The Trends of Taiwan General Equipment and Machinery Manufacturing Industry
Trend

The Trends of Taiwan General Equipment and Machinery Manufacturing Industry

In recent years, Taiwan’s "mechanical transmission equipment industry", "pumps, compressors, stopcock and valve industry", "other general equipment and machinery", and other relevant industries have increased their production indexes, mainly because of the active demands for smart automation equipment which has driven the increase in overall output.
Published: Feb 22, 2023
The Trends of Taiwan General Equipment and Machinery Manufacturing Industry

What is General Equipment and Machinery Manufacturing Industry?

The general equipment and machinery manufacturing industry is defined as: “The manufacturing of equipment widely used in prime movers, fluid transmission equipment, pumps, compressors, stopcock, valve, mechanical transmission equipment, conveying machinery equipment, office machinery equipment, pollution prevention equipment, power hand tools, etc.,” The manufacturing of general equipment and machinery required for the operation processes are also included in the general equipment and machinery manufacturing industry.

  • Prime mover manufacturing industry: Any industry engaged in prime mover manufacturing
  • Fluid transmission equipment manufacturing industry: All industries engaged in fluid transmission equipment manufacturing
  • Pump, compressor, stopcock, and valve manufacturing industry: Any industry engaged in the manufacturing of pumps, compressors, stopcock, and valve
  • Mechanical transmission equipment manufacturing industry: Any industry engaged in the manufacturing of mechanical transmission devices and their parts
  • Conveying equipment and machinery manufacturing industry: Any industry that engages in the manufacturing of goods conveying and handling equipment
  • Business equipment and machinery manufacturing industry: Any industry engaged in the manufacturing of business equipment and machinery
  • Pollution prevention and control equipment manufacturing industry: Any industry engaged in the manufacturing of pollution prevention and control equipment
  • Power hand tool manufacturing industry: Any industry engaged in power hand tool manufacturing
  • Other general equipment and machinery manufacturing: Any industry that engages in the manufacturing of other general equipment and machinery

The general equipment and machinery are products designed and developed for comprehensive mechanics, fluid flow, thermodynamics, electronics, mathematics, and material science. Due to their high versatility and wide range of uses, they are widely used in agriculture, industry, and other industries. They provide important support and a foundation for promoting industrial development.

The general equipment and machinery manufacturing industry is an important development axis of traditional industries. It has industrial characteristics such as a short product cycle, high capital intensity, high dependence on professional manpower, and large-scale workshops. The production process is processing and assembly in nature, and the products are diversified and have different fields. With high independence and professionalism, it is a discrete manufacturing industry. The industrial structure is dominated by small and medium enterprises and mostly export-oriented. The main export countries are China and the United States. Because the industrial chain is closely connected, it has a complete supply chain system of upper, middle, and downstream, forming an intricate network division of labor, which is an important industrial element in Taiwan.

In terms of the number of profit-making businesses, since 2015, the number of general equipment and machinery manufacturers in Taiwan has not changed significantly, remaining at just above 6,000. The sales of Taiwan's general equipment and machinery manufacturing industry has remained at around 300 billion yuan for the past five years, indicating that Taiwan’s domestic general equipment and machinery manufacturing industry and sales have been affected by the international market. Due to changes in trade conditions and exchange rate fluctuations in Japan, South Korea, and other countries, the overall industry performance is stable.

Taiwan’s General Equipment and Machinery Manufacturing Industry

Taiwan’s general equipment and machinery manufacturing industry is mainly dominated by small and medium-sized enterprises. Coupled with the effect of industrial clustering, it has the advantages of high production flexibility, rapid response to market demand, and excellent processing expertise. However, due to the small scale of these enterprises, the limited investment in product innovation, research and development, channel expansion, and brand building has made the industry's international competitiveness limited. This which is a dilemma that the industry needs to overcome in the future.

