Market for Computer Numerical Controls Is Volatile
Computer Numerical Control (CNC) is an application-specific motion control system for industrial machinery, primarily targeting machine tool OEMs. More specifically, CNCs are focused on the largest segment of the machine tool market, metal working machinery, with a relatively smaller target including a number of other material contouring and cutting applications in wood, plastics, and glass.
The Computer Numerical Controls market imploded during 2009. After nearly six years of continued growth leading up to the financial crisis in 2008, the CNC market had surpassed the $6 billion mark. This was unprecedented for a market that typically experiences single digit growth.
Machine tool builders, the primary consumer of CNC systems, are inexperienced in managing a business when the growth rates approach what is typical in emerging high growth markets. Machine builders invested in people and capacity to meet the market demand for machinery. The outcome was a trail of business failures, consolidation, bankruptcies, and strategic partnerships in the machine tool business.
Strategic Issues
This report discusses many of the trends that are occurring in the CNC market with special attention to the regional differences which are so critical to its success. Some of the key strategic issues include:
- Where is the market growing?
- Will the automotive sector continue to redeploy or purchase new machinery?
- How important will the services business become?
- What are the constraints of selling into the various markets?
- What types of CNCs are being purchased by companies in different regions of the world?
- What industries are purchasing CNC systems?
