Taiwan’s machinery business

MachinesIndustrySouth-East European INDUSTRIAL Мarket - issue 1/2014

It is expected that Taiwan will become the world’s third largest machine tool exporter
As known by consumers around the globe, Taiwan is home to many cutting-edge technology products. Industry experts are also familiar with the fact that Taiwan is no less valuable than any other developed country, such as Germany and Japan, in terms of its amazing capability in machinery and machine tool manufacturing.

Different countries have their own unique demands; nearly 80% of Taiwan’s machinery products are destined for export. This not only enables Taiwan to hone its extraordinary competitiveness in international markets, the products and after-sale services also become a bridge that connects Taiwan and its customers.

The partnership allows Taiwanese manufacturers to further understand customer needs, foster satisfaction, loyalty, and maintain their momentum for innovation. In fact, the reasonable cost and excellent quality of such products have already helped form solid industrial foundations for many developing countries.

Cluster effect’s advantages on exports
The core advantage of Taiwan’s machinery business starts with the industrial parks that have been carefully cultivated by the government. In addition to providing beneficial environments, these parks facilitate the manufacturers to collaborate, communicate and even form strategic alliances to offer customers with comprehensive, customizable yet highly competitive solutions.

Looking at the domestic market, the accelerated development of local manufacturing industries also presents enormous opportunities to the machinery suppliers. As value-added manufacturing processes require high-speed, high-precision machine tools. The suppliers strive to fulfill the needs by developing both advanced models and customer communication platforms for flexible, cost-efficient future products that are also well accepted on export markets.

It is expected that Taiwan will become the world’s third largest machine tool exporter with a total value of USD 7 billon. In contrast to the 15% to 50% export ratio of other countries, Taiwan’s astonishing 79% had created a USD4 billion value in 2011 with an equally impressive 35% annual growth rate. In the next five years, Taiwan’s exports to China, Southeast Asia, Europe and North America are anticipated to enjoy steady growth. The high-quality products and diligent services will be a major thrust behind many emerging Asian countries as well.

Development highlights and overseas markets
In addition to defining machinery as the third major area for the "Trillion NT Dollar Industry" vision after semiconductor and optoelectronics, the Taiwanese government aggressively nurtures the machinery industry for both domestic economic growth and global competitiveness through the elevated recognition of "Taiwan Excellence".

For domestic customers, TAITRA and the Taiwan Association of Machinery Industry joined forces to (TAMI) organize the Taipei International Machine Tool Show (TIMTOS). The largest exhibition of its kind in Taiwan and the second in Asia. The Taiwan International Machine Tool Show (TMTS) is hosted by the Taiwan Machine Tool & Accessory Builders’ Association and takes place in Taichung, the heart of Taiwan’s machinery industry. This gives international buyers another opportunity to learn intimately about the area’s complete supply chain and collaborative cluster.

In recent years, Taiwanese machinery makers were constantly spotted in all major trade shows such as MTT Expo, MTA and PDMEX in Jakarta, Ho Chi Minh City and Manila. They have also participated in industrial networks of Asian countries including Indonesia, India, Vietnam and Philippines. In India, Taiwanese companies played important roles in the 2013 EMMA Expo India opened in Chennai. Image pavilions, news releases, commercials and demonstrations were offered in these events to communicate the advantages of Taiwanese products.

Excellence from Taiwan
San Lung Gear Works, a winner of the coveted Taiwan Excellence Award with NT400 million USD annual revenue, deliver their distinguished products to over 60 countries and enjoys over 70% of the domestic market share. The San Lung products are not only "100% made in Taiwan", but have also won countless awards from iENA Nurnberg and Geneva International Exhibition of Inventions.
Also a "100% made in Taiwan" maker, Horng Tair Industrial is known in Europe, the Americas and many other countries for their 3-Layer ABA Adjustable Blown Film Die Heads that had won the 2012 InventEco Award in Italy.

In addition, crossed roller bearings from Hiwin Technologies, five-axis milling machine and lathes from Fair Friend Enterprise, vertical machine center and CNC lathes from Tong-tai Machine & Tools, surface grinders from Kent Industrial, wire cut EDMs and high-speed milling machines from Ching Hung Machinery and Electronic as well as PCB routers from Aurotek Corporation are all respected products and companies from Taiwan’s machinery industry.

Other excellent products such as processing machines and lathes from Lih Song Technology, Yeong Chin Machinery Industries, Chin Fong Machine Industrial and Mars Precision Machinery; cutting machines from United ProArc Corporation as well as products from Auto Well Enterprise, Wexten Precise Cooling Machinery, Cherng Jin Technology, Fu Chun Shin Machinery and Wele Mechatronic are all embraced by customers worldwide.

Vision on future business opportunities
As the backbone of manufacturing and technology advancements, machinery from Taiwan is not only a pivotal industry itself but also a key export category. It’s also gaining Taiwan more ground in the information, communication and consumer electronic development in the local market and many neighboring emerging countries.

In the upcoming future, Taiwan’s machinery industry will take advantage of its maturity and count on aggressive innovation and branding efforts to stay ahead of the curve. Taiwanese manufactures stride further to challenge themselves with higher added value, improved environmental friendliness and constant refinement. Through these endeavors, Taiwanese machinery will not only distinguish itself from that of the other countries, but also lead other industries full steam ahead to beat the economic downturn for the perpetual growth of both Taiwan and its partners.

Source: Taiwan Trade Center Sofia