In Taiwan's domestic demand market, low-price orders and vicious competition often occur in the same industry. In the past, many industrial players moved overseas to set up factories and develop, which became an obstacle to the domestic demand market. However, in the past two years, benefiting from the impact of the US-China trade war on the development of Taiwanese businessmen in China, some Taiwanese businessmen have successively returned to Taiwan to invest, which has driven the overall demand for general equipment and machinery manufacturing to increase and mobilized the domestic demand market.

In terms of international competition, export sales are the main source of income for the general equipment and machinery manufacturing industry. As the international economic and trade situation changes, the pressure of international competition is deepened, which has a significant impact on overall revenue. Facing countries such as China and South Korea competing for international orders with low prices, the revenue performance of the general equipment and machinery manufacturing industry has been challenged. Exchange rate fluctuations in various countries are also one of the factors that interfere with overall revenue performance. The exchange rate depreciation measures adopted by countries such as South Korea and other countries have made the Taiwan dollar stronger than other countries' currencies, thus eliminating the advantage of price competition and affecting the profitability of the industry.

Furthermore, Taiwan's general equipment and machinery are highly dependent on the Chinese market, which easily affects the profitability of Taiwan's general equipment and machinery. In 2015, China's red supply chain emerged. General equipment and machinery such as mechanical transmission equipment that had to be imported from abroad were transferred to China's local production and supplied to the Taiwan domestic market. This impacted Taiwan's overall export performance of general equipment and machinery. In the past two years, the US-China trade war has increased the demand for Taiwan manufacturing and equipment. The U.S.-China trade war and the U.S. tariffs imposed on China have promoted an international effect, benefiting Taiwan's general equipment and machinery manufacturing industry, thereby increasing overall industrial revenue.

The COVID-19 outbreak in 2020 caused many companies in China to stop work, weakening the demand for equipment and machinery in the Chinese market, and affecting Taiwan's general equipment and machinery exports. In recent years, the Taiwan government has vigorously promoted the new Southward Policy, and Taiwanese companies have successively deployed in Southeast Asia and South Asia markets such as Vietnam, Thailand, Indonesia, and India. The expanded factories and production lines will increase the demand for purchasing general equipment and machinery, which is expected to drive the overall growth momentum and reduce the risk of Taiwan’s long-term dependence on the market.

In addition, in response to the forthcoming of the Fourth Industrial Revolution, being intelligent is an important trend in the future of industrial development. All countries have drawn up relevant development strategies, such as Germany's development of "Industry 4.0", China's promotion of "Made in China 2025," and the Taiwan government’s "Smart Manufacturing." Various industries are gradually transforming towards smart factories and production lines. The general equipment and machinery manufacturing industry is the key to industrial upgrading. For example, mechanical transmission equipment and precision machinery are key components essential for operation.

Smart manufacturing is the developing trend of future industries. Taiwan’s general equipment and machinery manufacturing industry is also facing a period of industrial transformation. If it cannot keep up with the pace of global industrial upgrading and process optimization, it will soon lose its international competitiveness and greatly reduce its international gains. In order to continue expanding international exports, maintain stable growth momentum, and strengthen core competitiveness, industries will need to expand R&D capabilities and develop their human resources. However, Taiwan’s general equipment and machinery companies are mostly small and medium-sized, and product innovation R&D, high-end Resources such as manpower, and brand marketing are generally insufficient. The government currently promotes industry through subsidies or tax reductions, encouraging small and medium-sized enterprises to develop high-value-added innovative products and fill the gap in high-level manpower to facilitate future industrial transformation and upgrading.

In the face of fierce industrial competition and drastic changes in the international market, to avoid losing advantages in the torrent of industrial competition, government resources can be allocated to enrich R&D innovation and talent cultivation.  This will inject new business capabilities into the company, leading to expanded domestic and global markets and enhanced international competitiveness.

Published by Feb 22, 2023 Source :twtrend

Further reading

You might also be interested in ...

