Hardware & Fastener Components Magazine No.54

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RLD NEWS Hardware World News >>

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HARD 五金產業新聞

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compiled by Fastener World

Industry Development 俄烏衝突下歐洲鋼鐵價格飆漲22%，中鋼擬跟進

Russia-Ukraine Conflict Spurs Steel Price up 22% and Taiwan CSC Also Intends to up the Price The impact of the Russia-Ukraine war falls on the two major steel manufacturing countries. The European steel price surged 22% to 1,160 euros (USD 1,257) per ton, a new high over the last 8 months.

ArcelorMittal and Metinvest Holding, two steelmakers in Ukraine, are forced to stop production because of the war. Ukraine is one of the top 5 steel manufacturing countries exporting to the EU. A halt in Ukraine's supply will further tense up the steel market.

On another note, the Russian steelmakers are also having a difficult time exporting to the EU. After a sanction laid on the Russian metal mogul Alexei Mordashov, his steel company Severstal PJSC stopped sales to Europe which is his largest market for export.

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The heightened metal price as a result of the war could bring greater harm to manufacturers and constructors who have been through the record-breaking metal price hike last year. If the rise in energy price leads to further reduction in production from European steelmakers, it will worsen supply to the market.

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On Taiwanese domestic wire rod price for Q2, Taiwan CSC said it is collecting global intelligence on wire rod price trend. The company will evaluate inventory status across the market, downstream clients' competitiveness, price condition and other factors to mildly raise the price.

中鋼公布2022年第2季盤價

Taiwan CSC Announces Price Adjustments for Q2 2022 On March 15th, Taiwan’s China Steel Corporation (CSC) announced the price adjustments for certain steel products for the second quarter of 2022. In terms of certain products related to the fastener industry, the price of wire rod (low carbon/mediumto-high carbon/cold forged/low alloy) has been increased by NT$2,200 per metric ton and the price of automotive materials has been increased by NT$ 2,400 per metric ton. The average price adjustment margin for all steel products is about 5.83%.

俄烏衝突可能使今年全球汽車銷量下降2%

Russia-Ukraine Conflict Could Bring down Global Automotive Sales by 2% Wall Street Journal reports, according to S&P Global, the Russian-Ukraine war worsens the disruption of global supply chain and could make the global sales of light vehicles drop 2%. S&P Global previously predicted the automotive sales of 2022 would grow 4% to 6%. It says the war may affect the European market because Europe relies on supply of materials, natural gas and petroleum.

S&P Global states the price rise will not affect the transition to electric vehicles, and points out the possible shortage of palladium as well as a possible price increase in steel, copper, aluminum and nickel, which bring critical risks to the automotive industry this year.

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Hardware World News >> 日本對俄烏鋼鐵螺栓出口恐因當地日系車廠停產受影響

Japan's Iron and Steel Bolt Export to Russia and Ukraine Could be Affected by Halted Production of Local Japanese Carmakers On the Russia-Ukraine war, KINSAN Fastener News (Japan) wrote, the pandemic had the world come to a halt and then the war outbreak put the world in a state of uncertainty. KINSAN continued, carmakers decided to raise the price of supplied materials in February and therefore the steel price would continue to rise as it did last year. Additionally, Japan is highly dependent on overseas resources and its industry policies and production is highly subject to external factors, making itself inevitably prone to the political shockwave from the Ukraine crisis.

KINSAN analyzed, Japan's total fastener import from Ukraine and Russia in 2021 was almost none according to Ministry of Finance (Japan), but the total export to Russia exceeded 4,000 tons and the export to Ukraine was under 1 ton.

It means Japan's fastener export to Ukraine and Russia accounts for 1% of Japanese fasteners going to the world. Among that 1% are iron and steel bolts taking the largest portion of 3,000 tons. These exported fasteners generally go to the automotive industry, but could be affected by the halted production of local Japanese carmakers due to the war.

Taiwan in comparison exported 15,934 tons of fasteners to Russia in 2021, which accounted for 0.99% of those going to the world, which is also 4 times more than Japan's export to Russia.

Taiwan exported 1,780 tons (0.11%) of fasteners to Ukraine, far more than Japan did. In export values, Taiwan exported USD 38.24 million (0.72%) worth of fasteners to Russia and a worth of USD 4.06 million (0.07%) to Ukraine. Although Taiwan and Japan both have 1% in fastener export to Ukraine and Russia, Taiwan has far more volume than Japan does and faces a greater risk.

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印度宣布不延長對中線材反傾銷措施

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India Forgoes Chinese Wire Rod Anti-dumping Duty Extension

台灣對俄三大出口貨品面臨衝擊

3 Categories of Taiwanese Merchandise May Bear the Brunt in Sanctions Against Russia The Russia-Ukraine War is followed by sanctions imposed from the U.S., UK, and the EU. If Taiwan restricts exports to Russia, its top 3 merchandise including information and communication products, machines and basic metal products are likely to be affected. In imports, natural gas, coal, steel, copper and other basic metals may bear the brunt.

According to the export statistics from the Ministry of Finance (Taiwan), Taiwan exported USD 1.02 billion-1.32 billion worth of products to Russia annually in the past 3 years. In terms of export in 2021, Taiwan exported around USD 38.49 billion worth of products to Europe (with Russia accounting for around USD 1.32 billion). By estimate, restrictions on the export to Russia have limited impact on Taiwan's total export.

Regarding the merchandise Taiwan exported to Russia in 2021, information/communication products and audio-video products were the top category accounting for USD 374 million, followed by machines taking the second place at USD 255 million, and basic metals third at USD 178 million which were mainly stainless steel products (USD 41 million) as well as stainless screws and bolts (USD 38 million). In terms of import, Taiwan imported USD 5 billion worth of merchandise from Russia in 2021, 60% of which were natural gas and coal, and 30% of which were basic metals such as steel and copper.

T h e I nd ia n gove r n m e nt h a s d e c id e d t o r e je ct t h e recommendation to impose a definitive anti-dumping duty on imports of wire rod of alloy or non-alloy steel originating in or exported from China. The Directorate General of Trade Remedies (DGTR) previously recommended extending the antidumping measures for five further years, Kallanish notes.

“In exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the Customs Tariff Act, read with rules 18 and 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, the Central Government, after considering the aforesaid final findings of the designated authority, has decided not to accept the aforesaid recommendations,” says India’s Finance Ministry.

The products under consideration were bars and rods, hotrolled, in irregularly wound coils of iron or non-alloy steel or alloy steel, commonly known as wire rod. The products are used

in automotive components, welding electrodes, springs, wire mesh, fasteners, nails, railway sleepers, and binding wires.

DGTR had recommended an anti-dumping rate equal to the difference between the landed value of the imports and $546/tonne. If the landed value of imports was more than $546/t, then no duties would be applicable.

Hardware World News >> 泰國終止對中國低碳盤元收反傾銷稅

Thailand Terminates Anti-dumping Tax on Low Carbon Wire Rods Originated in China Thailand launched an investigation on January 9 in 2015 on low carbon wire rods originated in China, and then imposed an anti-dumping tax of 12.81%-31.15% starting March 10, 2016.

On March 9, 2021, Thailand launched the first sunset review investigation on China's low carbon wire rods with a diameter greater than or equal to 16 mm and less than 0.29% of carbon content. The involved product codes are: 7213.9120.000, 7213.9190.010, 7213.9190.011, 7213.9190.012, 7213.9190.013, 7213.9190.033, 7213.9190.034, 7213.9190.035, 7213.9190.090, 7213.9920.000, 7213.9990.000, 7227.9000.021, 7227.9000.022, 7227.9000.023, 7227.9000.024, 7227.9000.030, 7227.9000.031, 7227.9000.032, 7227.9000.033, 7227.9000.034, 7227.9000.035, 7227.9000.039, 7227.9000.090.

March 11, 2022, Thailand announced the termination of the anti-dumping tax on low carbon wire rods originated in China.

印度當地扣件協會建議會員企業勿出口至俄烏

Indian Local Fastener Associations Advise Members Not to Export to Russia and Ukraine Amid the Russia-Ukraine conflict, Indian fastener associations have advised their members in early March, who are exporters of various goods to both these countries, to halt the shipment of goods until the situation normalizes. Businessmen say there are chances of their payments being held up and there is high risk of their shipments not reaching the destinations.

Rajkumar Singla, president of Fasteners’ Suppliers’ Association of Ludhiana, said, “We held a meeting of our association and discussed the problems being faced by our industry. We have also decided that our members exporting to Russia and Ukraine must halt the trade till the conflict ends. The decision was taken after analyzing the current situation, which may also hit the cargo movement.”

Narinder Bhamra, president of Fasteners’ Manufacturers’ Association of India, said “The war will cost the exporters doing business with Russia and Ukraine and their neighbouring countries. Already there are reports of payments of several exporters getting stuck with the buyers there, as they have sought more time due to the war. Now with tension escalating, we must refrain from doing business with them. Our association too has advised our members against dispatching new orders till the situation normalizes.”

According to Atul Sethi, a fastener manufacturer, “Russia and Ukraine are big markets for us and several factories from Ludhiana export their goods to these countries. But due to the war, it is not safe to do business with them and even with their neighboring countries for which Russia and Ukraine are the transit points. We are following a wait-and-watch approach.”

渡輪業者損失380萬美金，竟因一支螺栓未拴緊

Hardware & Fastener Components - no.54/2022

Ferry Company Loses USD 3.8 Million for an Insufficiently Torqued Bolt

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An engine fire inside the Washington state ferry Wenatchee was caused by an insufficiently torqued bolt, which set off a chain reaction of broken parts and overheating, said a National Transportation Safety Board report released March 15, 2022.

There were no injuries during the incident, which happened on a test sailing after a series of repairs. The 13-member ferry crew extinguished the fire within two to three minutes.

However, the fire caused $3.8 million in damage and kept the Wenatchee out of service for nine months.

The summary report says an oiler discovered white smoke in an engine room while the ferry was cruising at full power. Another crew member near the control panels saw fire, smoke and debris flying everywhere. Afterward, engineers found a large rod and piston strewn on the steel engine-room floor. Investigations found two broken bolts and another unfastened while the engine was running. They were supposed to be torqued to 75 footpounds.

By magnifying the grooves, engineers confirmed the "backed off" or unfastened nut hadn't been tightened enough, which led to other parts misaligning, then a loss of lubricating oil. Hot gases spewed into the engine room and exploded.

Ferry officials have added engine room cameras, and will require secondary inspections of critical engine work including bolts.

The Wenatchee returned to service in late January and serves the Bainbridge Island-Seattle route.

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Hardware World News >>

Companies Development MacLean-Fogg發表Threadstrong®車用輪胎扣件系列

MacLean-Fogg Announces Launch of Threadstrong® Line of Made-In-USA Aftermarket Wheel Fasteners MacLean-Fogg Component Solutions (MFCS), a leading supplier of original equipment automotive components, announces the launch of the Threadstrong® brand.

“We are well known as the leading OEM supplier in North America for high performance, decorative wheel fasteners. It’s always been frustrating to us to see the aftermarket flooded with inferior, low quality and potentially dangerous replacement wheel fasteners of unknown origin. So, we decided to do something about it.” Said Brad Southwood, MFCS Vice President of Sales and Marketing.

“No team is more knowledgeable about how to engineer and manufacture safe and durable wheel fasteners than the MacLean-Fogg team.

We’ve been the leading supplier to many of the world’s largest automakers for over 40 years. We want the aftermarket consumers to know that when they buy a Threadstrong® wheel fastener, they can trust it was made in the U.S.A to all of the needed safety specifications.” Said Rob Whitney, President of the MFCS Fastener Division.

“A lot goes into wheel fasteners that the general consumer probably doesn’t think about. Beyond just obvious considerations like material strength, corrosion resistance, and durability, there is a tremendous amount of engineering and quality control that goes into controlling the friction of the fastener’s load bearing surface against the wheel. Too much friction and the wheel fastener will torque down while still being loose against the wheel, creating a potentially unsafe condition. Too little friction and the act of torqueing the nut down can overstretch the stud creating a wheel stud failure. Can you trust that the replacement nuts you see online or in retail stores have the proper friction and coatings needed to assure a safe clamp? Our benchmark testing shows significant inconsistencies. What we do know is that Threadstrong® wheel fasteners will be safe to install and will work in the stated application.” Said Mark Raves, Director of Wheel Fastener Engineering for MFCS.

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Every Threadstrong® aftermarket wheel fastener is engineered and built in MFCS factories in Michigan and Illinois. The Threadstrong® brand is launching with a limited number of applications in both stainless steel and black appearance with new applications to be added soon.

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Hardware World News >> 德國fischer發表全新 FGW 90F氣動緊固工具

New fischer FGW 90F Gas-actuated Fastening Tool The new fischer FGW 90F fastening tool allows nails to be processed quickly, safely and easily in wood. The gas-actuated fastening tool can set up to three fastenings per second, more than 1,100 fastenings per fuel cell and 8,000 fastenings per battery charge. The FGW 90F thereby makes working in wood economical and efficient.

Be it roofing battens, wood frame construction or facade cladding – wood is a highly popular building material, including in multi-storey residential and commercial construction, not to mention in classic applications such as floor surfacing, decking boards or ceiling cladding. With various types of wood and wood materials, users require a reliable tool that allows them to cover every kind of application while creating quick and safe fastenings.

The fischer FGW 90F gas-actuated fastening tool fulfils these requirements. With a weight of 3.8 kilogrammes and compact dimensions (390 mm length x 108 mm width x 381 mm height), the tool is comfortable to grip. Users can quickly commence any fastening tasks, as the pressure loaded magazine can be quickly and easily loaded with up to 60 nails. A safety clip prevents nails from falling out, making it safe to reinsert them. Thanks to the high-grip nose and a setting energy of 90 joules, nails can be set at precisely the right location and in every direction, which also makes overhead installation easy to do.

Böllhoff 發表電動車電池模組鎖固 系統RIVKLE®

Böllhoff has developed the RIVKLE® Seal Ring range of blind rivet nuts and studs with integrated and captive sealing function for battery pack applications.

The resulting assembly is robust and fluid tight; the entire range meets the most stringent sealing quality requirements (ISO 20653 IPX7) and automotive quality requirements.

In combination with Böllhoff’s automatic setting tools, t he R I VK LE ® solution is optimised in terms of cost and speed of installation, with an unprecedented level of validation of the quality of the implemented product (process control).

This global approach also allows optimal machine availability, thanks to both a high autonomy of the machines (automatic function “2nd try” with replacement of the RIVKLE®) and reduced f requencies and periods of maintenance (optimized TCO).

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RIVKLE® Solutions for Electric Vehicle Battery Packs

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Hardware World News >>

Würth Industry North America繼續成為美國扣 件訓練協會2022永續贊助商

Trex®萬向扣件安裝工具改善木板安裝和使用壽命

Trex® Universal Fastener Installation Tool Improves Deck Installation and Longevity More than a decade ago, Trex expanded its Hideaway® Hidden Fastening System with the introduction of the Universal Fastener, which can be used with most major competitive deck boards. This product was designed in conjunction with contractor feedback to deliver a fast and easy installation while eliminating the excess waste of carrying several product lines’ hidden fasteners. To further help building professionals optimize both cost and time efficiency, Trex has introduced the new Trex® Universal Fastener Installation Tool, an innovative accessory designed to increase application ease and accuracy, while reducing installation time by up to 50%.

Created with both professionals and DIYers in mind, this tool cuts installation time in half by allowing the installer to fully actuate the fastener in one easy step. Utilizing a nose cone to make sure the bit hits the fastener head, as well as a unique drive angle, the installer can now fully tighten each clip while easily sliding the next board into place.

Lightweight and durable, the tool also features a rotatable handle that allows for both pushing and pulling from a variety of angles, along with a handy bit holder on the underside.

The new Trex tool delivers a simple installation process that allows for a clean, superior, fastener-free deck surface. The Universal Fastener also makes it faster and easier to replace damaged boards – even those in the middle of a deck – resulting in less time spent on callbacks.

Würth Industry North America Renews Exclusive Partnership with Fastener Training Institute as 2022 Sustaining Sponsor Würth Industry North America is pleased to announce the renewal of their exclusive partnership with the Fastener Training Institute as their 2022 Sustaining Sponsor. This sponsorship funds existing training programs, develops new industry-leading content, and supports FTI’s virtual training platform. The generous support of Würth will be acknowledged throughout the year at FTI classes, webinars, and industry events.

Würth Industry North America has been the Sustaining Sponsor of the Fastener Training Institute since 2019.

Embedded in their philosophy and values, Würth believes education and lifelong learning inspire visionary thinking that transforms industries. They deliver on their commitment to supporting education, certification, and professional development through their partnerships with trusted industry education organizations.

“Investing in education is critical to strengthening the fastener industry and fostering innovation—it is a key element of advancing our technologies, improving the ways we serve our customers, and navigating challenging times,” said Dan Hill, chief executive officer for Würth Industry North America, “We are proud to invest in the present and future of the fastener industry by partnering with Fastener Training Institute for the fourth consecutive year.”

TR Fastenings發表壓縮控制扣件系列

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TR Fastenings Launches a Range of Compression Limiters

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As the speed of technology and trends in consumer behaviour accelerates, companies around the world are evolving quickly and TR Fastenings is no exception. TR’s latest product launch of Compression Limiters has been developed to meet the growing global demand from multi-sector manufacturers developing products using plastics, particularly in the EV space.

Compression Limiters reduce the stress that’s generated by traditional threaded fasteners. Demand has mainly been driven by the automotive sector, and applications in the energy and general industrial sectors where high load bearing plastic components are used and have also contributed to the surge in worldwide demand.

Compression Limiters are used extensively in composites and plastic mouldings as through holes help reduce the stress generated by conventional fasteners. These non-threaded inserts are commonly used in applications where a compressive load is applied to a plastic assembly to prevent the integrity of the plastic being compromised.

These products are used extensively in electric vehicles and the battery housings. As technological advances continue, so does the need to continually develop the primary components that make up an electric vehicle. Newly created giga factories and battery housings manufacturers in Europe, Asia and North America will be looking to include these products in many upcoming automotive research and development projects and with a global presence, TR Fastenings is ideally positioned to meet this demand, whilst also providing technical and design assistance.

TR’s experience over the last few years is that many of these are designed in specials and required in high volume. There are a number of different types and as a guide the TR’s Compression Limiter range consists of symmetrical, flanged, split seam and oval manufactured from steel, stainless, brass and aluminium.

Hardware World News >>

日本Sanko Techno 推出智慧化膨脹錨栓

Japanese Sanko Techno Rolls out Smart Expansion Anchor

日本Yamahiro公司導入共同開發的物聯網系統

Japanese Yamahiro Adopts Co-developed IoT System Yamahiro is a construction fastener manufacturer and developer headquartered in Osaka. The company decided to introduce an IoT system to improve productivity. The practical experience they shared can shed a light on the efficacy from upgrading to smart factory and the tasks to heed.

At first they purchased an IoT system worth a million Japanese dollars and tried connecting it to 3 machines, but they were not able to get the specific data they wanted. They thought they had their own technical people, so they headed on to co-develop their own IoT system.

They had the technical personnel collect data from machines, and had another person use the Amazon Web Services platform (a cloudcomputing platform established by Amazon).

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Using IoT, the first change they observed is the ability to measure productivity. By “visualizing data”, they discovered they had less than 50% of total machine utilization. Knowing why and for how long the machines had stopped, they were able to improve to 85% and increase productivity by 170%. They used to have 2 shifts till 9 pm. Now they can achieve the same level of productivity on just the 1st shift till 5 pm.

Besides shortening work time, they saved electricity bills, shortened 30 minutes from taking inventory, and discovered other unforeseen problems.

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The second change is “data sharing”. Everyone including the employees and owner with a computer can see the data and give suggestions on the spot. If the owner sees a machine not operating, he will give orders to onsite personnel right away. Therefore, they solved the bottleneck in the fastener heading process.

The third change is “prolonging dies life”. They started with dies requiring frequent changes, and were able to go from one hour a time to ten hours a time for changing the dies, saving work time.

Right now their most critical task is to cultivate analytic talents.

It is very time-consuming to analyze data; and therefore, requires experienced people to take charge. The other task is to reduce errors by onsite personnel who collect and input machine data which also requires management by a dedicated person. Their next step is to apply IoT to threading, forming and packaging to save labor and freights, through which they can form a distribution unit in the company to maintain profit margin and tackle the challenges from the pandemic.

