China's machine tool industry's total output value is expected to exceed 500 billion

**Abstract** Introduction: China's machine tool industry has taken a leading position in terms of output value. The total industrial output value of the country's machine tool sector is expected to surpass 500 billion yuan, marking a significant milestone. It can be said that the five years of the "Twelfth Five-Year Plan" represented a golden period for the development of China's machine tool industry. This rapid growth has been closely tied to strong support from the national government. As the foundational equipment of the manufacturing sector, the machine tool industry has received increasing attention from society, creating an unparalleled environment for the advancement of CNC (Computer Numerical Control) machine tools. In key policy documents such as the "National Medium- and Long-Term Science and Technology Development Plan (2006–2020)" and the "Several Opinions of the State Council on Accelerating the Revitalization of Equipment Manufacturing Industry," CNC machines have been given special importance and a favorable policy framework. In 2006, the State Council established the "Leading Group of High-end CNC Machine Tools and Basic Manufacturing Equipment" to guide the industry's development. Later that year, the National Development and Reform Commission, along with several other ministries and institutions, held the first working conference dedicated to the development of high-end CNC machines and basic manufacturing equipment. Currently, the machine tool industry is showing several new characteristics. First, there has been considerable progress in product structure adjustment, with a shift from producing low-end products to focusing more on high-end and specialized machinery. Second, independent innovation has yielded remarkable results, with the rapid development of high-speed, precise, multi-axis CNC machines, as well as large-scale, heavy-duty cutting tools. Third, fixed-asset investment has grown rapidly, with major technological upgrades improving production capacity, especially in heavy-duty machine tools. Fourth, business operations are being transformed, with efforts to improve efficiency, reduce costs, optimize supply chains, and enhance technical support for customers. Despite these positive developments, some deep-rooted issues remain. For example, the leading products of the industry do not fully meet the needs of the national economy. There is overcapacity in low-end products, while high-end products still face shortages. Additionally, the development of domestic high-performance functional components lags behind the mainframe industry, and many scientific research projects have not translated into effective industrial applications. In 2013, the machine tool industry must focus on strategic priorities, clarify its direction, accelerate structural adjustments, and promote sustainable and healthy development. First, it should speed up product restructuring by reducing low-grade, general-purpose production, eliminating outdated and energy-intensive products, and developing high-tech, high-value-added solutions. It should also move from selling individual machines to providing complete production lines. Second, the industrial chain should be further improved. Increased policy support is needed to break through bottlenecks, especially in the development of CNC systems and functional components. Encouragement should be given to the production of advanced cutting tools, precision measuring instruments, and high-grade abrasives. Third, corporate restructuring should be implemented. Key enterprises should leverage their mass production capabilities, encourage concentration in general-purpose machine manufacturing, and support specialized CNC manufacturers. Enterprises should expand their scale and optimize assets to move toward a "big and strong" or "small but specialized" model, while promoting lean management and agile production. Fourth, the level of professional manufacturing processes should be enhanced. Improved production organization, resource allocation, and regional integration of casting, forging, heat treatment, and surface treatment will help build specialized centers. Advanced manufacturing technologies and clean production methods should be promoted to increase material utilization and productivity while reducing energy consumption and pollution. Finally, the trade structure should be adjusted. Import standards for equipment and technology should be continuously raised, and export quality should be improved. Efforts should be made to reduce the export of high-energy, high-pollution, and resource-based products, while increasing the proportion of high-end CNC exports and expanding technical service exports to boost overall industry benefits.

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