Manufacturing accounts for 20% of the national GDP, ranking Singapore second globally in the World Economic Forum's Readiness for the Future of Production Report. To drive further growth, the government launched the Singapore Smart Industry Index. This tool allows manufacturers to assess the readiness of their facilities and develop more informed Industry 4.0 road maps across three main pillars: process, technology, and organization.
SAM Engineering & Equipment (M) Bhd, which serves the precision and equipment markets, anticipates lower sales in the coming months. Given softer consumer electronics demand amid rising inflationary pressures and interest rates, its management has become cautious about the company's second half of its 2023 fiscal year (2H23), which runs from October 2022 to March 2023. Due to softer demand, the group anticipates lower equipment sales, in line with the global semiconductor industry's slowdown. This could result in lower sales of data storage equipment.
