Taiwan Hand Tools Industry for the Next Decade
Trend

Taiwan Hand Tools Industry for the Next Decade

The island's hand tools sector is a centralized industry hub located in central Taiwan, where big-name companies, small-and-medium enterprises across upstream and downstream, and subcontractors co-exist together to fulfill the world's hand tools orders. All are factors and advantages in international policies that Taiwan's hand tool industry maintains could hit NTD$140 billion in 2021 as of writing. The current trajectory would ensure continued growth for at least another decade.
Published: Apr 20, 2022
Taiwan Hand Tools Industry for the Next Decade
The COVID-19 pandemic's disruption on the economy has propelled the lesser-known aspects of the global supply chain into mainstream awareness, such as the focus on Taiwan as semiconductor chip demands soared. While Taiwan is more widely known as the semiconductor hub of the world, equally crucial to keeping the world's economy running are hand tools. The island's hand tools sector is a centralized industry hub located in central Taiwan, where big-name companies, small-and-medium enterprises across upstream and downstream, and subcontractors co-exist together to fulfill the world's hand tools orders. A hand tool could go through a dozen manufacturing processes, all through different companies in the area, before returning to the original contractor.

For Stand Tool, a local hand tool designer and manufacturer based in Taichung, Taiwan, representative Brand Hsiao says companies like them are at the forefront of the supply chain disarray, where smaller companies face the brunt of dealing with challenges on multiple fronts. Unlike more prominent companies with the capital to sustain operations through difficult times, SMEs have less of a fallback plan and are more likely to go under during crisis times.

Order volume has increased, yet with rising prices from shipping, delayed orders, raw materials, and such, Hsiao said these circumstances have made it difficult to do business. In addition, backed-up ports worldwide, especially in the U.S., a significant hand tools market for Taiwanese exports, had delayed delivery times in an unprecedented fashion. At the same time, the influx of orders had prompted Hsiao to question the circumstances amid the surge, saying the increase of orders did not reflect the usual peak season. Along with other industry experts cited by local media, he believes the order surge could likely result in a business lull after the influx of demand and further disrupt the usual business operations and predictability in the industry.

In terms of demographic issues, Taiwan's traditional industries face universal challenges similar to their counterparts in Western countries. However, while Western countries heavily rely on imports, manufacturing hubs still exist in Taiwan, yet could eventually lack people to work. Traditional industries such as hand tools and hardware often have an older, aging workforce, so once they retire, businesses would be hard-pressed to find replacements or find and retain younger workers to pass on the know-how. As a result, companies either need to rely on migrant workers, which have become difficult to obtain due to stricter border restrictions during the pandemic or have brought automation to production chains and greater emphasis on talent retainment.

On the other hand, traditional industries like the hand tools industry have seen their talent pool and resources gradually diminished by concentration on specific, popular sectors, where new hires are more likely to flock to, Hsiao said. However, this also highlights the difficulties and challenges for the other "less popular industries," such as the hand tools industry, as industry know-how and talent retention are less accessible and achievable.

To bridge the gap, in recent years, Taiwan Hand Tool Manufacturers Association (THTMA) had local companies, benchmark companies, China Steel Corporation, and the government pool resources together to innovate the manufacturing process and produce better quality products. With upstream companies such as China Steel providing quality raw materials and sub-contractors providing more specialized treatments, such as forging, heat treatment, and electroplating, Taiwanese hand tool companies quickly rolled out medium to high-end OEM products of big-name brands in the U.S. and Europe.

Taiwan's hand tool products are less competitive against Chinese products in terms of prices, but with the global economy entering the third year of the pandemic, Hsiao says the circumstances have shed an unflattering light on the pre-pandemic supply chain's just-in-time model. International policies, such as China's strict zero-COVID policies and power shortages in late 2021, have also caused further disruption of the supply chain. There is a need for greener energy and zero-carbon initiatives, which Hsiao says can become a deciding factor for companies deciding whether to do business in the country or not. All are factors and advantages that Taiwan's hand tool industry maintains. THMTA Chairman Huang Hsin-te was quoted by local media Global Views, that Taiwan's hand tools industry value could hit NTD$140 billion in 2021 as of writing. The current trajectory would ensure continued growth for at least another decade.

