Giving an indication of upbeat mood in auto component Inc., machine tool manufacturers said that the investments by auto component makers is on the upswing, which is expected to boost their fortunes as well.
In the recently concluded Machine tool Expo, AMTEX, almost all of the exhibitors said that they have seen a better demand from auto component makers in the first quarter of financial year 2017 as compared to same quarter a year before.
Auto component industry arguably forms the largest client base for the machine tool industry and any ups or downs in the industry has an impact on the industry proportionately.
One of the reasons for companies to start investing in automation is the rising cost of labour in India. “Many companies have been looking to invest in automation for sometime because of the constant rise in labour cost and now with the market starting to look up, the investments into new automation machines are also coming back,” said Goel.
Along with automation, the auto component makers are now extensively focusing on improving quality as well, which again is adding to demand for the machine tools manufacturer like laser cutting system manufacturers and also measurement solution makers.