Manufacture all related machinery and design, replace manpower with mechanization, fully reduce personnel costs and increase efficiency, the upstream part is mostly component suppliers, the downstream is the manufacture of terminal machinery products, most of them are engaged in industrial machinery, responsible for assisting other industries in manufacturing and work.
Introduction to the Electrical Machinery Industry Chain
The electrical machinery industry is divided into upstream components and downstream machinery and equipment. The upstream part is divided into steel and cast-iron components, hardware components and spare parts, oil and air compression components, transmission components, electric control components, stamping components of mechanical equipment, etc. In the downstream equipment segment, it is divided into metal processing machinery, conveying machinery and spare parts, vehicle mechanical transmission equipment and spare parts, electromechanical system engineering, hand tools, vending machines, refrigeration and air conditioning equipment, and parts, metal processing, and industrial special machinery, etc.
Overview of the Upstream the Electrical Machinery Industry:
The hardware components related companies the upstream of the electrical machinery industry produce various types of precision metal parts, automobile and motorcycle parts, bicycle parts, mechanical hardware parts, power tool gears, pneumatic gun nails, furniture nails, automotive thread products and rollers, machinery The stamping parts and so on.
Oil and air compressor components are used in hydraulic or air compressors used in automation equipment: air compressors are mainly used to provide compressed air required for the factory's process, use electrical energy to compress the air, drive the crankshaft through the motor, and then compress the closed space The piston compresses the air to generate reserve kinetic energy for use by the drive.
A hydraulic press is a device that can convert fluid energy into linear mechanical force or motion. It uses special hydraulic oil as the working medium and the hydraulic pump as the power source. The force of the pump makes the hydraulic oil enter the cylinder through the hydraulic pipeline. There are several sets of seals in the piston, and then in the cylinder/piston. The seals at different positions are different, but they all play a role in sealing so that the hydraulic oil cannot leak.
Oil and air pressure-related parts such as hydraulic cylinders, hydraulic chuck tools, hydraulic tools, hydraulic pipe fittings, hydraulic joints, etc. The downstream hydraulic components are mainly used in the automotive industry.
Transmission components are mainly to transmit and convert power to achieve actions and functions, that is, to drive various mechanical power components such as gears, bearings, slide rails, etc. The related products include machining of precision metal parts, forging and manufacturing of automobile and motorcycle parts, and bicycle parts. Processing, power tools, automobile and locomotive components, slides and linear motors, stepper motors, servo motors, and DC motors, are mainly used in the aerospace industry downstream.
Electronic control components refer to various electrical control components such as switches, relays, and alarms used in electrical circuits, and are mainly used in the semiconductor industry downstream.
The stamping parts of mechanical equipment are parts made by stamping metal processing. The manufacturing method is to use molds and hammer tools to cut and bend them to shape them into the specified shape and size of the finished product. Casting, shearing, bending, cutting, drawing, molding, compression, and other different processing types form objects of a certain shape. Plastic processing can be divided into stamping, forging, calendaring, stretching, extrusion, and transformation. Among them, stamping OEM is the most representative, and stamping OEM can be divided into shearing, bending, stretching, compression, and special processing.
Stamping components are widely used in various electronic products, and due to the different types, functions, and sizes of various electronic products, the material, thickness, and precision of the required components are also different. Customers entrust stamping manufacturers according to their own needs. Develop and design molds.
Cast steel is a general term for products obtained by casting molten steel as a raw material, which is mainly used in the national defense industry.
The target customers of upstream parts manufacturers in the electrical machinery industry are mainly the downstream machine tool and related equipment industries. The customer base of upstream parts manufacturers is larger than that of downstream manufacturers. Especially when the economic cycle is upward, the growth momentum of parts manufacturers is higher than that of downstream manufacturers. to high.
Taiwan is a global leader in the bicycle parts industry and has become the world's largest exporter of bicycles. Benefiting from the continuous expansion of bicycle assembly demand in Europe and the United States, for example, front forks, frames, electric bicycle power system parts, derailleurs, and rims are all exported products of Taiwan's bicycle components. Taiwan has the world's largest bicycle chain manufacturer, supplying 90% of the braking systems in the world. In the past, due to the low-price competition between China and India, domestic manufacturers in Taiwan turned to mid-to-high-end bicycles, constantly striving for R&D and innovation, and developing towards high value, resulting in an increase in the average unit sales price year by year. Taiwan's bicycle exports accounted for 96%, mainly to Europe and the United States, accounting for 80% of the total exports.
