cens logo

Trade War Impact Halves Machinery Exports

Jan 16, 2019 | By CENS

Taiwan's machinery equipment export figures for last year showed an accumulation of US$27.4 billion worth of exports and signaling a 7.2% annual growth rate, according to a report released by Taiwan Association of Machinery Industry (TAMI) on Monday. While the report indicates a new-high of yearly growth, however, due to trade tensions between China and the U.S., it was still just half the original forecast offered by the association last January at 15%.

TAMI Chairman Alex Ko said the overall market attitude has been on the fence due to the uncertainty prompted by the trade tensions between the world's two leading economic powerhouses, China and the U.S., leading to less orders coming in for machinery equipment.

In terms of this year's industry growth, Ko expects 2019 to continue the trend as a low-growth year but likely to see the industry warming up in the latter half. Annual export growth is forecasted between 5% to 10% only, he added.

The domestic machinery industry passed the trillion mark in 2017 in terms of gross output value, reaching NT$1.1 trillion and an annual growth rate of 11%. TAMI originally forecasted that the industry could continue its momentum and reach 10% year, however, last year's 7.2% still saw NT$80 billion-worth increase to the gross

In terms of Taiwanese dollars, last year's export figures for domestic machinery equipment equaled to NT$82.57 billion, a 6.1% annual growth. More importantly is how in December only, exports reached US$2.45 billion, signaling a 19.5% month-on-month increase and 1.6% annual growth, making it a record high in the last seventh months and exceeding industry expectations. In regards to the sudden surge, industry watchers view it as companies trying to get their goods out before the tariff regulations came into effect due to the trade war.

Aside from the trade tensions, Taiwan's industry attitude leaned towards the pessimistic due to China's investigations over anti-dumping on Taiwanese makers of vertical machining centers, Ko added. Under such a climate, he advises companies to consider quickly upgrade their business operations to smart production and smart machinery.

The U.S.-China trade war has led to a market that is less proactive, Hiwin Technologies Corp. Chairman Cho Yung-tsai said, estimating that the attitude will prevail until around mid-year and resume a steady depletion of inventories. Cho also offered that business upgrades, including moving production chains to Southeast Asia, starting from July last year, will likely to see results around late this year.

Many companies opted to take a step back when the trade war first began to boil over, Fair Friend Group Chairman Jimmy Chu said. Now that businesses are aware that the trade war will not see a concreate resolution any time soon, they have begun taking steps to move on with their strategies and investments. Similarly, he expects the market to make a rebound in the latter half of 2019.

Despite the pessimism prompted by the trade war, domestic suppliers of tool machineries and parts still reported raking in decent revenue last year, though still held onto a more conservative attitude towards this year's earnings. Hiwin is such a company that is more reserved about its forecast this year: the machine-making company reported earning NT$29.388 billion last year, a new record-high for them, but failing to hit the NT$30 billion mark as forecasted.

Other companies show similar reservations in announcing a big-win for this year: Goodway Machine Corp. raked in around NT$8.2 billion in combined revenue last year and estimates to hit NT$8.5 billion this year, while AWEA reported NT$4.8 billion in earnings last year but expects to rake in NT$5 billion this year.

TAMI will be collaborating with Chunghwa Telecom, Institute for Information Industry and Industrial Technology Research Institute Information and Communications Research Laboratories to roll out a “Machinery Cloud” cloud platform, allowing more industries to increase their competitive edge through a plethora of App platforms to employ.

news-photoEconomic Daily News report
News source: CENS


Industry In-Focus

Hand Tool Trends: Cautious but Hopeful of 2019 Outlook?</h2>

Hand Tool Trends: Cautious but Hopeful of 2019 Outlook?

Jan 29, 2019

Taiwan’s hand tools industry has always enjoyed a positive global reputation, thanks to industry members’ strive to improve and refine their products in face of an increasingly, competitive industry. In 2018, the island’s hand tool production kicked off to a slow start, as it was coming back from 2017’s fourth quarter boom season; the first quarter produced NTD$16.1 billion, a slight 2.7% decr...