Headline
Trend
Low-Carbon Production and Global Climate Change
Countries are actively developing heavy industries, manufacturing, and infrastructure to drive market growth, but they often pay environmental costs accordingly. Approximately 70% of global greenhouse gas emissions come from infrastructure construction and operations, such as power plants, buildings, and transportation. What will be the effect of promoting society's emphasis on low-carbon manufacturing?
Headline
Trend
Growing Factors of the Global Cloud Server Market
The cloud server market is a cloud infrastructure service that allows service providers and end-users to use virtual networks to build architectures.
Headline
Trend
Face Recognition Technology Has Improved in Digital Age
Artificial Intelligence, Machine Learning, Deep Learning, and Big Data are topics that have been frequently discussed recently. These technologies are used in many fields, including the financial industry, logistics industry, business analysis, unmanned vehicles, computer vision, natural language processing, etc., and have spread in every corner of life.
Headline
Trend
Global Market Trend of Smart Lock Industry
In recent years, smart door lock technology has developed rapidly. As an important part of smart home access control, the smart lock market will grow substantially in the next few years.
Headline
Trend
The Developments of Optical Instrument and Equipment Manufacturing Industry
The optical industry is still the mainstream product sector in consumer electronics, and there is still a lot of room for innovation. Since smartphones are equipped with optical lenses, from the rear to the front, and from single-lens to multi-lens, hardware innovation not only facilitates consumers to take photos and videos but also directly drives the vigorous development of the optical industry.
Headline
Trend
The Developments of Optoelectronic Materials and Components Manufacturing
The optoelectronic material and component manufacturing industry is a branch of the electronic component manufacturing industry. It is a high-tech and capital-intensive industry. Components manufactured with optoelectronic technology or equipment with optoelectronic components as key components are all parts of the optoelectronics industry.
Headline
Trend
What Happen to the Market Demands of Medicine and Medical after Epidemic?
Due to the increases in demands for epidemic related drugs, screening reagents, and other products driven by the epidemic, the output values of drugs, medical supplies, and other related products have been increased.
Headline
Trend
Evolvolution of Smart Logistics Equipment
Industrial automation has been a common trend in global industrial development. With the rapid development of technology and the complexity of product manufacturing, how to optimize the production efficiency of a factory through intelligent management and corresponding equipment supporting to achieve an intelligent factory and flexible manufacturing production is the latest direction in the development of the automation industry.
Headline
Trend
2023 Technology and Data Storage Trend Forecast
The innovative development of technology and storage in 2023, including multi-cloud, will tend to be localized in 2023, cloud service providers will face more transparency requirements, heat-assisted magnetic recording (HAMR) technology will become more popular, etc.
Headline
Trend
Sustainable Fashion and Digital Innovation Trends in the Textile Industry
The digitalization of the textile industry, which is highly connected with the consumer market, is the general trend. In particular, the digitalization of the supply chain such as 3D simulation technology can greatly simplify and speed up the product development and production process, and at the same time achieve the reduction of manpower, which promotes fashion and textiles. Industry players are all vigorously promoting digital transformation, and the recent digital development of the textile industry has mostly focused on issues such as sustainable fashion, circular economy, and digital innovation.
Headline
Trend
What is PCIe? The Features of PCIe 6.0 and the Specifications of PCIe 7.0
PCIe is a standard interface for connecting PC components, such as graphics cards or storage devices, and is used in a wide range of devices, from embedded systems, handheld devices, industrial applications, and servers to supercomputers, etc. For consumers, upgrading the advantage of the later PCIe is that it can support faster memory.
Headline
Trend
Is Green Building A Future Coexists with The Environment, or Is It the Evolution Direction of Contemporary Engineering?
Buildings are the largest consumers of energy in the world. Under the crisis of global warming, the development of "green buildings" is an urgent part of the energy-saving and carbon-reduction consensus of all countries. The main concept of green building is "sustainable development", and each stage needs to conform to the principle of environmental friendliness. The birth of green building is actually closely related to the environmental protection issue that the whole world is paying attention to.
Agree