At present, the global bicycle industry is evolving, and with the rise of AI and IoT technologies, bicycle manufacturers are in line with the global market trend, and the transformation of the bicycle industry has also combined two major technological trends to create a trend of smart riding. Traditional bicycles are equipped with motors, batteries, and control After the device and the networking function are added, it will become intelligent and become an electrically assisted bicycle. At present, it has been transferred from traditional bicycles to electric bicycles, and electric bicycles are currently very popular. Benefiting from the continued boom in the global bicycle market, although the second half of 2021 is affected by factors such as shortage of materials and cabinets, the demand for electric bicycles will double in 2021. Taiwanese electric bicycle manufacturers are also actively expanding production capacity and grabbing materials from upstream. However, the market is still in short supply, unable to meet client demand; and under the deferral of demand, it is estimated that the bicycle market will continue to be optimistic in 2022, and electric bicycles with high gross profit are still the driving force for the profit growth of bicycle manufacturers.
The epidemic has changed the way of life around the world. To maintain social distance, bicycles have become one of the best ways to commute and exercise. It will even become a new normal in the future. The overall market's enthusiasm for bicycles has continued to increase, especially with zero contact and physical fitness. The bicycle industry has risen against the trend, and with the popularization of electric bicycles, people who pay attention to environmental protection and green energy are almost replacing the existence of locomotives with electric bicycles, which is in line with the short-distance travel and mobility required by modern people.
If Taiwan wants to continue to expand the business opportunities of electric bicycles, the supply strategy in terms of manufacturing should be adjusted. At present, it is almost difficult for medium and high-end bicycles to avoid the MIT label. The frame, chain, and lights are all the strengths of Taiwanese manufacturing. At the time of the generational transition of electric bicycles, the key components of electric bicycles will involve more complex electromechanical integration functions. In addition, the epidemic has disrupted the pace of the global supply chain, and Taiwanese factories must deploy ahead of schedule to increase regional integration.
Common Upstream Categories:
- Hardware components: Such as enameled wire, various precision metal parts, automobile and motorcycle parts, mechanical hardware parts, power tool gears, pneumatic gun nails, furniture nails, automotive thread products and rollers, and stamping parts for machinery.
- Oil and air compressor components: The air compressor in the automation equipment is used to provide the compressed air required for the process of the drive. The oil compressor is a device that allows mechanical movement through fluids and is used downstream in the automotive industry.
- Transmission components: Gears, bearings, slide rails, power tools, automobile, and locomotive components, slide rails and linear motors, stepper motors, servo motors, and DC motors, etc. Components for driving various mechanical power, downstream applications aerospace industry-based.
- Electric control components: Refers to all kinds of electrical control components such as switches, relays, and alarms used in electrical circuits, mainly used in the semiconductor industry downstream.
- Stamping parts of mechanical equipment: Parts made by stamping metal processing, widely used in various electronic products.
- Steel and cast-iron components: The general term for products obtained by casting molten steel as raw materials, mainly used in the national defense industry.
Overview of the Downstream of the Electrical Machinery Industry:
The downstream products of electrical machinery cover all kinds of machinery equipment and parts. Metal processing machinery-related manufacturers produce hydraulic presses, paper shredders, food machinery, machine tools, comprehensive processing machines, cutting center machines, machine tools, punching machines, power tools, and printed circuits. Plate drilling machine, tool grinding machine, wireless control system, uninterruptible power system equipment, etc.
The products produced by industrial-specific machinery include sewing machines, baking machines, food and beverage automation production equipment, plastic injection molding machines, precision metallurgical grinding and processing machines, semiconductors, special gas pipeline engineering and production of vacuum process equipment chambers, industrial heavy-duty machinery such as boom lifts, loaders, excavators, drilling machines, forming machines and special machines for sheet metal processing, wireless control systems for green buildings, special machines and equipment for printers, labeling machines, conveying machinery and spare parts, mechanical transmission for vehicles Equipment and spare parts, mechanical and electrical systems engineering, hand tools (such as portable electric drills, chainsaws, portable electric engraving machines, portable electric disc grinders and metallurgical tools), vending machines, refrigeration and air-conditioning equipment and parts, metal processing, etc. In the electrical machinery industry, various machine tools are mainly used to produce metal parts required by various industries and are the basic tools of the manufacturing industry.
Common Upstream Categories:
- The downstream products of electrical machinery cover a wide range, such as equipment for making machines and parts, including hydraulic presses for metal processing, paper shredders, food machinery, machine tools, comprehensive processing machines, cutting center machines, machine tools, punching machines, electric power tools, printed circuit board drilling machine, tool grinding machine, wireless control system, uninterruptible power system equipment, etc.
- The machinery and components for the production of products include sewing machines, baking machines, food and beverage automated production equipment, plastic injection molding machines, precision metallurgical grinding and processing machines, semiconductors, special gas pipeline engineering, vacuum process equipment cavities, dynamic arm lifts, loaders, excavators, drilling machines, forming machines and sheet processing machines, green building wireless control systems, printer machines, and equipment, conveying machinery and spare parts, vehicle mechanical transmission equipment and spare parts, electromechanical systems engineering, hand tools, vending machines, refrigeration, and air conditioning equipment, etc.