Electric Cars Under Taiwanese Supply Chains Expect to See Huge Demand</h2>

Electric Cars Under Taiwanese Supply Chains Expect to See Huge Demand

Jan 16, 2019

Electric cars are expected to enter a fast-growth period this year – media reports indicated that traditional automotive heavyweight Hota Industrial Mfg has seen a huge increase of orders from one of its major clients, Tesla Inc. Reports indicate that Tesla is likely to become Hota’s biggest client this year should the rumors turn out true. Also, Ford’s electric cars is currently in its mass p...


Taiwan Firms Kicks off 2019 at ArabPlast </h2>

Taiwan Firms Kicks off 2019 at ArabPlast

Jan 10, 2019

The biannual ArabPlast 2019 is marked as the most indicative benchmark as the largest trade expo for plastics, petrochemicals and rubber industry in the MENA region. The show kicked off on Jan. 5, attracting 336 exhibitors from 27 countries. Taiwanese exhibitors also attended, led by Taiwan Association of Machinery Industry in a 34-member strong delegation, a size just shy of China and India. ...



Industry Reports

Hand Tool Trends: Cautious but Hopeful of 2019 Outlook?</h2>

Hand Tool Trends: Cautious but Hopeful of 2019 Outlook?

Jan 29, 2019

Taiwan’s hand tools industry has always enjoyed a positive global reputation, thanks to industry members’ strive to improve and refine their products in face of an increasingly, competitive industry. In 2018, the island’s hand tool production kicked off to a slow start, as it was coming back from 2017’s fourth quarter boom season; the first quarter produced NTD$16.1 billion, a slight 2.7% decr...


Electric Cars Under Taiwanese Supply Chains Expect to See Huge Demand</h2>

Electric Cars Under Taiwanese Supply Chains Expect to See Huge Demand

Jan 16, 2019

Electric cars are expected to enter a fast-growth period this year – media reports indicated that traditional automotive heavyweight Hota Industrial Mfg has seen a huge increase of orders from one of its major clients, Tesla Inc. Reports indicate that Tesla is likely to become Hota’s biggest client this year should the rumors turn out true. Also, Ford’s electric cars is currently in its mass p...


ARTC Teams Up With 18 Companies to Form Self-Driving Vehicle Union</h2>

ARTC Teams Up With 18 Companies to Form Self-Driving Vehicle Union

Dec 28, 2018

November 20 marks a huge milestone in Taiwan’s self-driving industry. The Automotive Research & Testing Center (ARTC) joined hands with 18 brands, including Acer ITS Inc., Global UniTek, Shin Wei Automotive Industrial and others of Taiwan’s top-to-bottom industrial chain to form the Autonomous Vehicle Industry Alliance. Their overall aim is to shore up support for a new, innovative operation m...



Supplier News

Antrc Industrial Corp. offers bumpers, parts, decoration strips, skid plates, radiator, radiator grill, headlights and rear lights and will be exhibiting at Automechanika Shanghai to tap into the Asian markets. (photo courtesy of Antrc Industrial Corp.)

Antrc Industrial Corp. Aims for High-End Auto Parts Industry for Asian Markets

Dec 05, 2018

Antrc Industrial Corp. focuses on manufacturing plastic parts, metal parts and other automotive parts in the aftermarket industry. The firm can roll out parts and products that match with customers’ needs and the industry pulse in this changing and competitive market. Having deep roots in the AM industry, Antrc can deliver with its complete supply chain, from designing, molding making and finally...

ANTRC INDUSTRIAL CORP.


NHC and YangPo products satisfy demands for different automobiles. (photographed by Tseng Lung-nan)

Brake Maker Nan Hoang Rides on Biz Upswing to Offer More Clients the Best

Dec 04, 2018

For more than five decades, Nan Hoang Traffic Instrument Co., Ltd (NHC) has been one of the major manufacturers of specialty vehicle friction materials in Taiwan and around the world. Chairman Austin Cheng has been carrying out their “double-arrow developing plan” for this year. In one aspect, through its private label YangPo, NHC aims to adopt a more effective marketing strategy for selling own-...

NAN HOANG TRAFFIC INSTRUMENT CO., LTD.


