We have more than 30 years of experience in parts manufacturing, conforming to ISO 9001-2015 international quality certification in 2017, and specializing in OEM/ODM services to produce precision metal parts and various hardware parts using CNC sliding head and fixed head automatic lathes.
We adopt Japan STAR and CITIZEN sliding head and fixed head automatic lathes and CAM style lathing. Our OEM services mainly include producing scooter and bicycle parts / automotive parts / building hardware / air tools / bathware parts / active components / spare parts / communication parts / accessories / flush head self-clinching studs / wheel nuts.
by Ja me s Hsiao
The Impacts of COVID on Taiwan Auto Parts Industry and Its Strategies
How did the COVID Impact the Global Automotive Industry?
While the whole world is concerning about how severely the Covid will impact the world economy, most economists around the world agree that the impacts on the global economy by the COVID are wider and deeper than they originally expected, as every economy in the world has suffered unprecedented impacts and the automotive component industry has been greatly impacted as well.
Under the influence of the COVID, the global automotive industry faced exceptional crises in their production and the consumption market, including temporary shutdown of car factories, industrial supply chain disruption, new vehicle sales plunge, aftersales market freeze, unemployment & gloomy economic outlook, all of which significantly cut down on customers’ trust. After all these changes, will the gradually recovering global auto parts industry also bring Taiwanese auto parts industry to life? Where can the automotive industry survive? Will it lead to a transformation in the auto parts industry?
Development Overview of Taiwan Auto Parts Industry
(a) Localized Marketing Through Chinese Operations
Leading Taiwanese auto parts companies have not only tapped into the supply chains of local Chinese car manufacturers, but also have entered the Chinese automotive aftermarket through joint ventures with Chinese companies or establishing subsidiaries directly. With localized production and sales supported by domestically supplied raw materials and human resources, Taiwanese investors in China have formed several industry clusters alongside the coastal areas in Kunshan, Shanghai, Zhejiang, Guangzhou, and Xiamen. In 2020, the total revenue of these Taiwanese investors in China represented roughly less than 8.9% of the total production value of Taiwanese auto parts industry.
肺炎疫情對台灣汽車零組件產業 的影響與因應策略
(b) Made in Taiwan and Sales Around the World
Taiwanese auto parts industry has been supplying products to car manufacturing plants invested by Japanese for long, so manufacturing equipment they use and the way they run their business are basically deeply influenced by Japan. Some leading car manufacturers even had the experience in OEM car production and selling products to the Middle East countries. Taiwanese auto parts manufacturers usually set up their R&D centers in Taiwan, due to the competitive edge of lead time, quality, and cost. For example, their rubber/plastic anti-collision components have been certified and tested; market shares of their bumpers, rear-view mirrors, and lamps are high in N. America and Europe; their motor and transmission components have entered the supply chains of well-known EV brands. Orders for high value-added products are processed in Taiwan and exported to the world.
The production value of Taiwanese auto parts industry in 2020 was around 7.39 billion USD (90% generated from Taiwan, 8.9% from China, and 1.1% from ASEAN & other countries). Graph 1 shows the capacity deployment of Taiwanese auto parts manufacturers.
Graph 1.
Source: IEK (2021/06)
Taiwanese Auto Parts are Mainly Sold to U.S. Aftermarket
Under the influence of the COVID in 2020, the value of the global auto parts market reached 1,446 bn USD, down 6.8% from 2019. China represented 380.3 bn USD (26.3%), Europe 367.3 bn USD (25.4%), the U.S. 347 bn USD (24.0%). All these three major markets represented 75.7% in total. China and Europe altogether represented 51.7%. Graph 2 shows the percentages of various auto parts markets in the world.
The Position of Taiwanese Auto Parts Industry in 3 Major Regional Markets
Main export destinations of Taiwanese auto parts in 2020 in sequence were USA (52.2%), Europe (23.7%), Japan (5.3%), China (3.9%), etc. About 8.9% of the total production value of Taiwanese auto parts in 2020 was generated by leading Taiwanese investors in China, who mainly supply the auto parts market and aftermarket for Chinese car brands and int’l car brands (e.g., VW, GM, etc.). Due to the influence of COVID, the export value of Taiwanese auto parts in 2020 was 5.31 bn USD, down 10.8% from 2019. Taiwanese auto parts manufacturers are dedicated to improving their production equipment and investing in smart manufacturing systems. Through positioning Taiwan as the R&D and production HQ as well as manufacturing various low-volume & high value-added parts in a more flexible way, Taiwanese companies can accept orders, manufacture, and sell products to the whole world.
