Page 36 - Taiwan Machinery 2021-09 Edition

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FEATURE TOPIC

Industries have also renewed the importance of which cumulated in the accelerated digital transformation
fortifying supply chains as global shortages worsened. The and sustainable economic trends in the past two years.
past focus on costs would gradually shift towards resiliency For instance, ISTI’s analysis of the “lighthouses of
methods, such as diversifying manufacturing hubs by manufacturing” initiative, a joint project by McKinsey
building per region versus concentration in one country. and the World Economic Forum, showed that as long as
Factories investing in automated solutions have risen as companies had a clear roadmap and suitable measures,
well, where there is more importance placed on workplace Industry 4.0 and digital transformation efforts more often
safety, or as means to fulfill labor shortages. than not, bring comparable results.

However, Hsiung noted three trends that are persistent Another widely-discussed topic is the net-zero
and growing before the COVID-19 pandemic hit last emissions and carbon border tax scheme. On July 14,
year, namely the changing population structure, ongoing the European Commission adopted a proposal for a new
advancements of technology, and the rise of environmental Carbon Border Adjustment Mechanism. Carbon prices will
awareness. With climate change accelerating, the be placed on imports of a targeted selection of products
government and consumers are becoming more aware to ensure that carbon leakage does not occur and lead
and selective of products that are green-focused and less to carbon-extensive production being pushed to other
damaging to the environment. countries.

Global versus Domestic Changes Hsiung said along with the EU’s carbon border tax,
many countries are rolling out their own net-zero schemes
We also discussed trends outside the pandemic talking to fulfill before 2050. International corporations are facing
point, namely advancements Hsiung and the ISTI have real-time pressure to decrease greenhouse gas emissions,
observed on a global and domestic scale. prompting the development and implementation of
necessary smart technologies to increase the efficiency of
In terms of global trends, operational adjustments to resources.
the global and regional supply changes will move from
globalization, China, to a more local scale. Companies On the other hand, the U.S.-China trade war and also
around the world are already moving towards not just the pandemic had accelerated Taiwanese businesses from
prioritizing costs, but also maintaining product consistency, abroad to return to the island. Hsiung said the phenomenon
production, and operational flexibility. is primarily fueled by returning machinery factories, which
were reported to be more willing to invest in improving
Technological advancement in the manufacturing their overall production capacity with smart technology and
industrial industry has become crucial for a company’s automation due to Taiwan’s aging population, low birth rate,
success, Hsiung said. Industry 4.0 has had a decade to and low willingness to work in the industry.
develop, regardless of successful or failed experiments,

Taiwan Machinery 2021 September