The workforce saved from the production line can be assigned to the work with higher added values.

After Sanko Techno launched sales of its expansion anchors back in October 2020, customers had hoped for an expansion anchor that can be used in tunnel construction. Therefore, the company developed “Smart Expansion Anchor”. With a shorter embedding length, the new anchor expands and cuts the wall as it is drilled into the hole with a small hammer drill, so the operator can quickly complete the work even when the anchor is drilled upwards. Using anti-loosening nut with the anchor can prevent deterioration in the gap between the anchor and the hole.

“Smart Expansion Anchor” is available in 3 sizes including M8, M10 and M12, and in two material types including steel and stainless steel. It launched sales on March 1, and is expected to bring a total revenue of JPY 15 million this year.

日本Toneji推出T-LSB木鋼混合結構建築用扣件

Japanese Toneji Rolls out T-SLB Fasteners for Wood-steel Hybrid Buildings T-LSB (Lug Screw Bolt) is a type of fastener for fastening steel plates and cross-laminated timber (CLT). It is designed to simplify construction process and reduce costs, delivering great performance on wood-steel hybrid buildings.

The features of T-LSB are: •

Unlike the previous type of LSB fastener, T-LSB doesn’t include a hexagonal head and doesn’t require counterboring the wood.

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Without counterboring, there is no need to fill in epoxy resin.

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The operator can use designated bolts to drive in with ease.

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Simplified construction process, shortened work time.

Hardware World News >>

Mergers & Acquisitions 日本日東精工取得KM精工株式會社所有股權

Japanese Nitto Seiko Acquires All Shares of KM Seiko

Birmingham Fastener宣布 併購K-T Bolt

Birmingham Fastener Announces K-T Bolt Acquisition

A professional public manufacturer of auto screw driving machines, Nitto Seiko signed an agreement with KM Seiko to acquire all shares of KM Seiko. With a revenue of JPY 3.2 billion, KM Seiko designs, manufactures and sells bolts, nuts, cold headed and cold formed parts to the automotive and construction industries in Japan and overseas. After the share transfer, KM Seiko becomes a subsidiary under Nitto Seiko.

Nitto Seiko signed a share transfer agreement with KM Seiko as part of the “NITTOSEIKO Mission “G” tactic, expecting to utilize respective distribution routes, product development and production to create a synergy and provide automotive and construction customers with solutions.

K-T Bolt Manufacturing provides custom fabr icat ion, close d-d ie forging, in-house heat treating, and elect ropolishing. With this partnership, Birmingham Fastener and its sister companies can expand product and service offerings to its customers. Randy Peck will stay on as President of K-T Bolt and join the leadership team at Birmingham fastener, offering his expertise in the field.

“T he f ut u re of ou r compa ny is now and always will be about growth and productive changes.

At the same time, we must hold fast to our core values like worldclass service, accountability, and a commitment to excellence that we’ve had since my father founded this company in 1980” says Brad Tinney, President and CEO of Birmingham Fastener. “This partnership allows us to further expand our footprint and strengthen our commitment to American fastener manufacturing.”

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Birmingham Fastener is excited to announce the acquisition of K-T Bolt Manufacturing, Inc. based in Katy, Texas. With over 100 years of combined fastener production, this acquisition strengthens Birmingham Fastener’s product offer ing and ma nu fa ct u r i ng d iversit y. Most impor tantly, it allows it to add teammates to its world-class staff and will yield long-term benefits for its customers. In doing this, the level of service it can offer to its customers will be increased.

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Cover Story >>

CHINMORE INDUSTRY

Expands Production and Overseas Shares in Electronic Components 銷量衝高三成！ 竣茂工業增產， 全力擴大海外電子零件市場

Sales up 30%!

by Dean Tseng, Fastener World

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ne of the most reputable Taiwanese CNC precision machining companies is Chinmore Industry rising from the electronic communication and automotive communication industries. In its 25 years of history, the company manufactures and supplies high-frequency antennas, as well as various precision parts made of iron, copper, steel, stainless steel, and PTFE. The company can process parts of diameters ranging from Ø1 to Ø42mm, and lengths from 0.5 to 150mm, within 0.005mm tolerance. In addition to domestic orders, it also takes OEM and ODM orders from major high-end markets in the U.S., Europe and Japan.

Using High-End Japanese Machine Tools; Guaranteed Quality and High Customer Loyalty

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Chinmore Industry believes reputation is founded on quality. Its manufacturing plant uses composite CNC machine tools from Nomura (Japan) for better and unified management of parts, higher precision and stable quality. It utilizes and harnesses Japanese craftsmanship manifesting high precision, stable production, short lead time and high customizability to satisfy clients and swiftly cope with rush orders.

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Clients will provide drawings, sizes and requests for special specifications for engineers and technicians to see if the manufacture is possible, and the company will provide suggestions for production. Samples will be provided to clients for confirmation before mass-producing and this fulfills tailored service. The company is certified to CE, RoHS, ISO 9001:2015 and ISO 14001:2015 and uses automatic 3D projectors for inspection. Quality assurance is carried on as per client’s standards, and the result is a host of loyal and repeat clients.

Actively Attending Exhibitions to Expand U.S and Europe Market Shares in High Market Outlook Besides capabilities in design, manufacture and export, the company has a one-stop vertically integrated production line. It can supply products in separate rounds to help them reduce inventory, providing flexible service in accordance with clients’ changing needs. Since last year, the company’s sales from orders increased as high as 30%. With many countries gradually opening up their markets, Chinmore industry has begun exhibiting overseas for full-on expansion in the U.S. and Europe. Currently in Europe, Chinmore’s footprints have reached Spain, Germany, Czech Republic among others.

President Tim Wang said lately the company has purchased 3 manufacturing machines. The increased capacity is enough to cope with precision parts demand in the U.S. and Europe. “We will continue to develop dies and add industry-leading advanced machines, so that our clients are reassured that if they let us handle for them, they are trusting the expert!”

Contact: Mandy Wang Email: mandy@chinmore.com.tw

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Fastening Tools Suppliers >> 磯慶實業 Ratchet-KH3200S 狹小空間鎖固新選擇

A-KRAFT TOOLS

MANUFACTURING CO., LTD.

Ratchet-KH3200S New Choice for Narrow Space Fastening

by Gang Hao Chang, Vice Editor-in-Chief of Fastener World

120 Ratchet Teeth + Light Weight

The problem of traditional ratchet wrenches being difficult for fastening operation in narrow space has always troubled many users. Not to mention the gradual Suitable for Narrow Space Fastening electronization and automation developed in mechanicalThe operating angle of the traditional ratchet is generally 15 degrees related industries, as well as the design of electric and the tool often needs more space for operation. To maximize the vehicles, the development makes the space for effectiveness of the actual operation of the product, Ratchet-KH3200S has follow-up maintenance and repairs of certain ratchet teeth up to 120, which can greatly reduce the space required for the mechanisms more limited. Thus, A-KR AFT operation of the ratchet structure and decrease the operating angle to 3 degrees.

Tools Manufacturing Co., Ltd. developed the Users can easily complete the fastening operation even when they are in narrow Ratchet-KH3200S ratchet wrench. Not only space.

Besides, A-KRAFT Tools R&D teams also reduced the weight of products to can it fully meet the growing demands of make more efficient use of space.

They reduced the width and thickness of the ratchet the professional tool market, but also wrench by 30% to meet customers' needs for lightweight tools. Currently, there are four completely solves the problems that specifications available, which include “1/4” DR., 3/8” DR., 1/2” DR., and 1/4” Hex,” and traditional ratchet wrenches are too the company can provide various and customized packages according to different markets long and heavy to use. At present, and customer needs.

80% of Ratchet-KH3200S are being sold to Europe, and they have successfully entered the professional auto Efficiency Better Than International Standard with High Stability repair and construction hardware markets.

The irregular arc handle of the Ratchet-KH3200S has undergone many practical tests, drawing, modification, 3D printing... and factors such as force, comfort, tool weight and working environment have been fully considered to create the most ergonomic design. It makes the operation more energy-saving and convenient, and also greatly optimizes and improves the work efficiency. The handle can also be customized with trademarks or directly molded logos in accordance with customer needs to enhance customers’ brand awareness and market recognition. Now Ratchet-KH3200S has obtained design patents in Taiwan and Germany, and the company is also planning to apply for EU and American patents in the future. In terms of product torque, the performance of Ratchet-KH3200S is also significantly better than market standards and international norms (e.g., DIN, ANSI, JIS, etc.), and the surface of the product has been also done with the best anti-wear and anti-rust special electroplating treatment to extend its service life. Through the optimization of the production, the cost and defect rate are also greatly reduced, and the stability is also significantly improved.

034

Pa tte rn s

A-KRAFT Tools said, “In September and October of this year, we plan to participate in the International Hardware Fair Cologne (IHF), Automechanika Frankfurt, and Taiwan International Tools & Hardware Expo to fully demonstrate the advantages of Ratchet-KH3200S, strengthen market promotion and provide customers with the whole new experience of ratchet products. We are very confident that we can get the affirmation and recognition from customers and the market.”

Va rio us St am pin g

Hardware & Fastener Components - no.54/2022

Ergonomic Handle for Easier Operation

Contact: Mr. Jeff Chen (Vice General Manager) Email: 0358@akraft.com.tw

Fastening Tools Suppliers >> 僑誼實業- 中高階氣動/電動工具專家 完善售後服務+專業技術諮詢

Hanmaster-

Mid/High End Pneumatic/ Power Tool Expert Complete Aftersales Service + Professional Technical Consulting

Hardware & Fastener Components - no.54/2022

Hanmaster Corporation based in Taiwan is a time-honored company dedicated to sales of professional pneumatic tools. It is specialized in production and representative sales of mid/high end pneumatic and power tools. Supported by the Chungli-based plant of Formosa Pneumatic Industries Co., Ltd. of the same conglomerate, it produces professional pneumatic tools (including several models of general aftermarket and riveting fastening tools) of its own “Hanma” brand and can improve product design according to different customers’ demands. Hanmaster is also the exclusive sales representative in Taiwan for Sweden pneumatic and power tools manufacturer, Atlas Copco.

“Atlas Copco is a brand of high-end pneumatic/power tools and around 80% of its series are digitalized products showing very precise torque value control. Its global market share is over 20%. In addition to sales of main products, Atlas Copco tools are also sold together with their peripheral systems, which can display accurate data for integral record management and allow users to connect their PCs with its software. We are very lucky to be able to promote its good products to our clients, which also helps us learn their first-rate craftsmanship through working with them for such a long period of time. We also oftentimes dispatch our employees to learn overseas,” said President Philip Chang.

Hanmaster has established close collaborations with local clients from leading automotive, motorbike, aerospace, bicycle, auto parts and wheel industries as well as the R&D divisions of IT companies through direct sales of its self-owned brand or representative sales to meet the demand of t hese professiona l cl ie nt s fo r m id / h ig h end fastening tools. In addition to domestic sales (15%) and overseas sales to China and Southeast Asia, around 60-80% of its “Hanma” products are sold to European and U.S. markets.

Pneumatic tools can be categorized into “rotating type” and “reciprocating type” in terms of function.“ In addition to being safer than other traditional power tools (featuring risks like high temperature and explosion), the lighter tools can significantly save the labor of users, which is good news and a big progress for workers working in automotive and aerospace plants for a long time. Moreover, Hanmaster is also dedicated to the improvement and optimization of energy consumption of tools. Chang added, “Pneumatic motors are very energyconsuming, but the actual output of efficacy may be around 30% only. As a result, we increase the processing precision to greatly improve the efficiency. Although everyone is working hard toward this goal, we are more competitive in terms of technology due to the high entry barrier to the R&D of digital tools that requires more investments and our long term experience in high-end tools representative sales.”

Speaking of maintaining pneumatic tools, President Chang thinks that it is a profound area with the requirements for expertise. With appropriate maintenance and good aftersales service, pneumatic tools can be used for a long period of time.

He said, “The pneumatic tool market in Taiwan is smaller than in other countries. Under fierce competition, aftersales service and quality are exceptionally important. We have many years of product experience and know the features and applicable range of various pneumatic tools very well. In Taiwan we have been providing consultation for other companies in the same industry. In addition to maintenance & repair of general pneumatic tools and use instructions for users, we also offer clients repair service for competitors’ products if we can acquire those parts.”

President Chang said that Hanmaster will focus its R&D on mid/high end pneumatic/electric tools, combine the concept of environmental protection into product design, pay more attention to customization, make adjustments on existing models or optimize parts assembly based on different customers, repeatedly discuss and test with clients, and implement the spirit of service into the manufacturing industry.” Chang added, “Tools are all invented by humans.

Pneumatic/power tools are just a very small part of the industry. If you don’t change the way you think, you will be replaced. Hanmaster will walk on the frontline of the industry with Formosa Pneumatic Industries and write a new chapter in the machine tools market.”

Hanmaster contact: Karin Wei (Export Manager)

036

Email: karin@hanma.com.tw

Company Focus >> 華國五金 高精密零件 客製化服務

Customized Service for High-Precision Components

by Gang Hao Chang, Vice Editor-in-Chief of Fastener World

In response to the common demand for JIS and DIN standards compliant products from industrial customers, HwaGuo also has sufficient products in stock for immediate supply. If customers have special size or specification requirements, the professional technical and sales teams have enough experiences and abilities to provide fully customized service as well. It can also provide surface treatments of finished products that meet the needs of customers such as environmentally friendly & RoHS compliant platings or coatings in various colors.

Hardware & Fastener Components - no.54/2022

Contact: Ms. Mei Hua Chen Email: sales@hwaguo.com, hwaguo@gmail.com

038

HwaGuo Industrial Fasteners Co., Ltd. specializes in spring steel fasteners, retaining rings for holes and shafts, springs, tooth washers, U-nuts, speed nuts and E-rings, etc. In addition to 20% of its products supplied to domestic traders and hardware distributors, most of its products are shipped to buyers and customers in Europe, America, Southeast Asia, and the Middle East. Since its establishment in 1977, its global sales footprint has expanded to cover more than 80 countries around the world. Under the leadership of Chairman D. S. Wang, HwaGuo has accumulated rich experiences and good reputation in the global aviation, construction, automobile, furniture, medical, electronic products, and energy industries for its excellent quality of products and perfect service.

Fast Delivery and Sufficient JIS and DIN Standards Compliant Products in Stock HwaGuo is headquartered in Wugu District of New Taipei City.

Its factory spanning the area of over 1,000 sqm not only provides a comfortable workplace for employees, but also introduces complete and advanced manufacturing, quality management and testing equipment (including projectors, hardness testers, automatic optical inspection machines, sorting machines, and high-speed precision punches, etc.) to help improve product quality and delivery efficiency.

According to HwaGuo, “Whether it is spring steel, stainless steel, copper, nylon, plastic and other materials, or surface treatments like electroplating, coatings, or any others required by car manufacturers, or even requirements for small packages, barcodes, and labels, we all welcome customers to discuss and develop designs with us together.

If necessary, we can also provide special documents such as IMDS (International Material Data System) or PPAP III (Production Part Approval Process). We’ve always followed the strategy of high-precision and customization. Therefore, we can demonstrate a high degree of competitiveness in the global market. In the future, we also look forward to continuously adhering to our mission statement of good quality, preferential prices, and fast delivery, in order to create benefits mutually shared with customers.”

Hardware & Fastener Components no.54/2022

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Company Focus >>

“Bestai Enterprise” Determines to be a Reliable Partner to Global Customers Achieving the Desired Quality, Reliability, and Precision with One Try 「天裕峰」立志做全球客戶信賴的好夥伴

品質、可靠、精密一次到位

Bestai Enterprise Co., Ltd. has dedicated itself to the trade of precision industrial components for over 3 decades and is mainly specialized in the supply of various precision customized screws, bolts, nuts, and rivets. Automated CNC parts, precision machined parts, cold forged parts, stamped parts, and powder metallurgical parts, in particular, are what Bestai has been good at in terms of its service. It can also provide each customer with professional advice and multi-faceted technical suggestions upon receiving their samples. With the fierce competition in the trade of fasteners and industrial components, Bestai has been challenging itself, doing technical upgrade, and deepening & widening its service range since its inception in 1989 to meet the stringent quality requirements of global customers and has also gained a solid presence in the lathes, remote control, medical, automotive and other precision industrial components markets.

Creating Advantages in Competition for Customers 3 Steps + 1 Procedure for Quality Control to Guarantee No Defective Products Be it products made of iron, stainless steel, aluminum, or products made of brass, bronze, or plastics, one can always find the most suitable products and solutions from Bestai. As Bestai offers a countless number of items, which are mostly customized, its team adopts a very strict quality control policy and does whatever they can to ensure that materials required by each customer are durable and reliable, design procedures are on par with standards, and specifications of finished products can help create higher brand value and improve competing advantages of customers on the global stage.

In addition to concentricity gages, Rockwell hardness testers, and 2.5D optical measuring projectors, Bestai has also divided the inspection into 3 steps (incl. inspection in material feeding, inspection during manufacturing, and inspection right before shipment) and 1 manual inspection. Although 3 steps and 1 manual procedure take more time for consumption and demand for labor force, compared to other industry counterparts who only have quality inspection done once, it can ensure that all products shipped to the hands of customers reach the highest quality standards.

Over the past years, Bestai had its exhibiting footprints at major tradeshows, such as Fastener Fair USA and International Fastener Expo. Its excellent products & service via active exposure and word of mouths have won for Bestai a good reputation in the int’l market. Its products have been also successfully sold to China, Japan, Southeast Asia, N. America, S. America, W. Europe, and N. Europe with ever-growing remarkable sales.

Hardware & Fastener Components - no.54/2022

040

Worldwide Sales Aiming at Becoming Global Customers’ “Bestai”

According to Bestai, “All of our technical and service teams have been well-trained and have a wide knowledge of materials, surface treatments/coatings of semi-finished products, structural design of products, and torque/tensile requirements to immediately provide customers with suggestions for further improvements and adjustments. We expect to become the most reliable and best partner to global customers when it comes to quality and service.”

by Gang Hao Chang, Vice Editor-in-Chief of Fastener World

Contact: General Manager, Edward Lin Email: sales@bestai.com.tw

Hardware & Fastener Components no.54/2022

041

Editorial >>

by Dean Tseng, Fastener World

Worldwide Risks To Intensify in the Restructuring Era

「大重組」時代 全球性風險衝擊將更加劇烈 The past two years saw unceasing eruption of global market turbulence. Highly frequent market restructuring is already the new normal for enterprises. Restructuring happened once in the U.S.-China trade war, and again in the pandemic, and yet again at the crossfire between Ukraine and Russia. The risks on cost have become greater and ever more unpredictable for businesses. We are going to start from the perspectives of hand tool, component and fastener industries and look at the trends of the manufacturing industry in the restructuring era.

POSITIVE OUTLOOK FOR HAND TOOL MARKET;

Hardware & Fastener Components - no.54/2022

Caution Required to Cope with Sudden Global Crisis Hand Tool Export Increases with Orders Filling up H1 Order Book A market research company’s report shows the world’s hand tool market value was USD 8.4 billion in 2021 and that it will increase 22% to USD 10.3 billion in the next 5 years. On the other hand, the world’s electric tool market value was USD 34.3 billion in 2021 and that it will increase 31.7% to USD 45.2 billion by 2026. This is a clear sign that global hand tool market demand after the pandemic outbreak is just going to grow stronger.

Among all the countries, Taiwan is one of the top 5 hand tool exporters. The export value of Taiwan’s hand tools dropped as a result of the trade war and COVID-19 several years ago, but immediately picked up by 27.4% and landed at USD 4.79 billion in 2021 as the world economy warmed up and metal prices went up. The largest export destination for Taiwan’s hand tools is the U.S. with a recovering economy and enormous investment in infrastructure over the last two years that led to a 26.9% growth in Taiwan’s hand tool export to the U.S. The second largest destination is EU with a share growth of 33.3%. The U.S. and Europe altogether take up over 60% of Taiwan’s exported hand tools. Taiwanese hand tool companies like Basso Industry Corp. have had its purchase orders piling up to the end of Q2.

