Page 44 - Taiwan Hand Tools-2020-01 Edition-CENS.com

40

INDUSTRY REPORT

Hand tools are widely diverse and indispensable in daily lives.
Background in Taiwan’s Hand Tool Industry

Taiwan’s Hand Tool Industry

Outlook in 2020

Metal Industries Research & Development Centre

aiwan’s hand tool industry rose from the growing Clusters Synergize Industry’s Capacity
Tdemand during the Vietnam War in 1960 and its exports
were ranked fi rst in the world 5 years in a row from 1998 The hand tool manufacturers are mainly centered in
to 2002. The exports of hand tools were fi rst surpassed by Taichung and Changhua, mostly small-sized enterprises
China in 2003 and later by German in 2008. Today, it ranks with 90 percent factories that boast under 50 employees
third globally in the export value. The industry supporting peripheral systems are
comprehensive, including molding, heat treatment, forging,
Having a complete supply chain from downstream electroplating, and assembly. The manufacturing process is
to upstream in Taiwan’s hand tool industrial cluster fast and fl exible, highlighting the characteristics of industrial
allows manufacturers to rely on each other and maintain clustering.
its competitiveness simultaneously, striving for quality
products, which have also garnered great attention in the The industry benefits from clustering, as hand tools
world by its quality products and the state-of-art technique. manufacturing processes involve equipment from forging to
Hand tool industry created over NTD$100 billion annually, surface treatment. Also, the production and manufacturing
earning Taiwan the moniker of “The Hand Tools Kingdom.” are based on traditional machinery and involved with
different techniques of secondary processing for metals.
Amid the fi erce competition in international markets, the Another factor is the vast diversity of products, thus most
Taiwanese manufacturing industry was generally confronted manufacturers are not able to offer a full manufacturing
with challenges that put them in a hard place. Markets like process. Many manufacturing parts need to be outsourced
Europe, the US, and Japan, which had advantages like to professional manufacturers, making production schedule
being closer to the industry market, and boasting Industry flexible and fulfill the need for high-mix low-volume
4.0 technology. On the other hand, Taiwanese suppliers production or even one-piece delivery.
also had to deal with emerging countries like China and
India, which could use their low-cost advantages to
undercut Taiwan.

Taiwan Hand tools 2020 Issue