Published: Apr 20, 2022 Source :CENS

Further reading

You might also be interested in ...

Headline
Trend
What You Must Know: Global Commitment to Carbon Neutrality
In recent years, the extreme climate has intensified and the natural disasters have continued to be tragic. People all over the world have seen it, and related carbon reduction issues have resurfaced. Net Zero, Carbon Neutral, and Carbon Negative have become Popular keywords of the year, but do you really understand?
Headline
Trend
Will Micro LED Replace LCD and OLED?
The industry defines different LED technologies according to the size of the LED chip. For example, when the size of the LED chip is less than 150 μm, it is called a mini LED; and when the size of the LED chip is less than 50 μm, it is called a micro LED. As the size of backlight LED chips becomes smaller and smaller, the structure of the display panel also changes accordingly.
Headline
Trend
Germany Machine Tool Market Pulse and Industrial Application
Germany is the second-largest producer of machine tools in the world, after China. From the advanced German machine tool technology, to explore the development of the machine tool market.
Headline
Trend
The Future Development Trend of the Bicycle Industry
Electric bikes are one of the keys to the future of transportation, with more electric bikes sold in the U.S. in 2021 than electric and hybrid vehicles combined. The global bicycle market size is expected to grow by 38% by 2024.
Headline
Trend
New Trends in Technological Agriculture - Towards Agriculture 4.0
With the development of digital technology and the impact and challenges of climate change, the smart agriculture application market has gradually grown in recent years.
Headline
Trend
Understand 5G At Once! Three Major Features: High Speed, Low Latency, Multiple Connections
5G technology will power a wide range of future industries from retail to education, transportation to entertainment, and smart homes to healthcare. It will make mobile more essential than it is today. What is 5G? What are the industry applications of 5G technology?
Headline
Trend
Analysis of the Global Sports Industry - Sports Trends and Business Opportunities in the Post-Epidemic Era
The sports industry was hit by the epidemic from the beginning, and then the whole industry began to transform. Whether it is the fitness industry or the sporting goods industry, the original business and sales models have changed.
Headline
Trend
Weak Demand for Consumer Electronics, Ease the Shortages of Supply Chain!
In the first half of 2022, the consumer electronics market is affected by home economics, the epidemic in China, international tensions, and high inflation. In addition to the traditional off-season, the demand for related applications such as PCs, laptops, TVs, and smartphones has cooled significantly.
Headline
Trend
What is Supply Chain Management (SCM)?
Supply chain management (SCM) is the management of the flow of goods and services and includes all processes that transform raw materials into final products. It involves the active streamlining of a business's supply-side activities to maximize customer value and gain a competitive advantage in the marketplace.
Headline
Trend
Electric Vehicle Market Are Still Optimistic and Key Trends To Observe In 2022
The growth of the electric vehicle market in 2021 exceeds expectations, reviewing several major events in 2021, and sorting out the key trends worth watching in 2022.
Headline
Trend
What is the Future of the Bicycle Industry?
In recent years, the USA bicycle industry has experienced a slow, steady growth amid a series of disruptions. Between 2014 and 2019, dollar sales grew at a compound rate of 3 percent. With each passing year, consumers spent more, propelling impressive investment in burgeoning new segments such as gravel, Ebikes, composite bikes, event bikes, and kids’ bikes. At the same time, ongoing structural shifts spurred digital distribution models also garnering a share of overall revenues.
Headline
Trend
Medical Plastics Provide Innovation and Breakthroughs for the Medical Device Industry
Plastic rubber has long been one of the important raw materials for medical equipment and pharmaceutical packaging. With the vigorous development of the industry, various high-performance plastics and technologies for medical devices have emerged. In addition to traditional medical plastics, such as PP, PVC, PE, and silicone rubber, which are commonly used in the medical device industry, some high-performance materials are important materials to promote the development of the medical device industry.
Agree