Coexisting with COVID, Vietnam Now in Rebound Becomes the New Hot Spot for Automotive and Electric Tools With Southeast Asian countries loosening border restrictions, the market expects the region’s purchase orders to explode in number and local transport to become vibrant. Among those countries, Vietnam’s trade volume this March increased 36.8% to

042

Hardware & Fastener Components no.54/2022

043

Editorial >> a total of USD 66.73 billion. The country exported a value of USD 34.06 billion, up 45.5% and imported USD 32.67 billion, up 28.7%. The freights for several marine lines headed for Vietnam has increased over 50%, showing a burst in the country’s momentum for trade flow and market demand.

Since two years ago, automotive component as well as electric tool companies have taken the opportunity to invest in Vietnam during market recession. Now they are seeing their investments slowly taking effect. A component company said there was a client redirecting orders to its Vietnam plant and this boosted its revenues to significantly increase this year and grow 20% next year. In the current global political status, Vietnam has become the go-to springboard for enterprises to exit from China. The American EV makers have also redirected orders to Vietnam and brought opportunities to local component plants. Furthermore, in recent years Vietnam has been active in developing the automotive industry and increasing localization rate. The demand for medium and large automotive components is expected to grow and it will drive the demand for components and tools. Clearly, as major electric hand tool and automotive companies redirect orders to Vietnam, local tool, component and fastener purchase will increase, and Vietnam will become a new hot spot after COVID outbreak.

When Russia-Ukraine War Throws a Wrench Into the World Market

Hardware & Fastener Components - no.54/2022

Despite the outlook for a growing hand tool demand, the abrupt Russia-Ukraine war skyrockets the costs for raw materials and transport. Also, Fed’s lifting interest rates is resulting in a decelerated orders placement. The hand tool industry will have to be deliberate about the second half year.

044

Take Taiwan for example, the country has about 235 companies exporting hand tools and hardware parts to Ukraine. The exported products include machines and automotive components, wrenches and spanners, hand tools, iron and steel screws, bolt and nuts. After the war outbreak, already there are Taiwanese companies encountering problems in collecting payments or unable to reach Ukrainian and Russian contacts. Currently Russia has been scratched off from the SWIFT system. The three largest marine container transport companies has paused Russia marine lines and China is now the third-party medium for cargoes’ entry into Russia.

Besides the aftermath of the war, a more globally impacting issue is that the war accelerates the Fed’s decision to raise the interest rate. If the Central Banks in various countries follow suit, it will increase enterprises’ operating costs and reduce their profits, leading to higher corporate credibility risks.

MATERIAL SHORTAGE AND SHANGHAI’S LOCKDOWN, Top Two Concerns for Fastener and Component Industries This Year An article from MetalMiner indicates that the global stainless steel shortage won’t alleviate for the time being and that this will be a long and painful process. The website gave an example that an American fastener manufacturer said its collaborative wire rod supplier ceased supplying 430 CHQ wire rodes. The website pointed out that steel supply problems improved at the end of last year but that demand remains large. Customers are in queue for steel rationing and shipping steel requires to wait for 4 to 6 months. Furthermore, nickel is an important material for stainless steel. The war has spiked nickel price which drives up stainless steel price; therefore, the stainless steel price will drop slower than when it increased last year.

Besides material shortage, the lockdown in Shanghai since this March has been further worsening the shortage. After Shanghai, Kunshan and some other cities announced a lockdown and it worsened to the extent that it created problems in the Apple supply chain in Chengdu. A Chinese fastener company said that the Chinese fastener market is very short of fastener and that they are desperately scrambling for materials.

As for Taiwan, the lockdown in China is a big impact on Taiwan’s fastener industry. The war leads to a surge in wire rod price and production cost that leaves Taiwanese fastener companies with flatlined order placement and they are giving up their hopes. Now with the lockdown in China, there is an impact on the capacity and supply of several Taiwanese businesses with branches in China. According to sources, a Taiwanese fastener company took early actions to redeploy capacity in China and Taiwan, largely increasing the capacity of its Taiwan headquarters via plant expansion to make it a primary production output. That is the reason it can maintain normal operation when its capacity in China is cut off. To sustain business, Taiwanese fastener companies are turning conservative and deliberate about investment and order handling this year.

The impact of Shanghai’s lockdown has made its way to the automotive supply chain as well. A car uses tens of thousands of components and lacking any one of them could lead to a temporary production halt. Almost every car brand in the world uses China-made automotive components, so tightening China’s production will cast a full-spectrum impact on the global automotive industry, and the ones that take the brunt are Taiwan, Japan and South Korea. Take Taiwan for instance, components from across China converging at Shanghai harbor cannot be exported, and it means no import source of components for Taiwanese carmakers and they are forced to reduce or stop production. As to Japan, problems

Editorial >> in component supply caused Mitsubishi, Mazda and Daihastu to announce a temporary production halt. Honda announced to cut production by 30%, and Nissan even put off launching sales of an EV model. As far as the U.S., the most typical case is Tesla with its Shanghai plant forced to halt production for over 3 weeks and losing over 40 thousand units of EVs that it could have produced, but Musk keeps his estimated capacity at 1.5 million for this year.

Research institute S&P Global Mobility estimates that the global light vehicle production will be 2.6 million vehicle less both in this year and next year which aggregates to a total of over 5 million vehicle less. The total estimated production for this year is 81.6 million vehicles and 88.5 million vehicles for next year. In a worst-case scenario, the two years’ production could drop by as many as 4 million vehicles. MarketsAndMarkets predicts EV sales will reach 8.15 million vehicles this year and 39.2 million vehicles by 2030, up 3.8 times. Obviously, EV purchase will continue to go up despite the supply chain disruption that affects EV production.

It is worth the attention that ever since the world begins to coexist with the virus, order placement to Boeing and Airbus has recovered to the pre-pandemic level and production is slowly growing back. This will put the aerospace component industry back into a recovery phase, and aerospace fastener and component companies should closely monitor this trend.

The Lifeline in RESTRUCTURING

Likewise, Taiwan faces the dilemma of drastic cost increase and crunched profits.

Despite the chaos in global supply chain, Taiwan’s manufacturing supply chain is barely affected and continues to grow and prosper, and overseas suppliers highly recognize Taiwanese suppliers. This is the biggest competitive edge for Taiwan.

In fact, in the opening days of Japa n Manufacturing Show this April, many Japanese local visitors told Fastener World that purchase prices in Japan are raised to the extent that they can’t dare to purchase some of the Japanese products. Therefore, many Japanese companies urgently need to purchase high quality and relatively lowprice products from Taiwan. Taiwan has never stopped supply before and after the pandemic outbreak. Besides purchasing domestic products, global purchasers are welcome to turn to Taiwan with stable and price-competitive product supply. Taiwan can support purchases across the world!

Hardware & Fastener Components - no.54/2022

In a time of coexistence with the virus, the RussiaUkraine war came by surprise and cast an impact greater than the virus. It is the direct cause for a global restructuring of supply chain. Democratic countries side with the supply chain led by the U.S., and the sanctions slay the opposing side to the bones at all costs even if the sanctions are almost as much damaging for both sides.

“Restructuring of industry chain” sweeps the manufacturing industry at lightning speed a nd supply chai n disr uption is making countries transition to “localized production” and “localized purchase”.

Companies are doing whatever they can to suppress costs and try to offset astonishing cost growth in logistics. This is a time that calls for higher crisis awareness and external crisis is always much higher than a company’s internal operation crisis.

Therefore, companies across the world must change the mode of business immediately.

045

Industry Focus >>

2021 Financial Reports of

Compiled by Fastener World

Hand Tool & Hardware Companies

updated on April 14, 2022 Monetary unit in millions

五金與手工具大廠財報

Taiwan Company

Mobiletron

(NTD)

Financial Year

Revenue

Operating Gross Profit

Operating Profit

Pre-tax Income

Net Income (Loss)

2021

2,932.537

877.190

29.095

37.746

12.876

2020

2,866.192

803.978

64.002

60.142

(5.000)

▲2.3

▲9.1

▼54.5

▼37.2

---

Change (%)

U.S.A Company

Simpson Strong-Tie

Financial Year

Net Sales Gross Profit

Operating Income

Pre-tax Income

Net Income

1,573.217

755.030

367.793

358.549

266.447

2020

1,267.945

576.384

252.363

249.564

187.000

▲24.0

▲30.9

▲45.7

▲43.6

▲42.4

Europe

Hardware & Fastener Components - no.54/2022

Company

046

Hilti Group

Financial Year

Revenue

Operating Profit

Net Income

2021

5,978

847

675

2020

5,332

728

531

Change (%)

▲12.1

▲16.3

▲27.1

Ingersoll Rand

Financial Year

Revenue

2022 vs. 2021 Total Assets

1,484.125 vs.

1,232.569

(CHF)

Gross Profit

2022 vs. 2021 Total Assets

---

Europe Company

7,716.585 vs.

6,428.761

(USD)

2021

Change (%)

2022 vs. 2021 Total Assets

(USD) Operating Income

Pre-tax Income (Loss)

Net Income 2022 vs. 2021 (Loss) Total Assets

2021

5,152.4

1,988.5

565.7

513.0

562.5

2020

3,973.2

1,404.9

59.6

(45.4)

(33.3)

Change (%)

▲29.6

▲41.5

▲849

---

---

15,154.5 vs.

16,058.6

Hardware & Fastener Components no.54/2022

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048 Hardware & Fastener Components no.54/2022

050 Hardware & Fastener Components no.54/2022

058 Hardware & Fastener Components no.54/2022

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059

Industry Focus >>

Fastening Tools Trade Statistics 美加緊固工具貿易統計 Import

(in Million USD), in descending order according to figures of 2021

HS 8204 - Hand-Operated Spanners & Wrenches Partner Rank World 1 Taiwan 2 China 3 India 4 Vietnam 5 Germany 6 Mexico 7 Spain 8 Czech Republic 9 Japan 10 Canada

2017 569 200 285 20 0 18 6 8 1 5 5

2018 640 209 342 21 0 22 5 9 1 6 4

2019 682 253 326 28 1 22 5 9 1 10 5

2020 590 268 223 25 7 25 3 11 2 4 4

2021 771 347 257 52 27 27 14 12 6 5 4

HS 8205 - Drilling, Threading Or Tapping Hand Tools Rank

Hardware & Fastener Components - no.54/2022

-USA-

060

1 2 3 4 5 6 7 8 9 10

Partner World China Taiwan Mexico India Germany Vietnam Canada Japan Austria U.K.

2017 1,199 648 221 65 40 44 8 26 24 16 20

2018 1,341 729 238 73 45 50 12 31 28 22 21

2019 1,209 606 242 67 43 49 13 32 24 21 21

2020 1,249 631 273 72 40 38 25 29 22 18 17

2021 1,528 726 361 79 61 48 39 35 28 21 19

HS 8207 - Interchangeable Tools Nes; Blow Lamps; Anvils, Portable Forges, Grinding Wheels And The Like Rank

compiled by Fastener World

1 2 3 4 5 6 7 8 9 10

Partner World China Japan Germany Canada South Korea Taiwan Italy Mexico India Vietnam

2017 2,982 791 548 415 267 225 95 76 105 37 7

2018 3,357 921 543 499 285 305 99 86 107 36 7

2019 2,960 678 572 439 230 250 114 88 112 40 9

2020 2,721 654 499 341 217 283 129 83 75 34 14

2021 3,124 679 546 398 288 247 180 110 90 54 49

Hardware & Fastener Components no.54/2022

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Industry Focus >>

Export HS 8204 - Hand-Operated Spanners & Wrenches Rank 1 2 3 4 5 6 7 8 9 10

Partner World Canada Mexico U. K. Japan Australia Germany China Singapore Belgium Netherlands

2017 248 66 17 24 11 11 14 11 6 3 5

2018 270 70 17 27 14 15 14 10 8 5 7

2019 253 70 22 22 16 13 12 9 6 5 6

2020 202 61 13 16 9 13 10 8 5 5 4

2021 241 75 17 17 15 14 11 10 6 5 5

HS 8205 - Drilling, Threading Or Tapping Hand Tools Rank 1 2 3 4 5 6 7 8 9 10

Partner World Canada Mexico U. K. Germany Australia China Japan France South Korea Netherlands

2017 578 169 47 33 27 22 20 13 12 12 8

2018 647 183 69 34 30 22 17 15 12 16 9

2019 618 175 64 37 28 22 18 20 18 9 9

2020 512 165 60 32 24 23 15 12 12 7 10

2021 579 186 60 43 28 25 18 15 12 11 11

HS 8207 - Interchangeable Tools Nes; Blow Lamps; Anvils, Portable Forges, Grinding Wheels And The Like Rank 1 2 3 4 5 6 7 8 9 10

Partner World Canada Mexico Belgium Germany China U. K. Australia Saudi Arabia Japan Brazil

2017 1,966 530 450 14 56 69 63 43 56 42 25

2018 2,077 544 474 13 65 75 75 49 57 44 30

2019 1,997 506 424 15 63 66 67 50 56 40 28

Hardware & Fastener Components - no.54/2022

Source: U.S. ITA of Department of Commerce

062

Import

-Canada-

(in USD), in descending order according to figures of 2021

HS 8204 - Hand-Operated Spanners & Wrenches Partner 2017 2018 2019 2020 2021 Rank World 122,551,441 134,765,784 142,055,968 102,818,662 120,601,524 1 China 50,022,073 59,732,055 54,324,683 37,997,929 39,869,065 2 U.S.A. 44,249,670 44,148,610 43,750,265 33,919,823 39,536,488 3 Taiwan 21,619,824 22,723,002 21,801,702 22,192,526 27,719,512 4 Germany 2,169,949 2,531,751 2,838,352 2,684,061 3,850,728 5 Czech 223,660 339,110 417,326 587,732 1,731,912 6 India 582,702 1,102,661 689,614 820,101 1,495,355 7 Spain 887,132 861,214 911,746 1,073,754 1,414,286 8 Vietnam 7,408 106,401 36,438 383,068 677,670 9 Japan 453,051 346,091 14,212,601 264,911 625,206 10 Argentina 13,364 24,963 13,517 129,570 618,986

2020 1,605 440 346 11 57 56 49 48 54 36 28

2021 2,057 517 418 242 72 62 53 51 44 42 33

Hardware & Fastener Components no.54/2022

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Industry Focus >> HS 8205 - Drilling, Threading Or Tapping Hand Tools Rank 1

Partner

2017

2018

2019

2020

2021

World

259,035,614

282,683,415

279,549,323

258,629,144

312,491,322

China

92,294,569

100,450,465

102,728,232

105,785,206

130,226,561

2

U.S.A.

99,289,449

103,809,955

100,911,189

86,268,718

96,711,772

3

Taiwan

24,578,708

26,063,247

25,132,253

25,452,277

32,277,986

4

Germany

8,701,689

9,297,923

9,061,965

8,515,125

11,140,822

5

Japan

2,895,527

4,520,125

3,511,279

3,559,534

5,599,252

6

Mexico

4,641,584

5,217,746

4,749,456

4,410,288

5,222,315

7

Italy

3,944,082

3,989,860

5,140,886

2,779,066

3,361,665

8

India

2,619,110

3,388,021

2,705,628

2,383,780

3,187,700

9

Austria

1,814,111

3,516,818

2,765,343

2,088,408

2,987,022

10

U. K.

2,128,355

2,265,275

2,182,723

2,436,128

2,930,184

HS 8207 - Interchangeable Tools Nes; Blow Lamps; Anvils, Portable Forges, Grinding Wheels And The Like

Hardware & Fastener Components - no.54/2022

Rank

064

Partner

2017

2018

2019

2020

2021

World

818,459,318

870,562,063

775,496,796

738,101,354

884,815,368

1

U.S.A.

370,266,515

364,263,231

328,115,680

282,620,933

328,743,761

2

China

161,035,073

187,614,102

172,984,640

209,779,268

249,441,250

3

Japan

41,036,052

75,256,950

33,361,305

41,846,585

57,210,442

4

Germany

52,279,170

53,244,150

56,330,357

49,111,512

52,195,348

5

S. Korea

54,836,252

33,274,870

29,214,915

22,813,254

36,366,975

6

Sweden

23,130,568

25,091,276

31,542,116

21,522,331

26,339,680

7

Taiwan

20,267,739

23,538,917

23,737,370

24,897,556

23,920,055

8

Italy

8,629,218

9,453,515

9,301,466

10,405,765

12,356,593

9

India

7,205,162

7,442,200

8,048,829

6,589,175

9,712,465

10

Finland

2,709,288

2,625,564

2,365,126

3,178,296

8,539,560

Export HS 8204 - Hand-Operated Spanners & Wrenches Rank

Partner

2017

2018

2019

2020

2021

World

9,926,880

9,694,733

10,740,899

8,115,204

9,828,265

1

U.S.A.

6,394,613

6,518,721

7,109,324

5,475,770

6,009,945

2

Liberia

--

--

953

--

448,903

3

Australia

385,628

128,928

224,908

295,992

341,205

4

Saudi Arabia

61,383

68,543

51,145

57,296

268,803

5

Russia

172,147

234,431

188,935

171,359

226,115

6

Germany

253,115

135,204

413,573

218,370

221,067

7

U. K.

219,836

178,129

243,684

130,125

216,803

8

Mexico

152,410

158,586

220,971

133,816

184,956

9

Netherlands

33,988

11,221

83,953

218,006

163,673

10

France

55,235

91,900

77,246

113,515

123,869

Hardware & Fastener Components no.54/2022

065

Industry Focus >> HS 8205 - Drilling, Threading Or Tapping Hand Tools Partner

2017

2018

2019

2020

2021

World

54,144,361

63,844,358

64,921,746

60,280,786

67,993,937

1

U.S.A.

34,293,832

38,432,188

39,078,645

34,843,843

42,379,415

Rank

2

France

1,514,909

3,338,420

3,897,778

3,056,958

3,619,233

3

U. K.

1,876,228

2,393,136

2,211,518

3,709,429

2,917,876

4

Saudi Arabia

211,777

1,998,540

2,102,251

195,907

2,368,697

5

Australia

1,663,562

1,542,888

1,539,478

1,413,209

2,028,579

6

Germany

2,586,761

4,223,271

3,119,157

3,019,450

1,983,210

7

Iceland

6,503

--

8,660

13,481

1,574,887

8

China

680,728

873,635

459,519

798,545

1,529,509

9

Japan

264,100

461,621

355,041

329,656

1,229,813

10

Mexico

378,788

658,940

763,631

692,061

732,811

HS 8207 - Interchangeable Tools Nes; Blow Lamps; Anvils, Portable Forges, Grinding Wheels And The Like Rank

Partner

2019

2020

2021

World

474,186,280

499,655,556

426,065,364

358,275,176

440,494,206

U.S.A.

344,487,260

365,722,315

301,192,137

264,797,361

326,253,048

2

Mexico

30,678,860

31,226,709

21,838,207

15,220,984

16,486,776

3

11,289,507

13,092,785

12,822,769

10,303,251

12,480,766

--

--

158

33,360

6,561,734

5

Australia U.S. Minor Outlying Islands Chile

5,719,298

6,032,524

7,638,924

5,984,385

6,065,608

6

Ecuador

2,288,461

2,535,313

1,571,517

1,712,622

5,157,621

7

Russia

3,007,526

3,098,756

3,285,383

4,154,866

5,129,694

8

Finland

4,376,322

4,033,716

4,406,931

4,775,676

5,031,515

9

Burkina Faso

6,097,118

5,818,348

8,386,649

8,217,059

4,863,781

10

Colombia

2,424,092

3,829,092

4,619,732

2,673,145

4,200,820

Source: Canada.ca

Hardware & Fastener Components - no.54/2022

2018

1

4

066

2017

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067

Industry Focus >>

by Arthur Hsu

Impact Analysis of

Russia-Ukraine Conflict on Taiwan’s Fastening Tools Industry 俄烏衝突對台灣扣件緊固工具產業之影響分析

Hardware & Fastener Components - no.54/2022

1

Overall Impact of the Russia-Ukraine Conflict

Since the COVID-19 pandemic outbreak in 2019, global political and economic situations have been disturbed and only slightly began returning to normal at the start of 2022. However, the conflict between Russia and Ukraine since February 4 is still continuing, which has resulted in a supply shortage of global metal materials and raw materials and soaring prices, and Taiwan’s government, associations, and manufacturers have been keeping a close watch on the conflict and influences on the domestic industry so that they can take countermeasures at any time. According to the International Trade Administration’s statistics, Taiwan’s top 10 exported industrial products to Russia and Ukraine consist of several raw metal materials and associated products, and two fastener fastening tool items (socket wrenches and other hand tools) are included. Therefore, it is necessary to do further research, and discuss Taiwan’s fastener and fastening tools and similar products. The amounts and ranking of goods among Taiwan’s top 10 imported and exported industrial products from and to Russia and Ukraine are listed in Table 1 below.