Intime offers high-quality performance brake calipers. (photo courtesy of Intime)

Intime's Products Sought-after by Professionals Worldwide

Dec 04, 2018

Founded in 2013, Intime Auto Parts Co., Ltd., specializes in making performance brake calipers and performance shock absorber systems. Intime takes pride of its “n&b performance” series. The firm's n&b ceramic brake pads, which are made of low metallic NAO material, is capable of functioning without damaging the brake discs. Also notable is that the brake dust can be removed easily from the al...

INTIME AUTO PARTS CO., LTD.



Insiders' Views

Megvii Technology Founder and CEO Tang Wenbin

Part 1 Megvii Technology Founder Interview: Face++ AI Facial Recognition sets eye on Asia, starting with Taiwan

Sep 07, 2018

Using facial recognition to remove security checks and recognizing criminals sounds like technological applications out of a movie, though much of it is already implemented in everyday life. Having been founded for only seven years, Megvii Technology Limited, or more commonly known for its facial recognition and AI application Face++, owns critical technology by combining both, and now, recently ...

FOXCONN TECHNOLOGY


Megvii Technology Founder Interview Part 2: Face++ AI Facial Recognition sets eye on Asia, starting with Taiwan</h2>

Megvii Technology Founder Interview Part 2: Face++ AI Facial Recognition sets eye on Asia, starting with Taiwan

Sep 07, 2018

Tang Wenbin, founder and CEO of Megvii Technology, will be visiting Taiwan next week, but accepted an overseas interview with Economic Daily News on Sept. 6. This is the second installment of the interview. Aiming for a complete application; forming a city’s “brain” Q: What are the goals and strategy for the next phase? A: When the company first started off, we had to find a way to impl...

FOXCONN TECHNOLOGY


MPN's Editor-at-large Provides Holistic, In-depth Insights into U.S. Market for Powersports</h2><p class='subtitle'>Industry veteran suggests Taiwanese suppliers establish market presence as priority</p>

MPN's Editor-at-large Provides Holistic, In-depth Insights into U.S. Market for Powersports

Industry veteran suggests Taiwanese suppliers establish market presence as priority

May 24, 2018

One of the concurrent events held during the 13th Taiwan International Motorcycle Industry Show (Motorcycle Taiwan 2018), the seminar titled “Turning New U.S. Powersports Business Opportunities” was rounded off with overwhelming acclaim from the audience as a resounding success, mostly thanks to the excellent quality of the lecturers invited, all of whom are seasoned veterans and experts at high ...



Exhibition Highlights

Taiwan Firms Kicks off 2019 at ArabPlast </h2>

Taiwan Firms Kicks off 2019 at ArabPlast

Jan 10, 2019

The biannual ArabPlast 2019 is marked as the most indicative benchmark as the largest trade expo for plastics, petrochemicals and rubber industry in the MENA region. The show kicked off on Jan. 5, attracting 336 exhibitors from 27 countries. Taiwanese exhibitors also attended, led by Taiwan Association of Machinery Industry in a 34-member strong delegation, a size just shy of China and India. ...


2018 AAPEX Post-Show Report</h2>

2018 AAPEX Post-Show Report

Dec 24, 2018

The 2018 edition of Automotive Aftermarket Products Expo (AAPEX) kicked off from Oct. 30 to Nov. 1 at Sands Expo Center; a total of 6,269 exhibitors came from 43 countries/regions, a 4% growth compared to last year’s figures, using up over 5,000 booths. Organizers estimate that over 162,000 professional buyers from approximately 135 countries visited the largest show of its kind in the North Amer...


Source: show organizer

The 19th Fastener Trade Show Suzhou - China's leading one-stop purchasing platform for fasteners, machinery and supporting products

Dec 05, 2018

As a large international fastener specialized exhibition, the 19th Fastener Trade Show Suzhou will connect the upstream and downstream of fastener manufacturing industry. Focusing on end users and building a global fastener trade platform are the highlights of the show. The 17th Fastener Trade Show Suzhou, successfully held during 26-28 October 2017, was highly praised by exhibitors and visito...