(a) U.S. Market
Source: IEK (2021/06)
The production value of Taiwanese auto parts industry in 2020 was 7.39 bn USD. In addition to 0.79 bn USD worth of production supplied to the domestic Taiwanese market, the industry also had 89.3% of its total production (6.6 bn USD) exported to the world. The largest export destination for Taiwan was USA representing 3.86 bn USD (52.2%), followed by Europe representing 1.75 bn USD (23.7%) and China representing 0.29 bn USD (3.9%). Taiwan exports a diverse range of auto parts, most of which are plastic parts (incl. lamps, bumpers, rear-view mirrors, etc.), electric parts, braking systems, precision machined components such as wheels, gears, hubs, etc.). Graph 3 shows percentages of Taiwanese auto parts in worldwide markets.
Graph 3.
Source: IEK (2021/06)
Considering the vast territory and high wage level of the U.S., Taiwanese companies usually prefer setting up local warehouses to setting up factories directly. U.S. aftermarket is related to car ownership and accident rates. The more car ownership, the higher accident rate and higher demand for aftermarket service. Current U.S. car ownership reached 0.28 billion vehicles, which are the main market for aftermarket service. However, the market for aftermarket service can be also divided into the high (winter) and low (summer) seasons.
(b) Chinese Markets
Auto parts factories of Taiwanese investors in China are basically for production of engineered machining (e.g., gears and shafts), heat treatment, auto interiors/exteriors surface finishes (such as electroplating), plastic forming dies, clamps/ tooling. Most of these factories are located in the auto parts industry clusters in Shanghai, Kunshan, Suzhou, Dongguan, and Ningbo. Those auto parts they produce are supplied directly to Chinese or int’l car brands for their car assembly and aftermarket service.
(c) European and Other Markets
There are lots of auto parts manufacturers in Europe and entering the market for outside competitors (including Taiwanese suppliers) is quite challenging. Taiwanese suppliers mainly export lamps, bumpers, body sheet metal, fenders, rear-view mirrors, etc. to European aftermarket. Taiwanese manufacturers mainly set up their warehouses in the Netherlands and Germany, while some others chose to collaborate with local partners to set up their JV factories. Taiwanese manufacturers are also reinforcing their footprints in the deployment of EV charging stations in Europe.
Impacts of COVID on the Auto Parts Industry and Ways to React to Them
(a) Upstream Supply End
<< Impacts >>
★ City lockdowns, people contracting the virus or sent to quarantine, disruption of logistics and auto parts supply.
Graph 2.
★ As auto parts are usually processed in multiple stages (e.g., machining->heat treatment->grinding), the pandemic led to the discontinuation of parts manufacturing procedures.
★ Auto parts are involved in an international supply system, so the pandemic resulted in production and sales disruption across provinces, prefectures, or countries.
<< Ways to React to Them >>
★ Introduction of Just-in-Time and AI production equipment, reducing the demand for labor force.
★ Increasing stocks or diversifying the inventory locations of critical parts featuring high risks or low substitution possibility (e.g., safety parts).
★ Enhancing or simplifying manufacturing procedures of parts to shorten the industrial value chain.
★ Cultivating more suppliers of parts substitutes to disperse the risk.
(b) Downstream Consumption End
<< Impacts >>
★ Cars cannot be shipped out of the factories and sold until they are fully assembled with necessary parts. The pandemic discontinued the supply chain and influenced car sales and maintenance & repair.
★ The supply of critical parts featuring high risks or low substitution possibility was impeded or disrupted due to the need of multiple processing steps and supply across provinces, prefectures, or countries. The risk of supply was heightened.
★ Car production requires the seamless collaboration amongst auto assembly, whole vehicle testing and verification, shipment/sales/aftermarket, but the pandemic influenced every segment.