Table 1. The Amounts and Ranking of Goods Among Taiwan’s Top 10 Imported and Exported Unit: US$ 0.1 bn ; % Industrial Products from and to Russia and Ukraine Russia HS code

Product

Amount

Proportion

Rank

HS code

Product

Amount

Proportion

Rank

76011000

Aluminum (nonalloyed steel)

11.31

13.53

3

74032100

Copper-zinc based alloy

1.062

31.25

1

--

--

--

--

--

76012020

Aluminum alloy ingot

0.096

0.33

21

2.11

2.23

10

72193390

Other cold rolled products

0.437

0.55

30

Steel screws and bolts

1.978

0.76

19

82055990

Other hand tools

0.427

0.45

24

--

--

--

--

82042000

Replaceable socket wrenches

0.397

0.86

17

Import

82055990 Other hand tools Export 73181590 --

068

Ukraine

Data source: Bureau of Foreign Trade, MOEA/sorted by this research

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Industry Focus >> Driven by the future political and economic environment, key topics will include how Taiwan will manage to reduce raw materials acquisition difficulty and costs in the future Russia-Ukraine conflict and how it will evade the impacts of international sanctions to consistently maintain its competitiveness after international market reformulation. This research proposes countermeasures for Taiwan industries and associative manufacturers for reference.

2

Taiwan’s Fastening Tools Industry Development Trends in Recent Years

The production value of fastening tools in 2021 was about NT$ 42.46 billion in total, among which, the import value was NT$ 2.87 billion, the export value was NT$ 36.51 billion, the domestic market sales were NT$ 8.81 billion, and the export proportion was about 86.0%. The compound annual growth rate (CAGR) of the past six years has been 5.77%, the degree of dependence on import is 32.5%, and the degree of domestic self-sufficiency is 67.5%. However, the export performance in 2021 slowed down due to the epidemic, and with the influence of stimulus measures from various countries gradually fermented, domestic major manufacturers’ orders had led export performance in 2021 to grow by 27.1% compared with 2020; the imports and exports of Taiwan’s fastening tools industry in 2016-2021 are listed in Table 2.

Table 2. Imports and Exports of Taiwan’s Fastening Tools Industry Unit: NT$ 0.1 bn; % in 2016-2021 Items

2016

2017

2018

2019

2020

2021

CAGR

Output Value

383.0

366.8

383.6

387.3

346.2

424.6

2.08%

Import Value

19.5

19.2

20.3

22.5

24.1

28.7

8.04%

Output Value

275.9

291.6

308.8

317.7

287.2

365.1

5.77%

Domestic Market Demands

126.7

94.4

95.2

92.0

83.2

88.1

-7.00%

Degree of Dependence on Import

15.4%

20.3%

21.3%

24.4%

29.0%

32.5%

16.17%

Export Proportion (%)

72.0%

79.5%

80.5%

82.0%

83.0%

86.0%

3.61%

Self-Sufficien84.6% cy Rate (%)

79.7%

78.7%

75.6%

71.0%

67.5%

-4.43%

Data source: R.O.C. Statistics Database Query/sorted by this research

3

Situation and Analysis of Impact from RussiaUkraine Conflict on Fastening Tools Industry

(A) Steel Materials Export from Russia-Ukraine to the World The global crude steel output in 2021 was about 1.95 billion MT, of which Russia accounted for about 76 million MT (or 3.9%) and globally ranking No. 5, while Ukraine was about 21.4 million MT, accounting for 1.1% and globally ranking 14, with both countries accounting for 5% of the global total; among the rest, Russia’s export sales amount every year is about 30 million tons, and that of Ukraine is 15 MT, a total of 45 million MT.

Hardware & Fastener Components - no.54/2022

The Russia-Ukraine conflict is spreading, and their domestic steel plants are destroyed or blocked for export; furthermore, Tangshan in mainland China is closed due to the epidemic, all of which results in a shortage of the global steel supply by more than 100 million tons. Although affected by steel prices soaring and market transaction rising due to Russia-Ukraine conflict, the global crude steel rate of capacity utilization in 2021 was about 78.4%, so it can promote output and handle the deficiency, thus avoiding excessive shortage in the short term.

070

The volume of Taiwan’s crude steel import from Russia in 2021 reached 1.45 million tons, occupying 34.8% of the total, while about 116,000 tons of iron ore were imported from Ukraine, occupying 0.5% of the total, so it is easy to see that the steel industry is mainly affected under the conflict as Taiwan mostly imports billet steel semi-finished products from Russia and Ukraine for output adjustment in the peak season. However, such steel billets have already been under self-production through domestic blast and electric furnace plants with an annual output achieving 23.23 million tons. According to survey data from the Iron and Steel Association, various kinds of alternative raw materials are available for such billet steels and may also be imported from Vietnam, Indonesia, Brazil, etc., to reduce the impact on supply and demand.

Moreover, raw materials for Taiwan’s fastening tools are mainly from Taiwan CSC, which has a self-production ability for domestic steel products. As for the rise in prices, Taiwan CSC may be requested to consider downstream practitioners’ competitiveness and cooperate with government policy, thus keeping such impacts under control.

(B) Russia & Ukraine’s Fastening Tools Import from the World The combined value of fastening tools Russia and Ukraine imported from the world in 2020 was nearly US$0.6 bn dollars (about NT$ 16.8 billion) in total, accounting for 2.7% of the market, with Russia accounting for the value more than Ukraine’s in terms of import amounts, namely US$0.51 bn dollars (about NT$ 14.3 billion), occupying 2.3% of the global, and with a compound annual growth rate (CAGR) from 2017 to 2021 at 1.6%. Nevertheless, Ukraine’s import amount of fastening tools was US$80 million dollars (about NT$ 2.25 billion), occupying 0.4% of the total, also with a compound annual growth rate (CAGR) from 2017 to 2021 at 11.9%. Imports of Russia and Ukraine’s fastening tools from the world are listed in Table 3 below:

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Industry Focus >> Table 3. Imports of Russia & Ukraine’s Fastening Tools from the World in 2017-2020

Unit: US$ 0.1 bn; %

2017

2018

2019

2020

2020 Proportion

CAGR

Russia’s Imports

4.9

5.2

5.0

5.1

2.3%

1.6%

Ukraine’s Imports

0.6

0.6

0.7

0.8

0.4%

11.9%

Global Total Import Value

203.4

223.2

220.1

222.6

100.0%

3.1%

Data source: ITC Trade statistics /sorted by this research

(C) Impact from the Russia-Ukraine Conflict on Global Shipment and Lead Time The Russia-Ukraine conflict has disrupted the global metal materials and associated seaborne trades and may also trigger bulk carriers and oil tankers’ freight rise in prices. Provided that trade is interrupted by the conflict, substitutes for imported goods, as well as demands for longrange transportation and more vessels, all depend on the duration of the Russia-Ukraine conflict. With Europe and America’s sanctions on Russia fermenting and the blockade of Russia’s export trade, in addition to avoiding Ukraine’s ports for freight handling, bulk carriers shall note that banks refuse to open a L/C, that vessel or chartering practitioners are unable to pay, and that shipowners and carriers’ assets are tied up; while the further negative effect is that if Europe and America continue to expand the sanction scope in the future, namely embargoing energies and bulk supplies, such as petroleum, iron ore, coals, etc., some fastening tools manufacturers in Taiwan will be unable to make deliveries and be paid on time because of blocked shipping.

4

Situation and Analysis of Taiwan’s Fastening Tools Export to Russia & Ukraine

Taiwan’s fastening tool products exported to Russia in 2021 amounted to NT$ 960 million, with a compound annual growth rate (CAGR) of 12.6% over the past six years and occupying 2.6% of the global exports; meanwhile, its fastening tools exported to Ukraine in the same year amounted to NT$ 240 million, also with a compound annual growth rate (CAGR) of 8.7% and occupying 0.7% of the global exports.

Therefore, it can be seen that Taiwan’s fastening tools to Russia and Ukraine all have lower export values and proportions, as shown in the following Table 4 from 2016~2021.

Taiwan’s fastening tools are exported mostly to U.S. market, while the export to Russia and Ukraine account for only NT$ 1.2 billion, occupying 3.3% of the global exports, which is unlikely to have much impact on the economy and trade or through market transfer to reduce such impact.

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Table 4. Taiwan’s Fastening Tools Export to Russia & Ukraine in 2016-2021

072

Unit: NT$ 0.1 bn; % 2021 Market CAGR Proportion

2016

2017

2018

2019

2020

2021

Taiwan’s Exports to Russia

5.3

8.1

7.0

8.0

6.2

9.6

2.6%

12.6%

Taiwan’s Exports to Ukraine

1.6

1.9

2.0

2.7

1.9

2.4

0.7%

8.7%

Taiwan’s Global Exports

275.9

291.6

308.8

317.7

287.2

365.1

100.0%

5.8%

Data source: Taiwan’ s Statistics Database Query / Customs tariff of each country / Sorted by this research

Regarding exports to Russia, Taiwan’s exported fastening tools to Russia in 2021 amounted to NT$ 965 million, and the top three products were interchangeable socket wrenches (NT$ 441 million, 45.7%), adjustable spanners and wrenches (NT$ 0.14 bn, 14.5%), and pliers, tweezers, and other similar products (NT$ 94 million, 9.7%). As for the exports to Ukraine, Taiwan’s exported fastening tools to Ukraine amounted to NT$ 240 million, and the top three products were interchangeable socket wrenches (NT$ 111 million, 46.2%), non-adjustable spanners and wrenches (NT$ 38 million, 16.0%), and adjustable spanners and wrenches (NT$ 32 million, 13.1%). It is observed that two of the same items appear in Taiwan’s top three products exported to Russia and Ukraine, demonstrating that such products are competitive in the Russia-Ukraine markets; Taiwan’s export amounts and proportions for each fastening tools to Russia and Ukraine in 2021 are listed in Table 5.

5

Conclusions and Future Suggestions

(A) Conclusions 1. Raw metal materials: Taiwan’s import volume of crude steel from Russia reaches 1.45 million tons, occupying 34.8% of total import volume, but since it can produce domestically or import from other countries, there is no need to worry about supply chain disruption or insufficiency in effective demand. Furthermore, the nickel material for fastening tools manufacturing and electroplating process that are imported from Russia are ten percent more than the aforementioned, but in this case also, Taiwan has other substitute source countries and no supply failure risk.

Industry Focus >> Table 5. Amount and Proportion of Taiwan’s Export to Russia and Ukraine for Each Fastening Tool in 2021 Unit: NT$ 0.1 bn; % HS code

Product name

Russia

Export Proportion

Ukraine

Export Proportion

8203200000

Pliers, pincers, tweezers

0.94

9.7%

0.24

10.0%

Bolt removers and similar tools

0.01

0.1%

0.01

0.2%

0.93

9.6%

0.38

16.0%

1.40

14.5%

0.32

13.1%

4.41

45.7%

1.11

46.2%

0.01

0.1%

0.00

0.0%

8203400010 8204110000 8204120000 8204200000 8205100020

Hand-held spanners and wrenches (non-adjustable) Hand-held spanners and wrenches (adjustable) Interchangeable socket wrenches Tools for drilling, cutting, or tapping

8205200000

Hammer and sledgehammers

0.05

0.5%

0.01

0.3%

8205400000

Screwdrivers

0.57

5.9%

0.15

6.1%

8205592000

Office punches, nail pullers

0.07

0.8%

0.01

0.3%

8205599010

Emission nailers

0.17

1.7%

0.01

0.6%

8205700000

Pincer pliers, clamps

0.25

2.6%

0.03

1.1%

8467112000

Portable pneumatic screwdrivers

0.02

0.2%

0.00

0.0%

8467113000

Portable pneumatic wrenches

0.82

8.5%

0.14

5.9%

8467293000

Power socket wrenches

0.01

0.1%

0.00

0.1%

9.65

100.0%

2.40

100.0%

Total

Data source: Taiwan Statistics Database Query / Customs tariff of each country / Sorted by this research

2. Taiwan’s fastening tools are mainly exported to the U.S., while the export amounts to Russia and Ukraine are only NT$ 1.22 billion, occupying 3.3% of its global sales, which has little influence on Taiwan’s overall trade layout and also can be transferred to reduce via export sales.

in case of global steel metal prices rising due to the conflict, the government shall consider controlling domestic scraps export through recycling and reusing in order to improve the recovery rate and stabilize the price of metals.

3. Taiwan’s fastening tools practitioners are mainly OEM, and although Russia and Ukraine are not major export markets, some OEM firms as well as practitioners with Russian clients are affected. However, as their sales turnover proportions to Russia and Ukraine are not high, the overall impact is also slight.

4. Turn to purchase from other countries or boost domestic procurement: If Taiwan restricts its metal products to Russia, it may also suffer anti-sanctions on its economy and trade, and on such an occasion, Taiwan may introduce a flexible output adjustment, namely turning to purchase from other countries or boosting domestic procurement.

Hardware & Fastener Components - no.54/2022

(B) Suggestions

074

1. Stabilize domestic demands: Implement forward-looking plans, reshoring of Taiwanese manufacturers, and other metalrelated policies in order to expand each domestic steel application demand, guide fastening tools practitioners in continuously developing high value-added products, and take advantage of wind power, green energy, EV, and other market opportunities.

2. Enhance supply and demand price monitoring mechanisms: The government has set up a metal material supply and demand price monitoring platform for metal-related practitioners’ references in order to promote their sensitivities to metal materials supply, demand, and price, and maintains contact with associations and manufacturers to take countermeasures for any possible variables that may be triggered by the Russia-Ukraine conflict.

3. Control scraps export and improve recycling and reusing: If the Russia-Ukraine conflict continues to spread, steel metal outputs and export sales from Russia will be reduced sharply, which may result in fluctuations in global prices. Therefore,

5. Assist in expanding export sales: Continuously intensify Taiwan’s engagement in economic and trade cooperation systems (such as CPTPP) and strive to get the United States 232 steel and aluminum tariffs exemption in order to promote the diversification of trade and production bases as well as emerging market layout, thus assisting industry practitioners in potential market development.

6. Steadily develop high value-added fastening tools products: Conduct fastening tools industry value chain gap analysis to solve the industry’s technical problems and enhance the industry chain’s R&D momentum by integrating development in the upper, middle, and lower reaches for high value-added products development in order to guarantee competitive advantages in future high-quality goods markets, thus breaking away from low price competition in low-end markets.

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075

Industry Focus >>

by Sharareh Shahidi Hamedani

An Analysis of Chinese

Electric Vehicles Market 剖析中國電動車市場

Chine se elec tr ic vehicle s market was valued at USD 124.2 billion in 2021, and it is expected to reach USD 799 billion by 2027 by registering a CAGR of over 30.1% during the forecast period (2022 - 2027).

Hardware & Fastener Components - no.54/2022

According to CPCA (China Passenger Car Association), China sold a total of 3.31 million new energy passenger vehicles in 2021, accounting for a 53% share of the global market, taking back the position it lost to Europe which finished 2021 with only 33%, while the United States accounted for 11% of new energy vehicle sales. Again, CPCA’ s figures align closely with those of the IEA, which reported China as finishing 2021 with 3.4 million electric vehicle registrations, which would account for a 51.5% share of the global market. According to Chinese electric vehicle media outlet (CnEVPost), which reported on the CPCA’ s new report, China returned to the global leader after a slump in 2020 which saw the country’ s share of new energy vehicle sales fall to 41%, allowing Europe to jump a spot with 44%. EV deliveries are expected to hit 5 million and climb to as high as 20 million by 2030, according to think tank China EV 100.

076

Authorities in China are paying increasing attention to any possible weak links that could undermine the EV sector after weathering this year's chip shortage, which still disrupts production to this day.

Automakers in the country rely on imports for raw materials like cobalt and lithium but also refrigerants that are used in a car's heatmanagement system and the high-wear resistance bearing steel that's needed for electric motors. The list goes on. With expectations for around 300 million NEVs on China's roads by 2040, people could expect more policy initiatives to shore up supply lines.

EV Players in China According a Ries& Ries report, in China, the EV market is mostly in the hands of the following companies: • BYD (24.9%) • SGMW (8.5%) • Chery (5.3%)

The Story of 2019-2020 Once subsidies reduced for EV cars in mid of 2019, the market of EV cars declined 50% in July 2019 in China. Based on this reason, most EV manufacturers didn't reach to their specified goals. For example, WEY had a sales goal for 100K EV but they could only reach the sales of 17K in that year. On the other hand, small-size EV manufacturers could cope with the issue in the 3rd quarter of 2019, because they could upgrade their EVs charge to over 250 kilometres, hence, their EV sales increased by 20% in November and 70% in December month on month.

Small-size EVs share 20% of the total EV market and are mostly used in small cities of China. Because of the Covid pandemic, the subsidies of EVs returned back for two years and Chinese government announced that the subsidies would be allocated to improve infrastructures.

• Tesla (5.2%) • SAIC (4.5%) BYD is the largest EV manufacturer in China.

It has stopped its pure engine car production line and focused on EVs and Plug-in hybrid vehicles.

Based on this decision its hybrid cars use small engines. Toyota has partnered with Chinese BYD since December 2021 for producing a new type of affordable electric cars scheduled to be launched in the end of 2022. The price range will be around $30,000. The total revenue of BYD at the end of the third quarter of 2021 was USD 24.1 billion and in the previous year its revenue was USD 25.7 billion.

Industry Focus >> Key Points of the EV Market in China

in order to expand its Giga-Factory China in November 2021 and it will hire 4,000 people.

•

Geely auto and Inchcape signed a global partnership in July 2021 in order to jointly explore business in Chile. Since February 2021 Geely has partnered with Volvo Groups in order to maximize the strengths of the Swedish and Chinese Automotive Groups, autonomous drive technologies, and sharing of EV architecture.

•

NIO day 2020 was held in Chengdu. NIO has launched its first autonomous driving model, NIO ET7, a smart electric flagship sedan. The ET7 will range from USD 70,000 or from USD 59,000 with BaaS (Battery as a Service). NIO is set to expand for the first time out of its home country, starting with a launch of electric vehicles in May 2021 in Norway.

•

Ford has signed a joint venture with China's Zotye Automobile. They will invest $756 million in a 50-50 venture and they will produce small electric cars.

1. The Price and Driving Range of EVs are Improving C h i n e s e c o n s u m e r s h ave t h r e e main concerns about EVs: their high price, their limited driving range and the dearth of charging points. Price sensitivity remains high, as shown by the abrupt fall in EV sales in mid-2019 when the government cut price support levels.

2. New Models Have been a Game-Changer New EV models are being launched, i ncludi ng t hose f rom t raditiona l ca r ma nu fa ct u rer s, i nc rea si ng t he competition among brands and also giving consumers more choices. The entrance of Tesla's Model 3, one of the best-selling electric vehicles in China, has been a game-changer for the industry. Tesla's success bolstered the business case for domestic EV start-ups such as NIO, Xpeng and Li Auto, while sending traditional auto manufacturers back to the drawing board to design EVs from scratch.

Chinese consumers view EVs very differently from Europeans, whose focus is on their environmentally friendly c r e d e nt i a ls. By c ont r a st , C h i n e s e consumers are more heavily influenced by the smart technology, or‘ vehicle smartisation’, that EVs offer. And, this trend could tilt the market decisively in favour of EVs, particularly once price parity with conventional cars is reached, which is expected within the next five years.

2022

EV Market Trend 2021-

•

Xiaomi is the other player in this industry that it has entered the EV market in March 2021, and its plan for investing is 10 billion USD that is injected to the company within 10 years.

•

Tesla has invested $200 million USD

Hardware & Fastener Components - no.54/2022

3. Vehicle Smartisation

077

《21世紀汽車革命》帶給我們的啟示

Special Feature >>

Locked on

鎖定「輕量化」與「客製化」掌握電動車扣件商機

“Lightweighting” & “Customization” — Business Opportunities in EV Fasteners Reflection on Mario Herger’s Book on EVs

by Dean Tseng, Fastener World 2020 is the boom year of electric vehicles (EVs) which burst in both production and sales in the last two pandemic years. EVs are an unstoppable force despite the fact that this spring is complicated by the abrupt and unpredictable Russia-Ukraine war leading to exponential price rise in steel, nickel (battery material), and aluminum (lightweight components material).

