Page 40 - Taiwan Hand Tools - 2021-03 Edition

38

INDUSTRY TRENDS

and mainland China, respectively, indicating that both traditional channels for businesses like attending global
markets continue to see significant demand for hand tools hardware expos have dramatically decreased amid the
in an otherwise unfavorable pandemic-riddled situation. pandemic outbreak. While Taiwan could resume business
as usual, many notable expos were either canceled or
The insight is backed up by the Economic Ministry postponed to 2021. Many expos opted for a hybrid method
Industrial Development Bureau Metal and Mechanical in Taiwan by concentrating on offline events for domestic
Industries Division Chief Chang Shang-chun, who outlined businesses and directing outbound focus through online
that many businesses saw an extreme disparity between channels. Many foreign media outlets have noted the
the first half of 2020 and the latter half. Chang said they change, observing that even in the future, without global
expect to see stable growth in the industry going into travel restrictions and the threat of a pandemic looming
2021, thanks to the DIY culture in Taiwan’s major export overhead, the hybrid model would be here to stay.
destinations in Europe and the U.S.

TechNavio’s report indicated that the global hand tool
industry would reach USD$125.5 billion in scale by 2022.
The report analyzed that the U.S. traditionally catered to
professional users of hand tools. However, with the general
public getting into home renovation and the growing
popularity of the DIY culture, America now tops the world
in terms of the global DIY market, followed by China and
Germany.
The Urgency for Digital Transformation

Taiwan’s strong pandemic response has helped elevate
its global standing and stabilize its economy, making it one
of the few countries boasting positive growth. However, Intrinsically Linked to Industries
the relative success in Taiwan’s model could serve as a
double-edged sword. The domestic industry must continue Much like the global production chain, the hand tools
to look ahead, as businesses abroad have accelerated industry is closely linked to other sectors. As of writing,
digital transformation as an absolute necessity amid even if the worldwide distribution of the COVID-19 vaccine
lockdowns and quarantines. The most straightforward is underway, the global pandemic situation has led to
digital transformation application in traditional industries uncertainty, stunting global economic growth. For Taiwan,
such as hardware and hand tools would be employing however, things look more optimistic. Taiwan Institute
digital technologies to improve production efficiency. of Economic Research’s (TIER) latest report issued late
December pointed out that in Taiwan, thanks to stabilizing
For example, Machan International is among global oil prices and growing global demand, traditional
the domestic hand tool firms that had an early start, industry exports, production, and outbound orders have
successfully incorporating smart manufacturing capabilities increased significantly. Compared to the general outlook
into its operations, and begun to reap benefits from it. among traditional industry companies polled in November,
Increasing automation and smart production have enabled the firms report an optimistic December and first-half of
Machan to accelerate its manufacturing, reduce costs, 2021 compared to enterprises’ general view. For example,
and introduce information integration and collection into its the electronics industry enjoyed a considerable growth
operations. As they say, “time is money,” the same can be of demand, buoying spirits in the electronics machinery
said for data. industry.

The pandemic has also forced traditional industries to In terms of outbound trade, even if the peak for
rely less on face-to-face meetings, attendance of global electronics-related products is ebbing, industries are
expos, and take things online. For example, TAITRA hosted buoyed by new emerging technologies and remote
online procurement sessions for hand tool firms with applications’ popularization. This has led to outbound
international buyers, which attracted 138 buyers from 36 growth in electronic parts, communications, and visual-
countries within a month of registration. At least 60% of the audio products, still boasting double-digit growth. With
registered buyers were from Europe, the U.S., Japan, and upward-trending global oil prices, traditional industries are
China. also seeing a favorable resurgence. Aside from textiles
and minerals that continue to see negative growth, other
As Taiwan’s hand tool firms rely on outbound venues, traditional exports maintain positive expansion, rounding

Taiwan Hand Tools 2021 Issue