The third major shift in the machine tool industry was the rise of foreign producers, especially Japan. Japan’s machine tool industry had been devastated by the war and the immediate aftermath (when many of Japan’s machine tools were shipped to China and the Philippines as war reparations), and by 1955 Japanese tools were just 0.5% of world exports. But Japan was eager to become a major producer of machine tools, and its manufacturers quickly became more capable. Between 1955 and 1960 Japanese machine tool production rose by a factor of 15, and in 1960 American Machinist magazine noted that “Japanese machines for the first time appear to merit recognition and to be competitive with machines of the most advanced industrial nations.” By the end of the 1960s, imports remained a small fraction of the US market (around 10%), but were gaining momentum: between 1964 and 1967, Japanese machine tool exports to the US rose over 1200%.
Cf Germany on paradoxical modernization effect of wartime infrastructure destruction.