There are 1,400 EVs on the road in the U.S., as well as 1,000 companies developing self-driving technology. In a global perspective, at least 6 self-driving taxi fleets are in trial run and could be officially on the road in 2030. Furthermore, General Motors announced the plan to only sell carbon-free vehicles by 2035.

The EV evolution could very likely overturn the market in fleeting years. Besides a change in everyday life, there will be a ripple effect in the fastener industry’s supply to the automotive market. A gasoline-powered vehicle uses about 2,000 screws. Converting to an EV will reduce 30% of total fasteners used which is around 600 pieces. In light of this, Fastener World picked the book — "The Last Driver’s License Holder Has Already Been Born: How Rapid Advances in Automotive Technology will Disrupt Life as We Know It and Why This is a Good Thing", written by Mario Herger, founder and CEO of Enterprise Garage Consultancy, as our book review for the month.

The World in the 2nd Car Revolution

Hardware & Fastener Components - no.54/2022

Mario proclaims in his book that the automotive era as we know it is coming to an end and we are in the second car revolution, and he says it is happening right now! The emergence of Tesla represents “disruptive innovation”. He quotes Harvard professor Clayton Christensen’s study and writes that 50% to 80% of companies used to be the top and are no longer so after two to three decades of disruptive innovation. This phenomenon could also occur in the automotive industry. Although GM, Toyota and Volkswagen (giants from before the second car revolution) are trying to keep up in the EV field, Mario says those that can’t keep up will no longer be an independent company and could even disappear.

078

The conventional automakers’ mode of competition with opponents is the loop of losing and reclaiming a fraction of market shares.

With disruptive innovation staged by Elon Musk, Mario says it is not Tesla but the future that is impacting these automakers. Mario mentions Mercedes-Benz’s announcement to drop out of fuel cell development and its plan to roll out EVs this year (3 years ahead of schedule) are still 9 years behind Tesla, and he feels this giant automaker is on the precipice of approaching death. Following the plants in the U.S. and Shanghai, Tesla succeeds in making its physical presence with the official launch of a “gigafactory” in Berlin of Germany on March 22. As disruptive innovation seeps into Europe in a more powerful form, the European automakers now face the challenge which is this question: Is the automotive city Stuttgart following the footsteps of Detroit?

Mario quotes experts’ forecast that in as early as 2045 the last manned vehicles will disappear from the roads. This indicates that we as the current generation are likely to enter the era of full electrification and self-driving before our lives end, and this is not some distant imagination. Whether you are supplying fasteners to automotive companies or looking to tap into the automotive fastener market, are you equipped for transformation? Have you thought of how you should deploy for the future allout EV market? You should keep your eyes on the evolution of the EV market and its components.

Obsolete Components in EVs A gasoline-powered vehicle could use over 2,000 components, but an EV engine system uses only as many as 20 components or so. The gap between them is by 100 folds and with EV, the repair cost can go down by 30% to 90%. The book writes EVs have higher torque output and thus they don’t need gears and gearboxes to drive them forward. Other components that can be removed from EVs are oil hose, oil pump, filter, drive coupling, flywheel, internal combustion engine, radiator, exhaust system, fuel system, traditional dashboard, and center console between the two front seats. EVs don’t need to replace engine oil and they use motors to brake, so they won’t need spark plugs, seals and brake pads.

Hardware & Fastener Components no.54/2022

079

Special Feature >> 7%

Top 7 Manufacturers & Market Shares

Tesla tops EV sales chart in 2021, surpassing Volkswagen.

This has 3 implications. First, the space taken up by hefty components are now saved and gives way to a lighter vehicle and more room for designers to design the internal vehicle structure with flexibility. Second, the fasteners used with these components will be gone as well and it will impact fastener demand. However, when there is a minus side there will be a plus side, because thirdly, there will be a stark demand increase in fasteners for power supply systems including EV battery modules and wiring. This is the focal point that automotive fastener companies should be looking at.

Mario analyzes that some of the Tesla models use 16 battery modules consisting of 444 cylindrical batteries, with each row of batteries radiating heat through a cooling layer. This forms a battery box weighing as heavy as 100 kilograms. The bottom is attached with a metal plate to avoid puncture by outer objects. Totaling the weight of the batteries (318 kilograms), battery box, cooling liquid and other elements, a Tesla car can have a power supply system weighing up to half a ton. Therefore, EVs require lightweighting more than gasoline-powered vehicles do.

Lightweighting is the big pool of business opportunities that fastener companies should grasp as soon as possible.

Hardware & Fastener Components - no.54/2022

Special-Function Fasteners Development

080

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Although EVs can use some of the fasteners used on gasolinepowered vehicles, there are other EV components that require suppliers to develop fasteners with special functions. An example is a Japanese screw thread having asymmetrically aligned triangle slots for anti-loosening. It requires no nuts and can be installed in tight space, suitable for small components such as EV sensors. Another example is a lightweight aluminum screw developed for EVs, suitable for resin materials. Still another one is a high-tensile titanium screw that stretches and contracts like a spring under vibration to prevent loosening. Besides screws, there is a screw fastening device manufacturer developing products for Tesla. Some of the manufacturers observed that EVs require fastening fasteners in tight space and therefore require fasteners used with adhesives. This will also affect the development of fasteners. These manufacturers took the initiative to contact EV makers and ask how they could customize fasteners for EV designs. Additionally, fastener and related business owners are suggested to think about what kind of fasteners and fastening tools can improve EV power transmission and wiring and reduce the spending of time and labor.

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Fig. 1. Global EV Sales up 109% in 2021, Totaling 6.5 Million Units

(Source: Canalys)

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Fig. 2 Major Regions for EV Sales & Proportions in 2021

35% China Europe The U.S. Other Regions

(Source: Canalys)

Tesla now has physical presence in China and Europe, the top 2 sales markets for EVs.

Other Influences Beyond Fasteners Mario doesn’t just lock on EVs, but also on self-driving vehicles. The future self-driving vehicles will not have a gear box, as well as a steering wheel, pedals and other control components.

Connected to the Internet, self-driving vehicles can move in sync as a smart vehicle fleet. The car-to-car distance will remain unchanged and they will not need brake and acceleration.

With automatically controlled intersections, traffic signs and traffic lights will disappear, meaning that the demand for some infrastructure fasteners will also be gone. He warns that we are not slowly progressing to the new technology era, but we will probably have a head-on collision with it.

In addition, he mentions self-driving trucks will not require employing drivers and there will be no need to unload cargo from one vehicle of transport onto another. If future shipment uses unmanned self-driving, fastener business owners having purchased self-driving trucks will not have to employ drivers for delivery. We can let our imagination go further. In the future we could be seeing self-driving truck fleets, and what we have to do is to purchase auto cargo delivery service via a phone app.

There is another impact pertaining to a recent problem in Taiwan this year which is power supply. EV popularization could bring a new challenge for Taiwanese power plants because EVs use a lot of power to recharge and it will cast a huge load on the power grid. Will Taiwanese power plants be able to bear this high power volume and the impact from power outage? Also, there will be more and more employees using EVs to commute and factories will have to install more charging stations, which leads to additional setup costs. Furthermore, there are issues on raising the electricity prices in Taiwan. Although EV charging costs 5 times less than fueling up gasoline-powered vehicles, business owners still have to deliberately evaluate the increased power cost.

EVs are yet to popularize the whole planet but the development of special fasteners costs a lot of time and effort, so we have to deploy ahead right now. In fact, Taiwan has laid the foundation to embrace the business opportunities from EVs. We have worldclass electronics, semi-conductor and fastener technologies.

However, Taiwan’s transformation into high-end fasteners is not fast enough and high-end fasteners are still limited to the frontrow fastener companies, while others are still conventional. Hence, it is suggested that fastener associations in Taiwan can provide courses for members to get an insight on EVs and their potential business opportunities to prepare for the second car revolution.

Hardware & Fastener Components no.54/2022

081

Industry Focus >>

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Global Car Production and Sales

in 2021

2021全球汽車產銷統計

021 was a year full of various challenges to the global automotive industry. Production line stoppages, material supply shortages, and many other problems caused by the COVID pandemic have led to the insufficient capacities of many car manufacturers, which have been also worsened by the short supply of chips. In addition, the price hike of int’l crude oil and the regulations formulated by the EU, UK, USA, Japan and many other advanced countries aiming at gr adually making fuel vehicles withdraw from the market within a few years have both boosted the development of the EV industry. Several external factors all deeply influence the development and transformation of the supply chain of the automotive industry and are also closely tied with the future trends of the global automotive industry.

A

ccording to the detailed 2021 statistics of car production and sales in countries and regions OICA recently released, the originally expected pandemic-incurred declining car purchasing demand and slump in global car production did not happen and even appeared a slight growth, which is beyond everyone's expectations. The reasons are worth further observation and discussion in the future.

N

ow let's review together the global car production and sales statistics for 2021 below and compare them with those in 2019 and 2020 to observe if there is any changes and possible trends in the global automotive industry.

Hardware & Fastener Components - no.54/2022

In 2021, 80,145,988 units of vehicles were produced in the world, slightly up 3% from 2020; in terms of global sales, 82,684,788 units of vehicles were sold, slightly up 5% from 2020 but still below the production and sales recorded in 2019.

082

Below are the global car production and sales in 2019-2021:

Production in Europe (Incl. UK) Europe (incl. UK) is the world’s 2nd largest ca r ma nu fact u r i ng a rea wit h t he a n nual production in 2021 reaching 16,330,509 units, only second to China. Compared with 2020, car production in Europe contracted by 4%. Top 5 manufacturers in Europe were Germany, Spain, France, Czech Rep., and Slovakia (representing 54% of Europe’s total). The country showing the most significant drop was Slovenia, while the country showing the most significant increase was Portugal. The total production in Europe was in a slight decline, making it the only region in the world appearing a drop.

Total Production World Motor Vehicle Production by Country/Region and Type

2021/2020

Regions/Countries

Q1-Q4 2019

Q1-Q4 2020

Q1-Q4 2021

EUROPE

21,575,118

16,942,248

16,330,509

-4%

4,947,316

3,742,570

3,308,692

-12%

Germany, cars and LCV only Spain

2,822,632

2,268,185

2,098,133

-8%

France, cars and LCV only

2,175,350

1,316,371

1,351,308

3%

Czech Republic

1,433,961

1,159,151

1,111,432

-4%

Slovakia

1,107,902

990,598

1,000,000

1%

United Kingdom

1,381,405

987,044

932,488

-6%

Italy

915,291

777,057

795,856

2%

Poland

649,864

451,382

439,421

-3%

Romania

490,412

438,107

420,755

-4%

Hungary

498,158

406,497

394,302

-3%

Portugal

345,688

264,236

289,954

10%

Industry Focus >> Production in Russia/Central Asia/E. Europe Production in Russia/Central Asia/E. Europe in 2021 reached over 3.2 million units, up 3% from 2020, not to mention that the production in this region appeared 3 consecutive years of growth since 2019. Nearly 50% of the region’s car manufacturing capacity was in Russia (around 1.57 million units and up 9% from 2020). Turkey, following after Russia, showed the record of nearly 1.3 million units, a slight 2% YoY drop. However, with the war between Russia and Ukraine which has been launched for months, sanctions from the West against Russia that made car manufacturers stop operation in Russia, plummeting depreciation of Ruble that weakened Russian people’s purchasing power and demand for new cars, it is estimated that Russia’s car production in 2022 may appear a significant drop and Turkey may take advantage of this opportunity to become the largest car manufacturing country in the region.

World Motor Vehicle Production by Country/Region and Type Regions/Countries

Q1-Q4 2021

2021/2020

Belgium

285,797

267,293

261,038

-2%

279,000

249,000

258,000

4%

Austria

179,400

125,000

136,700

9%

Netherlands, yearly only

176,113

127,058

105,458

-17%

Slovenia

199,114

141,714

95,797

-32%

Finland, cars only

114,785

86,270

93,172

8%

Serbia

35,120

23,375

21,263

-9%

CIS + Turkey

2,527,810

3,121,340

3,216,740

3%

Russia

1,719,146

1,435,551

1,566,317

9%

Turkey

1,461,244

1,297,878

1,276,140

-2%

Uzbekistan

277,967

284,885

241,649

-15%

Kazakhstan

49,400

74,831

92,417

24%

Belarus, cars only

20,427

21,295

29,891

40%

Ukraine

7,266

4,951

8,153

65%

Azerbaijan, cars only

2,360

1,949

2,173

12%

AMERICA

20,160,401

15,692,927

16,151,639

3%

NAFTA

16,822,606

13,374,404

13,427,869

0%

USA

10,892,884

8,821,026

9,167,214

4%

Mexico

4,013,137

3,177,251

3,145,653

-1%

Canada

1,916,585

1,376,127

1,115,002

-19%

South America

3,337,795

2,318,523

2,723,770

18%

Brazil

2,944,988

2,014,055

2,248,253

12%

314,787

257,187

434,753

69%

Colombia

Hardware & Fastener Components - no.54/2022

Q1-Q4 2020

Sweden, yearly only

Argentina, cars and LCV only

084

Q1-Q4 2019

78,020

47,281

40,764

-14%

ASIA-OCEANIA

49,333,841

44,276,549

46,732,785

6%

China

25,750,650

25,225,242

26,082,220

3%

Japan

9,684,507

8,067,943

7,846,955

-3% 30%

India

4,524,366

3,381,819

4,399,112

South Korea

3,950,614

3,506,774

3,462,404

-1%

Thailand

2,013,710

1,427,074

1,685,705

18%

Indonesia

63%

1,286,848

690,176

1,121,967

Iran, yearly only

821,060

880,997

894,298

2%

Malaysia

571,632

485,186

481,651

-1%

Taiwan

251,304

245,615

265,320

8%

Pakistan

186,751

117,375

238,702

103%

Vietnam, yearly only

176,203

165,568

163,250

-1%

Philippines, yearly only

95,094

67,297

83,852

25%

Australia, yearly only

5,606

4,730

5,391

14%

Myanmar, yearly only

15,496

10,753

1,957

-82%

1,113,651

800,001

931,056

16%

South Africa

AFRICA

631,921

447,213

499,087

12%

Morocco

403,218

328,280

403,007

23%

Egypt, yearly only

18,500

23,754

23,754

0%

Algeria

60,012

754

5,208

591%

TOTAL

92,183,011

77,711,725

80,145,988

3%

Production in America America was the world’s 3rd largest car manufacturing continent. Being very close to its European counterpart, car production in America in 2021; reached 16,151,639 units, a slight 3% growth from 2020. Different from Europe’s 3 consecutive years of decline in car production, America appeared a significant drop in production in 2020, however, it rose again in 2021, but was still below 2019’s record. The U.S., Mexico, and Canada in N. America, as well as Brazil in S. America are the 4 largest car manufacturing countries in the region. Among these 4 countries, the U.S. showed the highest production record at more than 9 million units (around 56% of America’s total). On the other hand, Argentina appeared the highest growth at 69%, though its production was comparatively low.

Production in Asia/the Oceania In 2021, nearly 47 million units of vehicles were produced in Asia/the Oceania, up 6% from 2020, making this region the world’s largest car manufacturing heartland. China, in particular, represented over 55% of the region's total and showed the annual production of over 26 million units. Following after China, Japan, India, S. Korea, Thailand, and Indonesia were also the top car manufacturing countries in the region. Compa red to the respective 3% and 1% YoY drop in Japan and S. Korea, Indonesia, India, and Thailand all appeared the YoY growths of 63%, 30%, and 18%, respectively. In the entire Asia/the Oceania, Pakistan appeared the highest YoY growth of 103%, while Myanmar appeared the lowest one at -82% (probably due to the political chaos last year). What’s worth mentioning is that, although Vietnam has been one of the investment focuses of many foreign investors, its conditions and scale of car production seem to be not quite mature yet.

Production in Africa Africa’s share in the global car production is quite low. Although in 2019 its production exceeded a million units, its production scale

Industry Focus >> has dropped to below a million units since 2020. However, its production of around 930 thousand units in 2021 was still 16% higher than the record in 2020. Major car manufacturing countries in this region were South Africa and Morocco and both countries appeared two-digit YoY growths. Other countries such as Egypt and Algeria also produced certain units of vehicles, but the volumes were quite low.

Registrations or Sales of New Vehicles - All Types

Hardware & Fastener Components - no.54/2022

Regions/Countries

086

Q1-Q4 2019

Q1-Q4 2020

Q1-Q4 2021

2021/2020

EUROPE

20,930,716

16,712,898

16,874,893

1%

Germany

4,017,059

3,266,759

2,973,319

-9%

France

2,755,728

2,100,030

2,142,284

2%

United Kingdom

2,736,559

1,964,660

2,044,091

4%

Italy

2,132,630

1,564,756

1,664,483

6%

Spain

0%

1,501,244

1,030,746

1,034,063

Poland

656,258

510,153

554,613

9%

Belgium

642,000

509,994

462,536

-9%

Netherlands

538,739

427,162

405,061

-5%

Sweden

418,478

330,215

343,880

4%

Austria

371,934

301,617

306,176

2%

Switzerland

352,968

269,391

272,249

1%

Other Countries

285,560

215,910

237,203

10%

Czech Republic

281,423

228,834

236,221

3%

Denmark

264,073

233,271

221,937

-5%

Norway

189,824

180,592

217,572

20%

Portugal

265,827

173,989

183,390

5% -2%

Hungary

190,090

153,978

150,387

Romania

189,504

145,507

144,222

-1%

Ireland

145,104

112,122

136,126

21%

Finland

133,505

112,988

115,291

2%

Greece

122,990

88,710

112,364

27%

Slovakia

113,863

84,909

87,349

3%

Croatia

73,862

43,800

54,330

24%

Bulgaria

44,977

29,663

34,472

16%

RUSSIA, TURKEY & OTHER EUROPE

2,506,517

2,633,142

2,741,274

4%

Russia

1,778,841

1,631,163

1,741,965

7%

Turkey

491,947

796,150

772,722

-3%

Ukraine

102,542

98,986

121,772

23%

Other Countries/Regions

133,187

106,843

96,819

-9%

AMERICA

25,384,924

20,814,832

22,001,152

6%

NAFTA

20,824,602

17,445,480

18,160,120

4%

United States Of America

17,488,154

14,881,356

15,408,565

4%

Canada

1,976,440

1,586,474

1,704,850

7%

Mexico

1,360,008

977,650

1,046,705

7%

CENTRAL & SOUTH AMERICA

4,560,322

3,369,352

3,841,032

14%

Brazil

2,787,850

2,058,437

2,119,851

3%

Chile

348,575

258,835

415,582

61%

Argentina

452,200

334,316

370,283

11%

Other Countries/Regions

346,376

253,970

337,911

33%

Colombia

248,689

173,121

229,493

33%

Peru

155,507

108,999

152,856

40%

Ecuador

119,197

78,187

109,707

40%

Puerto Rico

101,928

103,487

105,349

2%

Sales in Europe (Incl. UK) I n t he previous pa rag raphs, we mentioned that Europe was the world’s 2nd largest car manufacturing region.

However, in terms of Europe’ s sales, its performance was still behind America and was in the 3rd place. Its sales in 2021 reached around 16.9 million units, a slight 1% growth from 2020. Top 5 car sales markets in Europe were Germany, France, UK, Italy, and Spain (Germany, France and UK shared over 42% of the Europe’s total car sales). Among these 5 countries, except that Germany with the top sales record appeared a 9% YoY drop from 2020, the other countries all appeared a growth in the range of 0-6%.

Sales in Russia/ E. Europe/Turkey Car sales in Russia/E. Europe/Turkey reached 2.74 million units in 2021, up 4% from 2020. Sales in this region were mainly concentrated in Russia and reached 1.74 million units. So far, Russia has been the world’s 9th largest car sales market.

Turkey was the 2nd largest car sales market in the region, but sales in Turkey dropped by 3% f rom 2020. T he 3rd ca r sales market in the region, Ukraine, appeared a significant 23% YoY growth in 2021.

However, with Russian invasion of Ukraine in the beginning of this year, economic activities in Ukraine almost stagnated. As a result, car sales in Ukraine may appear a significant decline and it may take a long period of time for full recovery.

