In 2012, Russia ranked 22nd in the world in terms of output of the metalworking equipment ($179 million) after China ($27.54 billion), Japan ($16.25 billion), Germany ($13.62 billion), South Korea, Italy, Taiwan, the United States and Switzerland.
The share of the machine-tools industry in Russia’s GDP stands at 0.03%. The consumption of all types of machine tools grew by 12.8% in 2012.
In 2012, imported products in the industry reached 91.2% in Russia: machines 93.3%, tools 88.1%, and abrasive products 83.4%. Exports of machine tools are also high at 58.1%: machines 41.9%, tools 61.0%, and abrasive products 77.6%.
The main suppliers of machine tools in Russia in 2012 were Germany (25%), China (24%), Italy (11%), and the United States (7%). Russian manufacturers exported their products primarily to China (21%), Germany (18%), Belarus (14%), and Ukraine (8%).
Total investment in the industry’s fixed assets in 2006-2012 amounted to 2.7 billion roubles. Foreign investments in the Russian machine-tool industry are fairly insignificant ($ 4.7 million in 2012) and do not seem to have much influence on the industry.
Despite Government support and funding in the amount of 7.5 billion roubles in 2011-2013 under the subprogramme Development of the Domestic Machine-Tool and Tool Industry, 2011-2016 of the federal targeted programme National Technical Base, the share of domestic output purchased in Russia has declined from 19% in 2008 to 9% in 2012.
Most of the machine tools manufactured in Russia are not high-tech equipment. The level of innovations in the industry is low. Despite positive developments in the last few years (due to refinancing rate cuts by the Central Bank), the financial conditions for investing in the machine-tool industry are unfavourable.
Also, this subprogramme was developed in 2010 and does not include the later approved large-scale government measures to upgrade the defence industry that are currently carried out as part of the federal targeted programme Development of the Defence Industry.
In particular, the defence industry’s need for machine tools and forging equipment will amount to 600-800 billion roubles under the federal targeted programme Development of the Defence Industry, 2011-2020. The bulk of these funds (over 100 billion roubles per year) will be needed in 2015-2017.
- The existing production capacity of Russian machine-tool enterprises is insufficient for organising the production of the equipment for defence enterprises that were worked out at the first stage of the subprogramme, in quantities that are needed under the government programme to retrofit the defence industry.
In light of this, the main goals for the machine-tool industry are
- creating integrated entities for the comprehensive retrofitting of strategic enterprises, and re-adjusting the subprogramme as it relates to the needs of the defence industry;
- increasing the production capacity of the Russian machine-tool industry over a short period of time by consolidating and enhancing the efficiency of existing production capacity;
- implementing state-sponsored major investment projects for capital construction, renovation and retrofitting of the production facilities of strategic engineering companies.