<< Ways to React to Them >>
★ Cultivating the second upstream parts suppliers to avoid the risk in the supply system.
★ Establishing the idea of Just-in-Case and dispersing parts inventory or logistics ways (for example, Toyota utilizes logistics trucks as movable warehouses) to reduce inventory space and achieve JIT supply.
★ The auto parts industry can introduce Block Chain and Industrial Internet of Things (IIoT) to get connected to the supply chain of production, sales, aftermarket and recycling.
Global and Taiwanese Auto Parts Industrial Outlooks in 2021
(a) Global Auto Parts Industrial Outlook
Car ownerships in the U.S., Japan, and major European countries continue to rise, which can generate positive effects on the aftermarket. Emerging markets like China, India, Mexico, and ASEAN are also seeing a bigger aftermarket due to the growing post-COVID demand for auto parts. It is expected that in 2021 the economic growth rate of China will exceed 8%. While the governments are formulating policies to popularize the use of new-energy vehicles and establishing guidance to increase EV sales, the demand for critical EV parts will appear
a significant growth from 2020. With more vaccinations to help flatten the pandemic curve in 2021 and the implementation of economic stimulus plans in major countries, the value of global auto parts sales is expected to reach 1,533.6 bn USD, up 6.3% from 2020. Graph 4 shows the growth rate forecast of the global auto parts production value in 2021.
(b) Taiwanese Auto Parts Industrial Outlook
Reshoring of Taiwanese manufacturers and introduction of automated equipment and production are favorable to beefing up the cost competitiveness. It is expected that in 2021 Taiwanese auto parts industry will embrace an increase in their overseas sales due to the easing pandemic curve and their full-year production value will be 221.45 bn NTD, up 5.1% from 2020. The reason for such a production value increase can be attributed to the significant increase in auto parts exports to the U.S., Europe, ASEAN, Japan, and China. On the other hand, the percentage of EV parts will also appear growth. Graph 5 shows the growth rate forecast of Taiwanese auto parts production value in 2021.
Graph 4.
Source: IEK (2021/06)
Graph 5.
Source: IEK (2021/06)
Future Development Strategies of the Auto Parts Industry
(a) Upstream Supply End
• Utilizing digital tools and platforms to enhance the effectiveness of supply chain management.
• Using IIoT, Block Chain, Cloud Service and digital tools to reinforce transparency of supply chain operation and get a real-time understanding of changes in upstream/middle stream/downstream supply chain operation. Introducing JIT production and establishing AI production lines to reduce the demand for labor and improve production efficiency.
• Making the most of AI database to analyze and make decisions, achieving the AI-driven supply chain management.
• Conducting continuous analyses of market demand and raw material prices through the use of AI, Big Data, or other analyzing tools and cultivating the second upstream parts suppliers to reduce the uncertainty and risk of supply chain operation.
(b) Downstream Consumption End
• Utilizing digital tools and platforms to enhance service efficiency.
• Establishing the idea of Just-in-Case and dispersing parts inventory or logistics ways to reduce inventory space and achieve JIT supply.
• The auto parts industry should introduce Block Chain and IIoT to get connected to the supply chain of product planning, R&D, production, sales, aftermarket, and recycling.
• Making the most of AI database to analyze and make decisions, achieving the AI-driven supply chain management.
• Improving digital manufacturing to realize instant data collection and operation visualization of parts production lines; using AI to improve supply chain coordination, ensure auto parts quality, and increase capacity utilization.
(c) Government End
For Taiwanese manufacturers
• Adjusting untimely tariffs on auto parts (such as lower-end stamped sheet metal or rubber/plastic interiors and exteriors), to help manufacturers cut down on manufacturing costs, increase price competitiveness, and reduce too much reliance upon imports from Japan, China, etc. Helping manufacturers transform their business to avoid industrial competition and set foot on niche products, such as critical EV parts.