Sales in America In 2021, more than 22 million units of vehicles were sold in America, up 6% from 2020. Over 70% of America’ s sales were in the U.S. Brazil was in the 2nd place with the sales of around 2.12 million units, better than Canada’s 1.7 million units and Mexico’s 1.05 million units.

Other countries such as Chile, Argentina, Colombia, Peru, Ecuador, Puerto Rico, though with a smaller market scale, were still major car sales markets in the region.

Compared with 2020, car sales in all S. American countries appeared growth.

Sales in Asia/the Oceania T he sa me as production, ca r sales in Asia /the Oceania have been in the

Industry Focus >> Registrations or Sales of New Vehicles - All Types Regions/Countries

unbeatable 1st place in the world for years. Its sales in 2021 were around 42.66 million units (up 6% from 2020) and this figure was even much higher than the total sales in Europe and America. Top 5 car sales markets in this region were China (26.27 million units), Japan (4.45 million units), India (3.76 million units), S. Korea (1.73 million units) and Australia (1.05 million units). During 2019-2021, China being the world’s largest car sales market even appeared consecutive years of growth and its YoY growth in 2021 was 4%. India among the top 5 sales markets appeared the most significant YoY growth at 28%.

If such a growing trend continues, India is very likely to outpace Japan within a few years to become the 2nd largest car sales market in Asia/the Oceania.

Sales in Africa Car sales in Africa in 2021 reached around 1.15 million units, up 24% from 2020. Major ca r sales ma rkets were South Africa, Egypt, and Morocco. The production of South Africa was similar to its sales. As for Egypt, its car production was comparatively low (only 23,000 units), but its car sales reached nearly 0.3 million units, higher than the scale of Morocco.

Hardware & Fastener Components - no.54/2022

Conclusions

088

Q1-Q4 2019

Q1-Q4 2020

Q1-Q4 2021

ASIA/OCEANIA/MIDDLE EAST

43,713,696

40,322,544

42,663,736

2021/2020

6%

China

25,796,931

25,311,069

26,274,820

4%

Japan

5,195,216

4,598,615

4,448,340

-3% 28%

India

3,816,858

2,938,575

3,759,398

South Korea

1,795,134

1,905,972

1,734,581

-9%

Australia

1,062,867

916,968

1,049,831

14%

Indonesia

1,030,486

532,077

887,205

67%

Thailand

1,007,552

792,146

748,580

-5%

Saudi Arabia

533,904

452,544

556,559

23%

Malaysia

604,287

529,434

508,911

-4%

Other Countries/Regions

534,707

399,580

435,754

9%

Taiwan

425,000

444,161

422,000

-5%

Israel

268,220

226,338

306,012

35%

Philippines

410,406

244,178

286,734

17%

Vietnam

281,262

262,823

260,850

-1%

Pakistan

187,714

124,429

237,424

91%

United Arab Emirates

232,305

158,711

188,844

19%

Uzbekistan

197,103

195,000

184,500

-5%

New Zealand

149,293

115,435

159,636

38%

Kazakhstan*

71,818

89,202

113,600

27%

Kuwait

112,633

85,287

100,157

17%

AFRICA

1,197,846

924,046

1,145,007

24%

South Africa

532,898

372,633

464,493

25%

Egypt

170,568

219,732

277,805

26%

Other Countries/Regions

328,464

198,373

227,274

15%

Morocco ALL COUNTRIES/REGIONS

165,916

133,308

175,435

32%

91,227,182

78,774,320

82,684,788

5%

Observing the global car production and sales, we found that the global automotive industry faced the severe pandemic in 2020 and the pandemic-incurred side effects also made the production and sales to drop slightly. However, starting from 2021, the industry appeared gradual recovery again and both production and sales returned to the level of 80 million units (although still below the record in 2019, the growing trend continues). Germany, France, Spain, and Italy of W. Europe, UK, Czech Rep. and Slovakia of E. Europe, China, Japan, India, S. Korea, and Thailand of Asia, the U.S., Mexico, Canada, and Brazil of America, Russia, and Turkey are all the world’s major car production and sales markets. The author thinks that if the global pandemic could be gradually under control after 2023 and more countries open their borders, many problems the industry is facing will be fixed in the end. In addition, if the technology and construction of infrastructure of EV can make a significant breakthrough, people will be more willing to replace their old cars with new ones, which will boost the market demand and purchasing power, then the global car production and sales are very likely to reach the mark of 0.1 bn units within 2-3 years.

Hardware & Fastener Components no.54/2022

089

Industry Focus >>

剖析東協電動車市場

An Analysis of

ASEAN Electric Vehicles Market

by Behrooz Lotfian

Hardware & Fastener Components - no.54/2022

Why is EV Necessary for ASEAN?1

090

The energy demand in the transportation sector is increasing and the transportation sector currently emits a high amount of greenhouse gases. Electric vehicles (EVs) were introduced to mitigate these emissions of greenhouse gases. EVs are well-deployed in leading countries/ regions such as China, Europe, and the United States due to EV-friendly policies and well-planned EV charging infrastructure. Association of Southeast Asian Nations (ASEAN) follows these leading countries and aims to become the next EV hub. Effective deployment of EVs requires involvement from governments and willing consumers that push EVs into communities. A survey was carried out among policymakers, manufacturers, and academia to determine suitable policies and financial incentives to increase the deployment of EVs in the market. The survey also included the hurdles and issues faced by the community to adopt EVs and identified that high purchase cost and charging issues are Association of Southeast Asian Nations hampering EV deployment in ASEAN. EV-friendly policies and financial (ASEAN) aims to become the next EV hub. incentives were suggested in the survey and will be a good reference material for EV manufacturers and policymakers in ASEAN.

ASEAN Countries and the EV Market Thailand Thai auto market remained in a state of contraction in 2021, with the FTI forecasting its total annual car sales to be 750,000 units, a drop from 792,000 units in 2020, largely due to a weak economic outlook caused by the ongoing pandemic.

Thai auto market was refreshed in late 2021, with December vehicle sales likely to see a boost after Chinese automaker Great Wall Motor launched a 100% electric vehicle at a competitive price (Ora Good Cat, priced from $29,300 to $35,200). The pressure on Japanese manufacturers in the markets that have so far dominated the entire vehicle market is likely to intensify; hence Japan responded:2 •

Toyota launched its Cross Hybrid model, priced at $35.600,

•

Mitsubishi debuted a plug-in hybrid, the Outlander PHEV, at $51,800.

Thailand plans to attract 400 billion baht (US$12.08 billion) in investments over the coming years and support the production of 1.2 million EVs and 690 charging stations by 2036.3

Hardware & Fastener Components no.54/2022

091

Industry Focus >> Singapore

Indonesia

Singaporean electric vehicle (EV) population was more than doubled last year, growing from 1,397 vehicles at the end of 2020 to 3,713 vehicles at the end of 2021.4 Tesla EV sales boom in Singapore, pushing rivals' models off the streets. Tesla's most basic Model 3 costs nearly $148,300 in Singapore, largely due to an ownership levy, compared with less than $40,000 in the United States.5

According to Gaikindo's report on EV sales in Indonesia in 2019-2021, only 705 total sales were recorded in 2019, with hybrid sales recorded at 685 units and PHEV (Plug-in Hybrid Electric Vehicle) sales at 20. As of June 2021, the number of electric vehicle sales in Indonesia totalled 1,900 units. This total includes 1,378 (72.5%) hybrid models, 34 (1.8%) PHEV units, and 488 (25.7%) BEV units.

When viewed from the total sales of cars in Indonesia in the first semester of 2021, the interest in the electric vehicle market is at 0.5% of total cars sold. These figures show that the Indonesian EV sector is still in its infancy. However, it also shows that the market interest has grown significantly. Considering the country’s rapid pace of urbanization and the significant share of youths in the country’s demographic, there is no question that the interest in EV will only rise as the Indonesian society moves towards a more sustainable lifestyle.7 The Indonesian electric vehicle market is highly concentrated at its early growth stage. The main reasons include limited selectivity, high price barriers, and the dependence of internal combustion engines. Major market contributors include GESITS (a local electric two-wheeler motorcycle start-up), Mitsubishi (a leader in the electric passenger vehicle market), and BYD (a leader in both electric public buses and electric public taxis).8

Singapore made a great push for electric veh icle ( EV ) a dopt ion i n 2021 wit h t he Government unveiling several schemes to encourage consumers make the switch.

Singapore will set aside $30 million over the next five years for EVrelated initiatives, such as measures to improve charging provision at private premises. EV sales are expected to continue to grow at an average annual rate of 40% YoY from 2022-2030 to reach an annual sales volume high of just under 7,000 units and an EV-penetration rate of around 9.6% of total vehicle sales.6

Indonesia has an ambitious plan to become a major player in the global EV market, and it has developed a US$17 billion roadmap for this specific sector. This roadmap aims to reach an adoption of 2.1 million electric motorcycle and 400,000 electric cars – of which 20% are locally manufactured by 2025. Indonesia EV projects require much foreign investment support9, and therefore, global electric vehicle companies should invest in Indonesia’s EV sector for huge opportunities.

Malaysia The size of Malaysian electric vehicle market was valued at USD 13.82 million. In 2020 the total revenue is expected to grow at 12.46 % through 2021 to 2027, Malaysian electric vehicle market value is reaching nearly USD 31.44 million. Malaysia's new vehicle sales or total industry volume (TIV) eased 3.9 percent (or 20,603 units) to 508,911 units in 2021 from 529,514 units registered in 2020. Of this, passenger vehicles (PV) accounted for 452,663 units and commercial vehicles (CV) comprised 56,248 units, according to the latest data by the Malaysian Automotive Association (MAA).10

Hardware & Fastener Components - no.54/2022

The government had planned to fully exempt import and excise duties as well as sales tax for EVs with a road tax exemption of up to 100 percent, individual income tax relief of up to RM2,500 on the cost of purchase, installation, rent, hire purchase as well as subscription fees for EV charging facilities.

092

Overlook to ASEAN EV Market The ASEAN electric vehicle market was valued at USD 498.93 million in 2021 and is expected to reach USD 2,665.3 million by 2027, registering a CAGR of 32.73% during the forecast period (2022 - 2027).11

1

https://aseanenergy.org/elec tric-vehicle-adoption-in-asean-prospect-and-challenges/

2

https://asia.nikkei.com/Business/Automobiles/Thai-EV-market-heats-up-as-Chinese-player-enters-with-low-prices

3

https://www.aseanbriefing.com/news/thailand-issues-new-incentive-package-for-electric-vehicle-industry/

4

https://www.straitstimes.com/singapore/growing-interest-in-electric-vehicles-whats-next-for-singapore

5

https://www.reuters.com/business/autos-transportation/tesla-ev-sales-boom-singapore-pushing-rivals-models-off-streets-2021-10-28/

6

https://sbr.com.sg/transport-logistics/news/electric-vehicle-sales-boom-imminent-in-singapore-fitch

7

https://indonesien.ahk.de/infothek/news/news-details/indonesian-electric-vehicles-industry-development-gains-momentum

8

https://www.globenewswire.com/news-release/2020/09/18/2095767/28124/en/Indonesian-Electric-Vehicle-EV-Market-Analysis-Growth-Opportunities-Fuel-the-Growth-Pipeline-Engine.html

9

https://www.cekindo.com/blog/investing-indonesia-battery-electric-vehicle

10

https://www.nst.com.my/business/2022/01/764463/malaysias-2021-new-vehicle-sales-slip-39pct-508911-units-maa

11

https://www.mordorintelligence.com/industry-reports/asean-electric-vehicle-market#:~:text=Market%20Overview,period%20(2022%20%2D%202027).

Hardware & Fastener Components no.54/2022

093

Industry Focus >>

美國電動車市場分析

An Analysis of

U.S. Electric Vehicles Market

by Shervin Shahidi Hamedani

Introduction The global Electric Vehicle (EV) market share has taken a terrific leap forward in the past decade, and the trend is expected to grow faster. Shifting to all-electric options in hopes of creating a cleaner and more environmentally sustainable world. In terms of sales, the global electric vehicles market has experienced a tremendous increase, but still the trends show that, we have only seen a fraction of vast potential of this market. Studies estimate that global EV market will hit 10% of global passenger vehicle sales by 2025, 28% by 2030 and 58% by 2040.

Chart 1.

094

The key players of this market are China, Europe, and the US. China is anticipated to hold 49% of the global EV market while Europe is likely to account for 27%. The US will hold 14% by 2030. Chart 1 below exhibits the monthly sales of electric cars in major car markets (China, Europe and the US) in 2021 and in comparison with 2020.

1000 900 800 700 600 China

500

Europe

400

The U.S.

300 200 100

Dec-21

Oct-21

Nov-21

Sep-21

Aug-21

Jul-21

Jun-21

Apr-21

May-21

Feb-21

Mar-21

Jan-21

Dec-20

Oct-20

Nov-20

Sep-20

Aug-20

Jul-20

Jun-20

Apr-20

May-20

Feb-20

Mar-20

0 Jan-20

Hardware & Fastener Components - no.54/2022

Monthly Sales of Electric Cars in Major Car Markets in 2021 and in Comparison with 2020.

(Unit in thousand vehicles)

As derived from the chart, the highest sales in the US was in Dec last year, with 84,000 electric cars and the lowest sales registered in Jan 2021. Altogether this implies an upward trend in electric cars sales in the US. Overall, in terms of EV’s market size, the growth has been particularly remarkable over the last three years, even as the global pandemic contracted the market for conventional vehicles and as manufacturers star ted dealing with supply chain holdups.

Industry Focus >> In 2019, 2.2 million electric cars were sold, representing just 2.5% of global car sales. In 2020, the overall car market contracted but electric car sales experienced a growth, climbing to 3 million and representing 4.1% of total car sales. In 2021, electric car sales were more than doubled to 6.6 million, representing close to 9% of the global car market and more than tripling their market share from two years earlier. All the net growth in global car sales in 2021 came from electric cars.

The US Market While the US lags behind China and the European Union is in its transition to EVs, the US is implementing procedures that would benefit the adoption in the near future. The U.S. electric vehicle market size was USD 24.03 billion in 2020 and it’ s expected to grow to USD 137.43 billion in 2028 at a CAGR of 25.4% in the 2021-2028 period.

Plans to construct a nationwide network of charging stations and improving EV batteries are currently being implemented. The US government has promised to set up 50,000 individual chargers, which is five times more than the current number, in 28,000 new charging stations by 2030, and this is expected to meet half the country’s charging demands. This is in line with the government’s plan addressing climate change and addressing the needs of environmental justice communities in the United States as their two important priorities.

The Biden administration has concurrently taken substantial steps to build new regulatory programs not only to restore the environmental protections cancelled during Trump’s presidency, but to substitute them with even more determined requirements. Therefore, the US would focus further on sustainable development matters over the coming years, which will be favourable for EV adoption.

Last year, the country made an impressive return to the electric car market as sales were more than doubled to surpass half a million.

The overall US car market recovered as well, but electric cars doubled their share to 4.5%. Chart 2 below illustrates electric cars sales in the country within the last two years.

sales of new light-duty plug-in electric vehicles, including all-electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs), almost doubled from 308,000 in 2020 to 608,000 in 2021. EV sales accounted for 73% of all plug-in electric vehicle sales in 2021. EV sales raised by 85% from 2020 to 2021, while sales of PHEVs were more than doubled, with an increase of 138% over the previous year. The fast increase in plug-in electric vehicle sales from 2020 to 2021 is outstanding in the context of overall light-duty vehicle sales, which increased by only 3% during the same period.

Hybrid, plug-in hybrid, and electric vehicle sales in the United States have increased in recent months as sales of non-hybrid internal combustion engine (ICE) vehicles fuelled by gasoline or diesel decreased. In the fourth quarter of 2021, hybrid, plugin hybrid, and electric vehicles collectively accounted for 11% of light-duty vehicle sales in the United States, according to data from Wards Intelligence.

Sales of several existing hybrid, plug-in hybrid, and electric models increased in 2021, but a large portion of the sales increase came from new manufacturer offerings across different market segments. Manufacturers increased the number of non-hybrid ICE vehicle models by 49 in 2021, versus an increase of 126 for hybrid and electric vehicle models.

These additional hybrid or electric models were mostly either crossover vehicles, which combine attributes of passenger cars and sport utility vehicles, or vehicles such as vans and pickups, which previously didn’t have many hybrid or electric vehicle options.

Manufacturers of hybrid vehicles and plug-in vehicles have expanded into market segments such as crossovers, vans, and pickups following consumer preference for larger vehicles. Within each electric or hybrid powertrain type, crossover vehicles now account for most sales.

Based on the report from United States Department of Energy,

Thousand Electric Cars

74

66

69

55 48

42 28

35 36

29

25

US

Dec-21

Oct-21

Nov-21

Sep-21

Jul-21

Aug-21

Jun-21

Apr-21

May-21

Mar-21

Jan-21

Feb-21

Dec-20

Oct-20

Nov-20

Sep-20

Jul-20

Aug-20

Jun-20

Apr-20

42

16 May-20

10 Mar-20

Jan-20

16 Feb-20

15

28 27

55 57

54 55

36

Chart 2.

U.S. Electric Cars Sales in 2020-2021

In summary, the evolution to EVs has kept its momentum as the country progressively develops and implements policies to speed up growth in EV. Promotion activities and government policies are assisting to overcome major consumer barriers related to vehicle range, higher upfront costs, inadequate model availability, and lack of awareness.

These factors will influence the U.S. electric vehicle market forecast.

Sources: • • • • • •

Electric vehicles, driving towards the future, by The Edge Markets.

Electric cars fend of f supply challenges to more than double global sales, by iea.org New Plug-in Electric Vehicle Sales in the United States Nearly Doubled from 2020 to 2021, by energy.gov IEA, Monthly sales of electric cars in major car markets, 2021 compared with 2020, IEA, Paris https://www.iea.org/data-andstatistics/charts/monthly-sales-of-electric-cars-in-major-car-markets-2021-compared-with-2020* Electric vehicles and hybrids surpass 10% of U.S. light-duty vehicle sales, US Energy Information Administration U.S. Electric Vehicle Market Size, Share & COVID-19 Impact Analysis, By Vehicle Type and Regional Forecast, 2021-2028, Fortune Business Insights

Hardware & Fastener Components - no.54/2022

84

095

Industry Focus >>

by Sabrina Rodriguez

2021美國與中台緊固工具貿易分析

U.S. Fastening Tools Trade with China and Taiwan during 2021 What percentage of hand tools does the U.S. import from China and Taiwan?

Has hand tool trade between the U.S. and China and Taiwan stabilized in 2021 in comparison to 2020? Finally, are hand tool imports decreasing during the first months of 2022 due to the newly enforced shutdowns in China?

Data note: The data for this article is derived from Descartes™ Datamyne’ s US Census trade statistics. US Census trade statistics analysis import and export on all modes of transportation.

That value is calculated in USD by general CIF for imports and FOB for exports. Hand tools in this article are defined as any product under HS Code 8203 (files, rasps, pliers, pincers, metal cutting shears, pipe cutters, bolt cutters and similar hand tools), HS Code 8204 (hand-operated spanners and wrenches, including torque meter wrenches (not tap wrenches), socket wrenches), HS Code 8205 (hand tools others, blow torches, vises, clamps and the like), and HS Code 8207 (interchangeable tools for hand tools (power operated or not) or for machine-tools, not including dies for extruding metal).

