(Yicai Global) Feb. 21 -- Chinese manufacturers of wood computerized numerical control equipment are increasing capacity as the country’s growing demand for custom-made furniture spurs furniture factories to upgrade their equipment and the rapid development of domestic suppliers encourages them to choose local over imports, according to Yicai Global research.

Recent advances in locally-made equipment means that China-made gear performs as well as, if not better than, imported machinery, He Jianwei, deputy general manager of Nanxing Machinery, told Yicai Global.

There are also cost advantages, said Mai He, president of Tuodiao CNC. A piece of machinery made by Tuodiao is more efficient that a similar German product and costs only CNY750,000 (USD118,565) compared with CNY2 million for the latter.

“We will be replacing imports with our own products soon,” said He. Local suppliers are also able to provide more product adaptations and better after-sales service.

Both custom and mass-produced furniture firms are upgrading to smart production lines to improve efficiency, hike capacity and increase average sales per unit area with fewer human resources and less land coverage, He said. Dongguan, southern Guangdong province-based Nanxing Machinery has received many orders this year, most of which are for automated production equipment, he added.

Tuodiao, which counts China’s top 20 furniture makers among its clients, is looking for a new production base to expand capacity, Mai He said. It is likely to be in its home base of Guangzhou, southern Guangdong province where the supply chain is more concentrated and construction should begin this year. The firm might also build another plant in southwestern or central China next year, he said.

The increased synergy between local equipment makers and industrial software companies is also encouraging China's leading furniture makers to buy more locally.

“Since the beginning of spring this year, more bosses have contacted me looking at how to increase efficiency at lower costs,” said Cai Zhisen, founder and chief executive officer of Sunvega, software provider to Tuodiao. “Refinement is the next theme of the furniture manufacturing industry.”

As big firms take the lead in upgrading their machinery, more small and medium-sized companies are likely to follow suit, Mai said. This could lead to a wave of investment in automated carpentry equipment from 2022 and 2024.