For int’l community
• Helping manufacturers apply for int’l certification (such as auto-pilot vehicles or Internet of Vehicles) to win over opportunities to collaborate with int’l car brands. Increasing manufacturers’ brand awareness in int’l community through helps of governmental institutions functioning abroad (such as attending trade or business matchmaking events) and expanding sales to emerging markets (e.g., ASEAN, Central/ E. Europe, the Middle East, Central/S. America). Signing investment & trade protection protocols to help companies accelerate their business deployment.
Recap
Due to the COVID pandemic, the global auto parts consumption market in 2020 reached 1,446 bn USD, down 6.8% from 2019. Main consumption markets included the U.S., China, Europe, Japan, etc. It is forecast that due to the flattened pandemic curve in major countries and economic stimulus plans of certain countries to boost consumption, the global auto parts market in 2021 will reach 1,536.6 bn USD, up 6.3% from 2020. In Taiwan, with the easing pandemic curve, recovering orders, and growing market demand, its auto parts production value is also forecast to reach 221.5 bn NTD, up 5.1% from 2020.
Over 90% capacity of Taiwanese auto parts industry is deployed in Taiwan and mainly for exports to the U.S., Europe, Japan, and China as well as the domestic market for car assembly and aftermarket. 8.9% of its capacity deployed in China is mainly for supplying Chinese brands and aftermarket. In 2020 the value of Taiwanese auto parts export reached 5.31 bn USD, down 10.8% from 2019. Main export destinations were the U.S. (52.2%), Japan (5.3%), China (3.9%), and Germany (3.0%).
The current position of Taiwanese auto parts in the global market can be attributed to their JIT supply, stable product quality, competitive costs, and the supply of superior quality and certified rubber/plastic parts and engineered machined parts to customers. The market share of Taiwanese auto parts is very high in the aftermarket of N. America, Europe, and Japan. Taiwanese auto parts manufacturers are also actively expanding their business to emerging countries like ASEAN, Mexico, and the Middle East countries.
The major COVID-related impacts on Taiwanese auto parts industry are the value reduction of its export to the U.S., Europe and Japan, caused by the pandemic, logistics disruption, container shortage, and dollar depreciation. The future development strategies of Taiwanese auto parts industry should be: Upstream suppliers improve their manufacturing procedures and extend their reach to EV auto parts. In the downstream consumption end, the supply chain risk management mechanism should be established and participation in the eco-system of the int’l supply chain is also important.
It is suggested that Taiwanese Government should reduce the tariffs on lower value-added auto parts (such as lower-end stamped sheet metal or rubber/plastic interiors and exteriors), encourage companies to introduce AI production equipment in order to reduce manufacturing costs and increase price competitiveness, guide companies to transform their business to avert industrial competition and extend their reach to niche products (e.g., critical EV auto parts, charging stations, etc.).
Magtech Magnetic Products Corp.
Cornerstone for Hardware & Hand Tool Industries
With 29 years of history, Magtech specializes in various permanent magnets, magnetic applied tools, magnetic holders, magnetic rollers, magnetic bars, magnetic plates, etc. In line with the New Southbound Strategy of Taiwan, Magtech has built the overseas bases in India (Mumbai and New Delhi), Indonesia (Jakarta), and Malaysia (Kuala Lumpur), where the company has local project managers who can provide the latest market intelligence and communicate with potential buyers in local languages to get closer to them. The contacting office in Japan has Japanese staff promoting all kinds of magnets and magnetic health care products and is successfully boosting sales.
Service Upgrade with Product Demo Room Launched in the Tamsui Plant
A dedicated demo room was arranged for clients to find the magnetic products that suit them the best. The room displays magnets, magnetic applied tools, and magnetic health care products. Any clients with or without a design concept or idea in mind can come to the room to know the various types of magnets. Samples are available for sales on the spot. The room utilizes both the functions of display and education.
Working in Tandem with Hardware & Hand Tool Industries
The company can provide standard and customized magnetic holders, screws, hooks, bars, plates, devices and magnetic separators. Furthermore, it collaborates with other industries and, as an example, has helped a client refine a stainless steel bearing component. Its staff dismantled the client’s sample, offered an improved design, and then assembled the magnet and outer casing into the final product, diving into every manufacturing process and providing complete technical support.