US Imports of Fastening Tools

Hardware & Fastener Components - no.54/2022

2019 Country of Origin China

2,046,809,529.00

Taiwan

%

General Total Value CIF (USD)

%

General Quantity

%

Volume Change

General Total Value CIF (USD)

%

General Quantity

%

General Total Value CIF (USD)

%

54.51 1,963,146,481.00

35.85 1,592,924,886.00

54.62 1,818,175,960.00

35.41 -453,884,643.00 -22.18 -144,970,521.00

547,974,709.00

14.60

696,929,743.00

12.73

466,925,532.00

16.01

763,334,951.00

14.87 -81,049,177.00 -14.80

Japan

51,586,081.00

1.38

633,835,751.00

11.58

25,154,930.00

0.87

548,906,925.00

10.69 -26,431,151.00 -51.24 -84,928,826.00 -13.40

Germany

138,806,017.00

3.70

544,617,204.00

9.95

61,181,706.00

2.10

434,167,619.00

8.46 -77,624,311.00 -55.93 -110,449,585.00 -20.29

Canada

102,789,016.00

2.74

271,616,373.00

4.96

49,078,645.00

1.69

253,130,796.00

4.93 -53,710,371.00 -52.26 -18,485,577.00

-6.81

S. Korea

19,897,405.00

0.53

266,399,745.00

4.87

18,978,273.00

0.66

303,552,228.00

5.92

-919,132.00

13.95

Mexico

414,117,672.00

11.03

192,813,900.00

3.53

409,713,366.00

14.05

155,363,839.00

3.03

-4,404,306.00

India

84,158,513.00

2.25

130,540,043.00

2.39

68,152,788.00

2.34

117,880,014.00

2.30 -16,005,725.00 -19.02 -12,660,029.00

-9.70

Italy

29,108,485.00

0.78

110,176,336.00

2.02

18,411,010.00

0.64

103,166,236.00

2.01 -10,697,475.00 -36.76

-6.37

United Kingdom

52,141,123.00

1.39

68,630,318.00

1.26

15,800,945.00

0.55

54,119,810.00

Total

098

General Quantity

2020

-4.62

66,405,208.00

37,152,483.00

-7.39 9.53

-1.07 -37,450,061.00 -19.43

-7,010,100.00

1.06 -36,340,178.00 -69.70 -14,510,508.00 -21.15

3,755,347,384.00 100.00 5,476,171,081.00 100.00 2,916,858,513.00 100.00 5,134,871,977.00 100.00 -838,488,871.00 -22.33 -341,299,104.00

-6.24

Industry Focus >> Prior to the start of the pandemic in early 2020, the U.S. imported a total value of 5.47 million USD of hand tools from its foreign trade partners around the world. Of those imported hand tools, nearly 36% of the value was imported from China, followed by nearly 13% from Taiwan. Other countries such as Germany, Japan and Canada made up the remaining 49%. For the majority of 2020 the pandemic caused unrest in the global shipping industry leading to supply chain shortages causing the total value of hand tool imports into the U.S to drop by 6.2% in value and about 22% in overall quantity. China hand tool exports to the U.S. dropped in value by 7.3% and a little over 22% in quantity. Meanwhile, Taiwan saw an increase in value of 9.5% in 2020, but a decrease in quantity of nearly 15%. While the pandemic remained a reality throughout 2021, global trade stabilized and overall demand for goods increased significantly. With the increased demand for housing and manufacturing in the U.S., it is believed that imports of raw materials, fasteners and hand tools were in high demand to keep up with the market demand. Understanding that China and Taiwan are the two most significant trading partners for the U.S., what can be interpreted given the 2021 U.S. imports of hand tools?

US Imports of Fastening Tools 2020 vs 2021 Country of Origin

2020 General Quantity

China

1,592,924,886.00

Taiwan

%

2021

General Total Value CIF (USD)

%

General Quantity

%

Volume Change

General Total Value CIF (USD)

%

General Quantity

%

General Total Value CIF (USD)

%

54.62 1,818,175,960.00

35.41 1,681,471,981.00

58.32 2,019,714,380.00

32.82

88,547,095.00

5.56

201,538,420.00

11.09

466,925,532.00

16.01

763,334,951.00

14.87

572,351,724.00

19.85 1,020,531,198.00

16.59

105,426,192.00

22.58

257,196,247.00

33.70

Japan

25,154,930.00

0.87

548,906,925.00

10.69

27,798,416.00

0.97

608,334,163.00

9.89

2,643,486.00

10.51

59,427,238.00

10.83

Germany

61,181,706.00

2.10

434,167,619.00

8.46

70,287,444.00

2.44

507,844,974.00

8.26

9,105,738.00

14.89

73,677,355.00

16.97

S. Korea

18,978,273.00

0.66

303,552,228.00

5.92

18,308,705.00

0.64

265,581,354.00

4.32

-669,568.00

-3.53

Canada

49,078,645.00

1.69

253,130,796.00

4.93

54,480,759.00

1.89

330,568,423.00

5.38

5,402,114.00

11.01

77,437,627.00

30.60

Mexico

409,713,366.00

14.05

155,363,839.00

3.03

43,887,804.00

1.53

190,474,149.00

3.10 -365,825,562.00 -89.29

35,110,310.00

22.60

India

68,152,788.00

2.34

117,880,014.00

2.30

111,382,090.00

3.87

196,279,245.00

3.19

43,229,302.00

63.43

78,399,231.00

66.51

Italy

18,411,010.00

0.64

103,166,236.00

2.01

19,699,411.00

0.69

135,861,927.00

2.21

1,288,401.00

7.00

32,695,691.00

31.70

Vietnam

48,653,125.00

1.67

54,609,348.00

1.07

157,007,931.00

5.45

149,045,445.00

2.43

Total

2,916,858,513.00 100.00 5,134,871,977.00 100.00 2,883,592,944.00 100.00 6,154,659,165.00 100.00

108,354,806.00 222.71 -33,265,569.00

-37,970,874.00 -12.51

94,436,097.00 172.94

-1.15 1,019,787,188.00

19.87

Imports of Fastening Tools from China 2021 HS 2021

Hardware & Fastener Components - no.54/2022

Product HS (6)

100

General Quantity

%

General Total Value CIF (USD)

%

820559 - Handtools Others, And Parts Thereof, Of Base Metal

297,789,484.00

17.72

286,516,936.00

14.19

820750 - Tools For Drilling, Other Than Rock Drilling, And Parts Thereof, Of Base Metal

226,004,531.00

13.45

271,563,663.00

13.45

820551 - Household Handtools Others, And Parts Thereof, Of Base Metal

204,100,076.00

12.14

235,211,023.00

11.65

2,210,680.00

0.14

191,661,616.00

9.49

48,874,639.00

2.91

166,351,597.00

8.24

289,739,795.00

17.24

125,310,422.00

6.21

55,186,746.00

3.29

116,734,901.00

5.78

820411 - Spanners And Wrenches, Hand-Operated, Non-Adjustable, And Parts Thereof, Of Base Metal

110,181,103.00

6.56

115,260,128.00

5.71

820420 - Socket Wrenches With Or Without Handles, Drives And Extensions, And Parts Thereof, Of Base Metal

145,694,223.00

8.67

90,320,610.00

4.48

820540 - Screwdrivers, And Parts Thereof, Of Base Metal

169,075,546.00

10.06

70,102,686.00

3.48

820730 - Tools For Pressing, Stamping Or Punching, And Parts Thereof, Of Base Metal 820320 - Pliers (Including Cutting Pliers), Pincers, Tweezers, And Similar Tools, And Parts Thereof, Of Base Metal 820790 - Interchangeable Tools Others, And Parts Thereof, Of Base Metal 820570 - Vises, Clamps And The Like, And Parts Thereof, Of Base Metal

Total

1,681,471,981.00 100.00 2,019,714,380.00 100.00

Main query filters: Product HS : 8203 - Files, Rasps, Pliers, Pincers, Metalcutting Shears, Pipe Cutters, Bolt Cutters And Similar Hand Tools, And Base Metal Parts Thereof Or 8204 - Hand-Operated Spanners And Wrenches, Including Torque Meter Wrenches (Not Tap Wrenches); Socket Wrenches, With Handles Etc. Or Not; Base Metal Parts Or 8207 - Interchangeable Tools For Handtools (Power-Operated Or Not) Or For MachineTools, Including Dies For Extruding Metal, And Base Metal Parts Thereof Or 8205 - Handtools Others; Blow Torches Etc.; Vises, Clamps And The Like Others; Anvils; Portable Forges; Grinding Wheels With Frameworks; Base Metal Parts

Hardware & Fastener Components no.54/2022

101

Industry Focus >> Imports of Fastening Tools from Taiwan in 2021 by District 2021 District of Entry

General Quantity

China Imports of Fastening Tools in 2021 by Top Product HS(6)

General Total Value CIF (USD)

%

%

Los Angeles, CA

478,064,603.00

28.44

436,982,655.00

21.64

New Orleans, LA

95,822,579.00

5.70

204,357,887.00

10.12

Savannah, GA

134,892,412.00

8.03

198,061,230.00

9.81

New York City, NY

150,850,940.00

8.98

164,995,966.00

8.17

99,838,755.00

5.94

143,310,406.00

7.10

Charleston, SC

139,728,953.00

8.31

118,866,381.00

5.89

Wilmington, NC

140,881,354.00

8.38

102,886,399.00

5.10

Cleveland, OH

38,772,899.00

2.31

94,595,524.00

4.69

Seattle, WA

47,548,373.00

2.83

76,399,039.00

3.79

Dallas-Fort Worth, TX

38,127,576.00

2.27

73,821,389.00

3.66

Chicago, IL

Total

1,681,471,981.00 100.00 2,019,714,380.00 100.00

Has China Remained the Leader in Hand Tool Exports to the U.S.?

During 2021, the U.S. imported a combined total of 6.15 billion USD worth of hand tools from its trading partners. China accounted for nearly 39% of the total value which was a little over 2 billion USD. In comparison to 2020, China exported a little over 200 million USD which amount to an 11% increase. The general quantity of hand tools being exported from China to the U.S. also increased by a total of 5.5%. Overall, general quantity of hand tool imports into the U.S. decreased by a little over 1% which is believed to be the residual effect of available supply not being able to keep up with the increased demand of hand tools. Over the course of 2021, Chinese hand tool exports decreased during the second quarter of the year to 470,412,012 USD from 478,892,273 USD during the first quarter. In the third quarter of the year the total value increased to 505,205,462, and then during the fourth quarter of the year there was the highest value of 565,204,63 USD. Given these trade data elements, it’s evident that China continued to be the leading trading partner for the U.S. by a little over 16% in 2021, followed by Taiwan which is the second largest trading partner for the U.S..

Of the different hand tool subsets, 820559 was in the greatest demand throughout 2021. 820559 accounted for over 14% of hand tool imports from China, followed by 820750 (over 13%) and 820551 (over 11%). Most hand tool imports from China entered the U.S. through the Los Angeles district ports (Port of Long Beach, Port of Los Angeles), followed by the New Orleans district and the Savannah district.

Imports of Fastening Tools from Taiwan in 2021 2021

Hardware & Fastener Components - no.54/2022

Product HS (6)

General Quantity

820420 - Socket Wrenches With Or Without Handles, Drives And Extensions, And Parts Thereof, Of Base Metal

General Total Value CIF (USD)

%

148,720,649.00

25.99

227,624,030.00

22.31

820559 - Handtools Others, And Parts Thereof, Of Base Metal

43,733,596.00

7.65

192,638,792.00

18.88

820411 - Spanners And Wrenches, Hand-Operated, Non-Adjustable, And Parts Thereof, Of Base Metal

69,343,731.00

12.12

117,353,988.00

11.50

115,020,035.00

20.10

103,588,387.00

10.16

67,071,618.00

11.72

93,200,872.00

9.14

820320 - Pliers (Including Cutting Pliers), Pincers, Tweezers, And Similar Tools, And Parts Thereof, Of Base Metal

6,733,046.00

1.18

62,255,033.00

6.11

820730 - Tools For Pressing, Stamping Or Punching, And Parts Thereof, Of Base Metal

1,513,507.00

0.27

41,657,093.00

4.09

820560 - Blow Torches And Similar Self-Contained Torches, And Parts Thereof, Of Base Metal

5,213,853.00

0.92

28,376,525.00

2.79

28,879,566.00

5.05

26,420,424.00

2.59

3,462,230.00

0.61

24,770,048.00

2.43

820790 - Interchangeable Tools Others, And Parts Thereof, Of Base Metal 820540 - Screwdrivers, And Parts Thereof, Of Base Metal

820570 - Vises, Clamps And The Like, And Parts Thereof, Of Base Metal 820520 - Hammers And Sledge Hammers And Parts Thereof, Of Base Metal Total

102

%

572,351,724.00 100.00 1,020,531,198.00 100.00

Industry Focus >> U.S. Hand Tool Imports from Taiwan Taiwan exported quantity of 572,351,724 in 2021 which was 22.5% higher than the total exported quantity in 2020. The imported value in 2021 increased by over 33% in comparison to 2022, or 257,196,247 USD. The overall increase of Taiwan’s hand tool Imports of Fastening Tools from Taiwan in 2021 by District exports to the U.S. and the way Taiwan was able to keep up 2021 with the U.S. demand for hand tools is likely due to Taiwan’s District of Entry response and navigation of the global pandemic. Unlike General Total General Quantity % % China’s quarterly values that both increased and decreased, Value CIF (USD) Taiwan exports to the U.S. were on a steady incline Los Angeles, CA 144,990,223.00 25.34 205,581,611.00 20.15 quarter over quarter during 2021. Taiwan began the year Savannah, GA 67,979,526.00 11.88 119,000,529.00 11.67 exporting a total of 213,291,765 USD during the first quarter, followed by 262,733,820 USD during the second quarter, Chicago, IL 56,887,006.00 9.94 108,079,379.00 10.60 258,449,236 USD in the third quarter and wrapped up the year Dallas-Fort Worth, TX 23,371,196.00 4.09 98,078,921.00 9.62 with a total of 286,056,377 USD during the last quarter. On the other hand, the total quantity of hand tools during the last New Orleans, LA 21,130,654.00 3.70 96,216,524.00 9.43 quarter of 2021 decreased by a little over 12% while prices for 2.04 59,717,679.00 5.86 Cleveland, OH 11,640,253.00 hand tools increased. This could be due to a decrease in supply which would have increased the prices of available hand tools.

Charleston, SC 40,416,076.00 7.07 54,498,543.00 5.35 Based on value, subset 820420 was the hand tool that was imported the most in 2021, followed by 820559 and 820411. Much like so many imports coming from different parts of Asia, hand tool imports from Taiwan were primarily imported through the district of Los Angeles, followed by Savannah and Chicago.

Seattle, WA

22,483,680.00

3.93

51,465,918.00

5.05

New York City, NY

35,621,069.00

6.23

41,198,616.00

4.04

Wilmington, NC

37,414,578.00

6.54

38,641,614.00

3.79

Total

572,351,724.00 100.00 1,020,531,198.00 100.00

2022 Imports from Taiwan and China: Is COVID-19 Impacting Trade Yet Again?

During the first two months of 2022, the U.S. has imported a combined value of 561,110,808 USD from China and Taiwan. Of that value, 67% was the total from China and nearly 33% was the total from Taiwan. For China, this total value is 22.5% higher and the overall quantity was 28% higher than during the first two months of 2021. This analysis is important to consider since there have been reports of lockdowns due to COVID-19 in China during the first months of 2022 which in turn could have impacted export trade to the U.S. and other countries. Taiwan exports to the U.S. have also increased during 2022; the total value increased during the first two months of 2022 by 40% and the quantity increased by 83.5%.

The U.S. continues to report record demand for most commodities which is requiring corporations to source from multiple trading partners to meet demands. While countries like China and Taiwan remain the largest trading partners based on value and volume, new trading partners are emerging to meet newly required supplies of goods. During the end of 2021 and beginning of 2022, port delays and congestions have become the new norm generating increased delays in the shipping world. There is a sense of normalcy and stability on the horizon which will hopefully stabilize the overall supply chain for years to come.

US Imports of Fastening Tools in 2022

General Quantity

%

General Total Value CIF (USD)

01/01/2022 - 02/28/2022 %

General Quantity

%

General Total Value CIF (USD)

Volume Change %

General Quantity

%

General Total Value CIF (USD)

%

China

217,668,894.00

56.77 306,998,430.00 35.50 279,476,786.00 53.37

376,276,714.00 35.72

61,807,892.00 28.40

69,278,284.00 22.57

Taiwan

83,857,872.00

21.87 131,728,813.00 15.23 153,904,538.00 29.39

184,834,094.00 17.55

70,046,666.00 83.54

53,105,281.00 40.32

Japan

3,902,864.00

1.02 107,864,562.00 12.48

Germany

9,512,613.00

2.49

70,385,148.00

Canada

7,236,802.00

1.89

S. Korea

2,099,266.00

Mexico

2,639,329.00

0.51

78,702,505.00

7.47

8.14

11,704,528.00

2.24

84,791,253.00

8.05

2,191,915.00 23.05

14,406,105.00 20.47

41,310,787.00

4.78

5,754,062.00

1.10

53,297,713.00

5.06

-1,482,740.00 -20.49

11,986,926.00 29.02

0.55

38,684,392.00

4.48

3,868,360.00

0.74

35,722,331.00

3.40

1,769,094.00 84.28

9,646,068.00

2.52

24,010,046.00

2.78

6,831,530.00

1.31

31,231,398.00

2.97

-2,814,538.00 -29.18

India

15,664,703.00

4.09

23,821,625.00

2.76

14,979,948.00

2.87

33,652,503.00

3.20

Italy

2,990,978.00

0.78

17,008,230.00

1.97

5,874,137.00

1.13

21,841,683.00

Vietnam

17,357,930.00

4.53

15,861,928.00

1.84

21,285,298.00

4.07

27,909,868.00

Total

-1,263,535.00 -32.38 -29,162,057.00 -27.04

-684,755.00

-2,962,061.00

-7.66

7,221,352.00 30.08

-4.38

9,830,878.00 41.27

2.08

2,883,159.00 96.40

4,833,453.00 28.42

2.65

3,927,368.00 22.63

12,047,940.00 75.96

Hardware & Fastener Components - no.54/2022

01/01/2021 - 02/28/2021 Country of Origin

383,473,853.00 100.00 864,935,476.00 100.00 523,715,275.00 100.00 1,053,598,544.00 100.00 140,241,422.00 36.58 188,663,068.00 21.82

103

Industry Focus >>

Taiwan Automotive Component Industry’s Transformation and Reaction in Joining CPTPP

Part 2 臺灣加入CPTPP汽車零組件 產業的轉型與因應(下)

by James Hsiao

The Analysis of Taiwan’s Automotive Components Import from/ Export to CPTPP Countries (a) Taiwan’s Automotive Components Import from/Export to Mexico In 2020 Taiwan imported 1.17 bn NTD worth of automotive components from Mexico and major items (ranked by import value) were motor vehicle components, engines & components, motor vehicle bodies & components. In 2020 Taiwan exported 3.57 bn NTD worth of automotive components to Mexico and major items (ranked by export value) were other automotive components, engine components, gears & transmission mechanisms, rims & components, car lamps (front/rear) & components, etc. Graph 1 shows Taiwan’s automotive components import from / export to Mexico.

Graph 1. Taiwan’s Automotive Components Import from / Export to Mexico

2016

2017

2018

2019

2020

Import Value

266

276

286

1,008

1,173

Export Value

4,724

4,681

4,807

4,506

3,571

Growth of Import Value

4.5%

3.8%

3.6%

252.4%

16.4%

Growth of Export Value

1.3%

-1.0%

2.7%

-6.3%

-20.8%

300.0% 200.0% 100.0% 0.0% -100.0%

Source: Customs Administration, Ministry of Finance (Taiwan) and ITRI (2021/12)

Graph 2. Taiwan’s Automotive Components Import from / Export to Australia Unit: million NTD

Hardware & Fastener Components - no.54/2022

Unit: million NTD

104

6,000 4,000 2,000 0

5,000 4,000 3,000 2,000 1,000 0

2016

2017

2018

2019

2020

Import Value

9

12

16

12

17

Export Value

4,635

3,817

3,293

2,827

2,995

Growth of Import Value Growth of Export Value

1.3%

-17.6%

-13.7%

-14.2%

6.0%

4.5%

33.3%

33.3%

-25.0%

41.6%

Source: Customs Administration, Ministry of Finance (Taiwan) and ITRI (2021/12)

60.0% 40.0% 20.0% 0.0% -20.0% -40.0% -60.0%

(b) Taiwan’s Automotive Components Import from /Export to Australia I n 2 0 2 0 Ta iwa n i mpor t ed 2 0 m i l l ion NTD worth of automotive components from Australia and major items (ranked by import value) were motor vehicle components, engine and components, motor vehicle bodies & components, etc. In 2020 Taiwan exported 3 bn NTD worth of automotive components to Australia and major items (ranked by export value) were other automotive components, car sheet metal, automotive electrical components, car lamps (front/rear) & components, etc.

Graph 2 shows Taiwan’s automotive components import from /export to Australia.