The development Trend of Taiwan's Electrical Machinery Industry:
Taiwan's electrical machinery industry has considerable international competitiveness due to the characteristics of manufacturers with good technology, cheap prices, and many brands, as well as the continuous increase in global demand for intelligent automation. Mitigating the degree of impact, coupled with the small and diverse customization that Taiwanese manufacturers are good at, reviewing the process point of view from the user's point of view, and providing customers with systematic and integrated solutions are the value and advantages of Taiwanese machine tools.
In the second half of 2021, the global economy is still overshadowed by variables such as the appreciation of the Taiwan dollar exchange rate, rising raw materials, rising shipping costs around the world, and the virus panic. In addition, China's economic growth will slow down in the second half of the year. But as European and American countries lift the blockade, customers are pulling goods strongly. It is estimated that the export value of machinery in 2021 will reach 33 billion US dollars, and the output value will challenge NT$1.3 trillion and climb to a new peak.
The cumulative export value of machine tools in the first November of 2021 reached 2.525 billion US dollars, an annual growth of 29.5%, of which the export value of metal cutting machine tools was 2.097 billion US dollars, an annual growth of 29.8%. The export value of metal forming machine tools was 428 million US dollars, an annual increase of 28.4%. The top ten countries for Taiwan's machine tool exports are China, the United States, Turkey, Russia, Thailand, India, Vietnam, the Netherlands, Italy, and Malaysia in order of export value. The amount sold to China was 832 million US dollars, accounting for 32.9% of the export market; the United States ranked second, with an amount of 297 million US dollars, accounting for 11.7%, and the third-largest was Turkey, with an amount of about 227 million US dollars, accounting for 9%.
Overall, business opportunities have emerged after the epidemic, and it is estimated that Taiwan's machinery market and machine tool market will still perform quite well in 2022. Only the recent performance of the New Taiwan dollar in Asia is quite strong. Compared with the depreciation of the currencies of Japan and South Korea, it is not conducive to the price competitiveness of Taiwan's exports, and even greatly erodes the profits of the industry. The government should actively stabilize the exchange rate to maintain it. Export competitiveness between Taiwanese factories and rival countries.
80% of Taiwan's machine tool manufacturers belong to small and medium-sized enterprises, with limited R&D capabilities, weak technology, and insufficient funds, and it is difficult to integrate with the information and communication system. Digital transformation is urgently needed. With the evolution of the mature industry 4.0 smart manufacturing technology, Taiwan Machine tool manufacturers also need to step up their steps to provide related supporting solutions such as remote processing, remote monitoring, AI production scheduling, unmanned chemical factories, and the establishment of cloud service standards. To realize the possibility of future factories and move towards smart machinery software and hardware actively further. The need for integration evolves.
China is the largest producer of machine tools and the largest exporter of Taiwan's machine tools. However, with the increasingly fierce competition in the domestic and international markets, the scale of Chinese enterprises has become larger and larger, and their competitiveness has become stronger and stronger. In the face of competition from Chinese companies, Taiwanese manufacturers can only improve their technology and actively transform to provide value-added services. And actively develop the Internet of Things and smart manufacturing to cater to future factories and high-performance five-axis processing machines in the automation market. Research and development of smart and composite machine tools, launching niche-type small and diverse market needs, and customizing the development of supporting equipment Solutions can enhance the competitiveness of Taiwan's machine tool industry.
The robot market has huge business opportunities, which are divided into industrial robots and service robots. Benefiting from the aging of the global population structure, robot production can reduce costs and prices, and the scope of application can be expanded to various fields. In the future, labor costs are expected to increase. The need for robots will be a long-term one. And in the future, robotics and automation are a trend, and smart manufacturing is important to the manufacturing industry. Especially after the epidemic, human beings must adapt to new lifestyles, and the global manufacturing industry is forced to seek breakthroughs. Robots and automation will be the core of corporate decision-making in the future.
Taiwan has a complete supply chain system in the electrical machinery industry. As AI smart devices are about to enter everyone's life, the combination of IoT and AI can maximize efficiency and optimize benefits, and develop into artificial intelligence networking (AIoT). The mainstream trend of technology in the future will help companies reduce costs, improve efficiency, explore new business opportunities, and then develop new business models. Its application industries include smart healthcare, smart cities, smart retail, and smart manufacturing.
Only by developing smart machinery and related applications can Taiwanese companies lead Taiwan's manufacturing industry to change. At present, the largest market demand is for customized, automated, and intelligent machine tools and equipment. Looking forward to the future, smart manufacturing will use automated production, the Internet of Things, smart robots, supply chain interconnection, and big data. And when "automation" and "robot" are integrated, it is not just the application of technology, but complements each other and upgrades to "intelligent" automation, and will become the best support for the development of Taiwan's smart manufacturing and machinery industries. It is expected that Taiwan's machinery, information and communication, and smart technology companies will cooperate, build up their strength and leverage their strengths, attract international cooperation with Taiwan, and grasp a new round of business opportunities.