The Industry’s One and Only “Magnetism Shopping Mall Taiwan (MSMT)” Manifesting Online Retail of Magnetic Products
“Magnetism Shopping Mall Taiwan” was the first online retail site established early in November 2010 to offer clients the convenience of purchasing a small amount of magnetic products to test them. The MSMT contains a purchase interface and payment system which are on par with TV shopping channels. The products on display are complete in specification and type and are readily available even for singleitem purchase. Quite a few major clients start their purchase with the samples displayed in the MSMT and then place batch orders after a successful test. Now they are loyal and long-time clients. MSMT has gone a long way for Magtech’s sales. The MSMT is now open for Taiwanese customers including anyone in the hardware and hand tool industries as well as on health care products. They can also leave a message online to purchase products with sizes that are not listed. Overseas customers can place orders and purchase directly via the following website: www.magnetsretail.com.tw
A Critical Pillar Supporting Various Industries
The company has taken measures against COVID in the last two years. It communicates with clients and solves their problems via telecommunication apps and videoconferencing software to keep operating the business. Magnets will be indispensable for the future world going for less carbon and even going carbon-free. Electric vehicles and public transport are much related to the application of magnets. Magtech speeds up the progress of digitization and hopes to provide clients with faster and more convenient service.
Unique Know-how for High-hurdle Market
“India is known as the hardest place to promote overseas products, but now it is our primary market,” said the company. This is achieved through an integrated effort of our expertise, patience, sincerity and know-how rather than price advantage. “First, doing business begins with understanding the culture, so we are an active member of Taiwan India Business Association and attend its seminars and member meetings. Next, be patient and don’t give up easily. Someday you will reap what you have sown.”
by De an Tse ng, Fa ste ne r World
Jingle-Tech FastenersOne-stop
High-end Industrial and Construction Parts Manufacturing Service
by Gang Hao Chang, Vice Editor-in-Chief of Fastener World
With a consolidated presence for nearly 15 years in the international market, Jingle-Tech Fasteners Co., Ltd., well-known for its excellent product processing technology and well-experienced technicians, continues to supply screws, bolts, nuts, washers, anchors, and assorted parts for construction applications made of carbon steel, stainless steel, alloy steel, brass, and nylon to domestic and overseas clients from medium to high end industrial and construction markets. As its products feature stable & high quality and highly competitive price range, lead time, and customer service, Jingle-Tech has been trusted and recognized by clients in Europe and America. In 2020 it also reported an outstanding sales result of around US$ 10 million.
One-stop Service Creating Cost Advantages for Clients
In response to various clients’ demands for bulk orders or low-volume-and-diverse items, Jingle-Tech not only has its own factory, but also collaborates with several associate factories that can provide intime support to it. As a result, its professional sales and technical teams can help create the best balance point for clients at all times without sacrificing product and service quality. On the other hand, its clients can have their demands for diverse products fully satisfied by contacting only one supplier, which is quite efficient in all aspects and allows them to get more cost advantages in the face of external competition.
“Our collaboration with clients are based on the long-term and rock-solid trust between each other. Plus, as we are also a member of a domestic hardware association, we are able to get access to more complementary partners in the industry, enabling us to handle every client’s demand in the most appropriate way. It’s no problem to us to process tens of containers per month!”, said General Manager Candy Wang.
Dedicated to Medium to High End Markets Expansion and Transformation are Already Underway
Products of Jingle-Tech are of high quality and its manufacturing procedures are also compliant with IFI, DIN, BS, ISO, JIS, and AS standards, so Jingle-Tech can always maintain a quite high market share in European and American medium to high end markets. The European market particularly represents more than 60% of its total sales. Clients’ orders from other markets like USA, Mexico, Brazil, and countries in S. America are also received regularly. Talking of the benefits brought by market recovery this year, General Manager Wang said, “Our capacity has been fully booked through next year. Accordingly, I expect our 2021 full-year sales result to perform well and land on the mark of US$ 15 million.”
In addition to manufacturing industrial and construction parts, Jingle-Tech has been also dedicated to the expansion and transformation of its current product portfolio in recent years, and has extended its reach to CNC machined parts, welded parts, non-standard industrial parts, safety products, etc.