(c) Taiwan’s Automotive Components Import from / Export to Canada I n 2 0 2 0 Ta iwa n i mpor t ed 4 0 m i l l ion NTD worth of automotive components from Canada and major items (ranked by import value) were motor vehicle components, engine and components, motor vehicle bodies & components, etc. In 2020 Taiwan exported 2.85 bn NTD worth of automotive components to

Industry Focus >> Graph 3. Taiwan’s Automotive Components Import from / Export to Canada Unit: million NTD

(d) Taiwan’s Automotive Components Import from/ Export to Malaysia

(e) Taiwan’s Automotive Components Import from/ Export to Vietnam

Possible Impact on Taiwanese Automotive Components Industry and Suggestions on Government Policies After Joining CPTPP

2017

2018

2019

2020

Import Value

39

19

31

38

40

Export Value

3,377

3,353

3,578

3,453

2,849

Growth of Import Value Growth of Export Value

3.9%

0.7%

6.7%

-3.5%

-17.5%

23.6%

-51.3%

63.2%

22.6%

5.3%

Graph 4. Taiwan’s Automotive Components Import from / Export to Malaysia 2,500 2,000 1,500 1,000 500 0

2016

2017

2018

2019

2020

Import Value

369

383

309

185

177

Export Value

1,942

1,740

1,704

1,647

1,343

Growth of Import Value Growth of Export Value

7.5%

-10.4%

-2.1%

-3.3%

-18.5%

12.6%

3.8%

-19.3%

-40.1%

-4.3%

40.0% 20.0% 0.0% -20.0% -40.0% -60.0%

Source: Customs Administration, Ministry of Finance (Taiwan) and ITRI (2021/12)

Graph 5. Taiwan’s Automotive Components Import from / Export to Vietnam Unit: million NTD

In 2020 Taiwan imported 0.16 bn NTD worth of automotive components from Vietnam and major items (ranked by import value) were other automotive components, motor vehicle bodies & components, etc. In 2020 Taiwan exported 0 .7 8 b n N T D wo r t h o f a u t o m o t ive c omp onent s t o Viet na m a nd major items (ranked by export value) were other automotive components, gears & transmission mechanisms, transmission components, car lamps (from/rear) & components, etc. Graph 5 shows Taiwan’s automotive components import from/export to Vietnam.

2016

100.0% 50.0% 0.0% -50.0% -100.0%

Source: Customs Administration, Ministry of Finance (Taiwan) and ITRI (2021/12)

Unit: Million NTD

In 2020 Taiwan imported 0.18 bn NTD worth of automotive components from Malaysia and major items (ranked by import value) were other automotive components, motor vehicle bodies & components, etc. In 2020 Taiwan exported 1. 3 4 bn N T D wo r t h o f a ut o mo t ive component s to Ma laysia a nd major items (ranked by export value) were other automotive components, gears & transmission mechanisms, transmission components, car lamps (front/rear) & components, etc. Graph 4 shows Taiwan’s automotive components import from/export to Malaysia.

4,000 3,000 2,000 1,000 0

1,000 800 600 400 200 0

2016

2017

2018

2019

2020

Import Value

90

97

106

109

161

Export Value

765

705

762

569

782

7.8%

-7.8%

8.1%

-25.3%

37.4%

-18.5%

7.8%

9.3%

2.8%

47.7%

Growth of Import Value Growth of Export Value

100.0% 50.0% 0.0% -50.0%

Source: Customs Administration, Ministry of Finance (Taiwan) and ITRI (2021/12)

(a) Possible Impact on Taiwanese Automotive Components Industry and Companies’ Reaction Demographic Dividend That is Beneficial to Companies’ Business Expansion to ASEAN and Potential Countries/Markets Major ASEAN members have had a wealth of experience in automotive components manufacturing and the capacity for car production and assembly.

Many global leading car manufacturers have also set up their assembly plants

Hardware & Fastener Components - no.54/2022

Canada and major items (ranked by export value) were other automotive components, bumpers, rims & components, car lamps (front/rear) & components, etc. Graph 3 shows Taiwan’s automotive components import from / export to Canada.

105

Industry Focus >>

Hardware & Fastener Components - no.54/2022

in ASEAN countries due to sufficient labor force, low wages, inexpensive land acquisition cost, and promising automotive industries a nd ma rket development potential. Automotive industries of ASEAN are mainly in Malaysia, Indonesia, Philippi nes, and Thailand. Indonesia, Thailand, Malaysia, Philippines, Singapore, and Vietnam have cancelled their import ta rif fs on ca rs a mong each ot her and automotive components are also exempted from luxury tax. Different from the continuous car sales decline in advanced countries, ASEAN, on the contrary, is expected to see growth year af ter year in the demand for automotive components due to the demographic dividend and the huge potential for motorcyclists to buy cars.

The supply chain of the EV industry is different from that of fuel vehicles, and Taiwanese companies have made many achievements in the EV industry over the past few years.

106

In terms of the tax on Taiwanese automotive components exported to CPTPP countries, Taiwan faces the highest taxes in Malaysia (0-30%) and Vietnam (0-45%). If Taiwan can join CPTPP, the taxes for related products will be gradually reduced or exempted.

After then, Taiwanese companies can perhaps position Malaysia or Vietnam as their investment or sales operations to expand the ca r and automotive components market in ASEAN. The automotive component industry of Taiwa n is h igh ly complement a r y to those of Malaysia, Canada, and Vietnam, which is favorable to facilitate t h e g r ow t h m a r g i n of Ta iwa n’s economy and deepen the collaboration wit h t he supply chains of CP TPP members. In addition, the percentage of Taiwanese automotive components exported to CPTPP countries is still low in Taiwan’s total automotive component export. However, Mexico, Canada, and Australia with more production and domestic demand are potential markets for Taiwan’s automotive components export.

Taiwan’s Higher Import Taxes May Make It Hard to Compete with CPTPP Members Taiwan still imposes the tax of 0 -17.5% on i mpor t e d automotive components. If Taiwan is allowed to join CPTPP, which forces members

to gradually reduce or cancel taxes, it may not cause any immediate impact on Taiwanese automotive components industry. However, after CPTPP comes into force, Taiwan’s automotive components industry will bear the brunt of direct and huge competition from major car and component manufacturing countries such as Mexico, Canada, and Malaysia. In addition to the int’l import and export markets, Taiwan will face much pressure in the competition with ASEAN countries.

In particular, Taiwan still imposes the import tax of 15-25% on components for domestic demand (Note: In 2020 Taiwan produced 22.53 bn NTD worth of components for domestic demand, which can be divided into bus bodies (1.45 bn NTD), truck bodies (3.93 bn NTD), and chassis & suspension components (17.15 bn NTD). Although Taiwan once reduced the taxes for certain imported car bodies and suspension components, it may still face the competition from CPTPP members (e.g., Japan, Mexico, Canada, etc.) if it joins CPTPP. The Cost of Purchasing Automotive Components May Drop, Optimizing Industrial Transformation In 2020 Taiwan exported automotive components to CPTPP countries and its major export CPTPP destinations (ranked by export value) were Japan, Mexico, Australia, Canada, Malaysia, and Vietnam, which altogether only represented 13.8% of Taiwan’s total automotive component export to the world, showing the potential to increase export to these countries. With relevant countries adopting step-by-step tax reduction or exemption measures, Taiwan’s automotive components export may be benefited. The prices of automotive components imported from CPTPP countries to Taiwan will become lower due to tax reduction or exemption, which will also reduce the cost of car assembly and the price differences between imported cars and domestic manufactured cars. The prices of imported cars may be reduced, but this will also generate certain influences on domestic manufactured cars to some extent.

Taiwan’s automotive components industry oftentimes faces higher taxes in export, making it a bit difficult to expand overseas markets. As a result, most Taiwanese companies adopt overseas production to circumvent high taxes and maintain the competitive edge. If Taiwan can join CPTPP, it will help the automotive component industry remove the high tax barrier and strive for a fair competition on the market, which is also favorable for manufacturers to invest in more production in Taiwan and dedicate to the R&D of high value-added products.

In the grace period, related companies can also make the most of governmental policies to transform to the R&D of critical components, seek tax reduction, head toward the development of emerging industries like EV or self-drive vehicles, and look for collaboration with countries having close ties with Taiwan, such as Japan.

The Pandemic Triggered Supply Chain Restructuring and Increased Taiwan’s Global Awareness U.S.-China Trade War and Covid-19 have accelerated restructuring of the global supply chain. The export of Taiwan’s automotive components industry to Vietnam, Malaysia, and Mexico is also increasing year after year, attracting the investment of more Taiwanese investors. If Taiwan is allowed to join CPTPP, it can make the most of domestic resources and overseas market demand to restructure the supply chain in Taiwan, which is also beneficial to the restructuring of CPTPP supply chain. In the future, when more new members join CPTPP, the influence of CPTPP will become bigger. The joining of Taiwan in CPTPP will not only enable Taiwan to participate in discussions as an official member to keep updated with market trends, but also offer it more opportunities to launch trade negotiations with more countries, which is the best chance for Taiwan to enhance its global awareness and strive for more opportunities in int’l trade.

(b) Suggestions for Government Policies Commodity Tax Reduction for Vehicles For Taiwanese automotive components industry, it may face the direct impact from tax reduction or exemption if Taiwan joins CPTPP. As a result, how to

Industry Focus >>

Gradual Reduction of Import Taxes for Automotive Components The tax for different types of Taiwanese components varies from 5% to 17.5%. If the import tax for all critical components can be removed at once, it will help lower the costs for domestic car manufacturers to acquire critical components from their parent companies, thus making domestic manufactured vehicle to

be more competitive in terms of price. In the int’l market, domestic manufactured vehicles, compared to other imported vehicles, will also enjoy the advantage of lower cost, thus increasing the possibility of exporting domestic manufactured vehicles abroad. On the other hand, Taiwan can also learn from Vietnam’s experience to gradually reduce its vehicle tax to zero within 12 years, which will give domestic car manufacturers more time to make adjustments and get used to the possible impact on the car manufacturing and automotive components industries from tax reduction or exemption due to joining CPTPP.

Conclusions & Suggestions If Taiwan can join CPTPP, it will help the automotive component industry remove the high tax barrier and strive for a fair competition on the market, which is also favorable for manufacturers to invest in more production in Taiwan and dedicate to the R&D of high value-added products. In the grace period, related companies can also make the most of governmental policies to transform to the R&D of critical components, seek tax reduction, head toward the development of emerging industries like EV or self-drive vehicles, and look for collaboration with countries having close ties with Taiwan, such as Japan.

In terms of the tax for Taiwanese automotive components exported to CPTPP countries, Taiwan faces the highest taxes in Malaysia (0-30%) and Vietnam (0-45%).

If Taiwan can join CPTPP, the taxes for related products will be gradually reduced or exempted. After then, Taiwanese companies can perhaps position Malaysia or Vietnam as their investment or sales operations to expand the car and automotive components market in ASEAN. The automotive component industry of Taiwan is highly complementary to those of Malaysia, Canada, and Vietnam, which is favorable to facilitate the growth margin of Taiwan’s economy and deepens the collaboration with the supply chains of CPTPP members.

Hardware & Fastener Components - no.54/2022

increase its competitive edge will become a major concern and the possibility of commodity t a x reduction should be also t a ken i nto consideration. The commodity tax for different types of vehicles in Taiwan varies from 15% 30%. Before the end of 2021, new EV buyers could be exempted from the commodity tax after registration. After the commodity tax is reduced and if car manufacturers can reflect such reduction, it’ll make it easier for consumers to buy cars and reduce the price differences between domestic manufactured vehicles and imported vehicles, thus increasing the entire automotive market in Taiwan. In addition, extension of the commodity tax free period for EV will also encourage and help Taiwanese companies develop energy-saving vehicles, which has been a global trend.

107

Technology >>

From Easy Fastening to

Polyfunctionality

What is Polyfunctionality?

What “fastening” means is clear to everyone, but polyfunctionality in mechanical fasteners technology is less so. Nevertheless, this term is encountered almost daily. So, what exactly is it?

Polyfunctionality is in fact the ability of a structural element to perform other functions in addition to the basic function. This can be understood from Fig. 1 and 2.

從簡易鎖固到多功能扣件

by Jozef Dominik

Experienced readers have certainly recognized the difference between level 1 and 3 for example. In the first case, it is a primitive screw which, in addition to connecting, does not have any additional capabilities. However, level 3 already has the ability to drill a hole, cut a counter thread and replace the washer. This washer can even be rubberized, so it also serves as a seal (Level 4).

Fig. 1

It can be said that polyfunctional is no longer just a classic joining element, but as a tool-created screw (TCS), which has brought unprecedented economic benefits in the montage technology (Fig. 2) and in logistic.

And, we find several such cases in the current assortment of threaded fasteners. Recently, the attention of designers has focused on the development of so-called locking nuts. Fig. 3 shows details of two locking nuts operating on different principles (I. and II). It is a response to the frequent cases of spontaneous disintegration, often with fatal consequences, of screw joints due to vibration and variable mechanical stress of a given structural unit.

Fig. 2

And, the development continued in the field of materials and their heat- and surface-treatment. The current peak can be considered a level 3 screw, made from special stainless steel of the martensitic type, which has anti-corrosion protection at the level of classical austenitic steels A2 (Cr, Ni) and mechanical properties comparable to hardened steels. The combination of the ability to drill and cut a thread with high corrosion resistance ranks these TCS screws among a highly sophisticated construction element. And maybe we'll see in the future more similar pleasant surprises. However, one thing is certain - the screw as such, despite its efforts, has not yet been fully replaced.

Hardware & Fastener Components - no.54/2022

Metamorphoses of Screws

108

Fig. 3

Paradoxically, while the oldest thread history is relatively well known and documented, the transformations of screw joints in the post-technical revolution period are not systematically addressed. In some of our previous works, we have proved that the characteristic element of the screw - thread (spiral) is an autochthonous geometric element; that is, it wasn’t invented, it means, it is not a product of the human brain but like a circle. For example, it has existed since time immemorial, it has been observed by nature. One had plenty of opportunities to do so. Just keep one's eyes open and look. Such spirals are known, from human DNA to various galaxies, from simple to complex substances. It is not surprising, therefore, that people noticed them and began to use them to their advantage. C.O. Bauer, the author of “Handbuch der Vebindungstechnik” (Handbook of Connection Technology) considers screws to be the most widely used method of joining in the mechanical engineering and automotive industry.

How did It All Go (Table 1)?

Table 1 Archetypal geometric paradigm (ab origine)

Creation of brain (intelligence) Transport helix (Archimedes, born BC 287)

Fastening screws, da Vinci and end of 17th century

Technology >> Archimedes (287 BC–212 BC) who developed the screw principle and used it to construct devices to raise water, Leonardo da Vinci (1452 – 1519, Italy), later Joseph Whitworth (1803 -1887, UK), William Sellers (1827 – 1905, USA) and many unnamed pioneers have contributed to the fact that screw, based on the spiral, is currently one of the most common elements used in construction and machine design. Without them and without the friction, all machines and structures would fall into pieces.

Fig. 4

Of course, they have made tremendous progress over the years. This applies not only to their construction, but also to their materials and surface treatment. The first screws were made of wood (Fig. 4). They were mainly used for the pressing of olive oil or grape wine.

The development of high strength steels (800 - 1400N/mm 2), various heat treatment technology such as case-hardening in sophisticated case-hardening furnaces added to the screw the hardness and toughness necessary to screw or drill into various materials.

Especially stainless steels brought a literally revolutionary change. Stainless steels deserve special attention in connection with the corrosion of screw joints (Table 2).

What to Say in Conclusion?

As shown, the screw is a fascinating structural element. A typical symbol - the thread/ spiral has been known since time immemorial. One only observed him and used his own intelligence capacity to his advantage. Screws during the technical revolution (Guttenbeg, Wat, Ford, etc.) experienced the greatest expansion. In fact, without them, it would not even be possible. No wonder the author, together with his collaborators practically from all over the world, is trying to include screw connections on the UNESCO list. They certainly deserve it.

Fig. 5 Table 2 Symbol

Signification

F1, F2, F3

Ferritic

C1, C3, C4

Martensitic

A1

Austenitic with the addition of sulfur

A2

Austenitic Cr - Ni

A4

Austenitic Cr – Ni - Mo

A5

Austenitic Cr – Ni – Mo, stabilized Ti, Nb or Ta

Hardware & Fastener Components - no.54/2022

The basic alloying element of stainless steels is Cr (ca 18%), which has a high affinity for oxygen, so it very quickly forms a thin protective passivation layer on the steel surface.

However, the condition is the presence of O2 in the surrounding atmosphere. Failure to comply with this condition can have fatal consequences (Fig. 5).

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Company Focus >>

展通精密 凸輪/CNC自動車床 少見的銅胚到成品一條龍製程

Cam/CNC Lathed Components by

Zhan Tong Precision The Rarely Seen Vertically Integrated Manufacturing from Copper Billets to Finished Products

Hardware & Fastener Components - no.54/2022

by Gang Hao Chang, Vice Editor-in-Chief of Fastener World

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Zhan Tong Precision Co., Ltd. is specialized in production of environmentally-friendly quick cutting cam /CNC lathed components made of brass, which are mainly applied to the assembly of communication products. Among these products, cable connectors represent the largest share. In N. America, which is its main focused market, the company once achieved the annual sales record of NT$ 0.3-0.4 bn. Within just a decade after the inception of its Taiwan HQ, Zhan Tong has not only received the recognition of one of the best leading companies in the world, but also demonstrated continuous sales growth year after year that forces it to accelerate its investment plans. The plan of electroplating plant, which is about to give its ground-braking ceremony, is the very next step of Zhan Tong to offer customers more complete service.

Company Focus >> One-stop Service from Brass Billets Through Electroplating and Assembly for Cost Reduction Zhan Tong offers services from brass billets processing to the final electroplating and assembly. In the past customers could only purchase brass rods with limited specifications from other supply sources, so compositions of raw materials might not be fully compliant with actual customers’ application requirements. However, what makes Zhan Tong special is that it purchases bronze and zinc from master distributors in Taiwan, smelt them and draw them into brass rods, and then make adjustments according to customers’ different demands for tenacity or lathing difficulties, showing its high flexibility in adjusting ingredients of brass rods. Plus, the default monthly capacity of up to 1,000 tons can ensure stable material supply, while the stable control over fluctuating brass rod prices can help customers save their purchasing costs.

“Many counterparts of our industry dedicated themselves only to the trade, R&D, or processing of precision components, and only a few of them would expand their service further to the fields of raw materials and electroplating. Our one-stop service from material processing to the final finished products (incl. sorting and customized assembly) allows us to achieve better and more flexible control over costs, quality, and efficiency. Our professional R&D team can also assist customers in doing reverse engineering and this is our strength,“ said Zhang Tong General Manager Sam Liu.

The Monthly Capacity of 40-50 Million Pcs The Construction of a New Electroplating Plant is About to Begin Zhan Tong has more than 170 sets of auto lathes to quickly meet customers’ high volume demands and provides full customization as per customer’s drawing or sample. Currently it can offer products with the O.D. from 2mm (min.) to 42mm (max.) and the tolerance within ±0.01mm. Traditional lathes would need a lot of people to operate, however, Zhan Tong’s fully automated machines could run for 24 hours, effectively saving at least 70% of labor force and management costs.

Each product of the ISO 9001:2015 certified Zhan Tong is given a In terms of surface treatments of semi-finished products, traceable ID. Through the complete reverse tracing system, customers can Zhan Tong has planned to set up a electroplating plant at use every product code to trace every detail in manufacturing and ensure Yongkang Technology Park at the investment cost of NT$ 0.3 every step is compliant with relevant regulations and quality requirements. bn. It expects to set up 10 automated copper/tin/nickel/gold/ In the near future, it’ll also introduce MES to collect manufacturing tin+nickel electroplating lines in the primary stage. General data to ensure more accurate quality control in manufacturing, which is Manager Liu points out, “The current trend in manufacturing scheduled to be ready before the end of this year. Despite complicated is the big ones are always big. Although doing so would procedures and costs, it will make customers’ management on quality require the continuous investment, we are still very willing to much easier. do it. With our capacity, quality, and service to satisfy various Liu added, “Being optimistic to the development potential of EV customers’ demands, we can stand out in the competition.” components, we’re also planning to introduce IATF 16949 in order to develop more customers and orders. With multiple intelligent management systems in place, we hope to offer customers the most complete quality guarantee.”

ERP x MES x Product Tracing Systems

Email: sam@zhantong.biz Hardware & Fastener Components - no.54/2022

Zhan Tong contact: General Manager Sam Liu

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