Industrial equipment suppliers are one of the most valuable sources of supply chain expertise for companies in China and the world, and some of the biggest employers in the region.
With an average production capacity of more than 3 million metric tons a year, industrial equipment is a key component of the nation’s economic growth.
In 2017, Chinese industrial equipment manufacturers received nearly $6.8 billion in foreign direct investment, which is nearly three times more than they received in 2016.
The demand for industrial equipment in China has risen rapidly in recent years as a result of its economic success, with manufacturers producing more and more products for export.
China is home to more than 2.4 million industrial equipment suppliers, according to a report from the National Federation of Industrial Equipment Manufacturers (NFIFA).
While China’s demand for goods made with industrial equipment has been growing at a pace of over 5 percent per year, the country has not been able to fill the supply gap with new equipment that has been produced in other countries.
The National Federation estimates that China is now producing almost 40 percent more industrial equipment than in 2016, with nearly one-third of the growth occurring in 2016 compared to just 1 percent in 2016 and 0.7 percent in 2015.
China has also been expanding its production capacity, with the country producing nearly 2.8 million metric ton of industrial equipment last year.
While Chinese manufacturers are still working on the production of their new products, the demand for new equipment is likely to increase in the near future as Chinese companies continue to invest heavily in their facilities, according the NFIFA report.