Page 29 - Taiwan Machinery 2021-09 Edition

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INDUSTRY REPORT

Machinery manufacturers are also feeling the squeeze years, specifically in the central and southern parts of
from rising prices, ranging from essential raw materials the island, and expanded into parts of northern Taiwan.
such as steel and copper to cardboard used to deliver That included Taiwan’s technology hub, concentrating the
the products, which reportedly rose at least 30%. Labor world’s semiconductor production. Electricity shortages
shortages and rising shipping prices caused by container had also hit the island as well, largely due to increased
shortages due to longer docking time at various ports power consumption weeks earlier than usual ahead of the
around the world were also factors as well. summer months due to warmer weather.

Wei pointed out that many machine tool manufacturers Referring to Taiwan Power Company statistics,
usually see orders coming in up to Q4, therefore he expects DIGITIMES Research cited resource shortages as a prime
the sector’s export value and industry value to grow a incentive to streamline factory production efficiency. At
yearly 30%. However, the aforementioned factors have the helm of this technology, companies could employ AI
led companies to prioritize quality orders over quantity. solutions to help factories save 8~17% of electricity and
He implored government intervention to stem profit losses push down costs on water waste treatment by 5~10%.
and help Taiwanese machinery suppliers pull through the
recession.Other examples of rising costs could come in the On the other hand, streamlining factory technologies
future. Export-focused manufacturers should consider the could prepare companies ahead of events, situations
ramifications of the European Union’s proposal of carbon that require faster responses and solutions. In an article
taxes on certain industrial imports by 2023. published earlier this year, McKinsey & Company
highlighted how the technological advancements
Tech Upgrades Crucial in Light of Climate implemented through Industry 4.0 were put to the test
Change amid the global supply chain disruption and COVID-19
pandemic-fueled lockdowns.
Another factor that should spur companies into
embracing more technological upgrades to existing According to the article, 94% of surveyed companies
production lines is how extreme weather caused by said that implementing Industry 4.0 had helped them
climate change is pressuring existing infrastructure. For keep operations running during the pandemic, while 56%
instance, aside from the local COVID-19 outbreak, Taiwan reported that the technologies had a crucial role in their
had been in the grips of the worst drought in the past 56 crisis responses. This signaled companies with more

Taiwan Machinery 2021 September