Wang added, “Our team excels at R&D very much! We can not only develop new products on our own, but also can provide clients’ drawings with the most professional suggestions and national inspection reports. We’ve been certified by ISO 9001 and CE and also considering applying for IATF 16949 and ETA in the future.”
Wang noted, “Going toward the development of more advanced parts is quite challenging, but is the best approach to demonstrating our team’s strength instead. I highly anticipate that Jingle-Tech will continue to strengthen its reach to the international market and promote the value of products and brands for more industrial clients.”
Contact: General Manager Candy Wang Email: sales@jinglecorp.com
Independent Die Development Capability YEN CHANG Shines Bright with CNC Machining Service
by Gang Hao Chang, Vice Editor-in-Chief of Fastener World
Yen Chang Hardware Hooks & Spring Factory is specialized in production of hardware and stamped parts made of stainless steel, aluminum, and copper…etc. In recent years it has extended its footprints to the field of CNC machined parts with higher precision. Being fully compliant with the requirements of ISO 9001:2015, products of Yen Chang have been successfully applied to automotive/motorbike components, precision fixture & tooling parts for hi-tech industries, metallic fixture accessories for solar panels, electronics parts, metallic parts for biotech industries, fastener hook components, camping hardware, fishing hardware, hardware for daily use, and many other customized products.
In order to satisfy customers’ demands for different volumes and adapt to the complexity of on-site machining, Yen Chang has sequentially introduced CNC spring former, multi-slide forming machine, servo press, C-frame crank press, servo bending machines, etc. For years, the high product quality, efficient CNC service, and professional team of Yen Chang have become a common view in its global
Contact: Kiwi Cheng, Sales & Purchasing Manager
customers’ minds and the best proof of its reckless efforts to help customers create their own brand value.
“Our facilities, including CNC or traditional milling machines, were mainly purchased from Japan. These facilities are of high precision, so errors can be avoided. Our professional technical team also has capabilities for independent die development and R&D in automated manufacturing procedures, which can greatly reduce the outsourced processing cost and enhance delivery efficiency. In addition, with 30-40 years of close ties with our associate factories, Yen Chang’s ultimate goal is to fulfil our social responsibility for establishing mutual growth with our factory partners and customers,” says Sales & Purchasing Manager Kiwi Cheng.
Speaking of the current situations of surging global market demand and insufficient material supply, Cheng added, “We’re always dedicated to playing a key role in reminding our customers of keeping their eyes on material price fluctuations and possible shipment delay, and offer them suitable inventory suggestions to avoid the risk of disrupted supply.”
“A good sword takes the blacksmith ten years to grind.” However, it took more than 30 years for Yen Chang to make its sword shine even brighter. Over the past 3 decades Yen Chang never stopped facility renovation and technique improvement. With the advent of more challenges, Yen Chang will not exclude any possibility of developing more products and set any limit on its service range, as it hopes to get away from the traditional framework and grow together with customers.
JIN SHIN CHYUAN INDUSTRY
The Irreplaceable Great Hand at CNC Machining
by Gang Hao Chang, Vice Editor-in-Chief of Fastener World
“The most difficult blueprint makes all turn away but Jin Shin Chyuan!” This is the first impression Jin Shin Chyuan Industry Co., Ltd. has made on many Taiwanese and overseas customers in the past 4 decades and is also the best description to portray the CNC machining technique and service of Jin Shin Chyuan that fully satisfy customers demands at all times.
Swiss-type CNC Auto Lathes - No Secondary Processing is Required
Jin Shin Chyuan adopts a lot of complex and reliable CNC lathes that can complete machining, milling, and boring without secondary processing (Po Ly Gim, for example). Such an advantage enables it to achieve higher part precision, more efficient processing, and quicker lead time than those of its industry peers still adopting outdated manufacturing procedures. Moreover, due to the fact that Swiss-type CNC auto lathes can complete forming through surface finishes and that all facilities are operated by professional technicians, Jin Shin Chyuan can continue to take on difficult challenges including processing products in special materials or of different angles. Its technique enables it to process various parts in 2.5-42mm diameters and a single workpiece of up to 180mm. Adhering to the principle of “making the quality right at the very start and meeting customers’ requests,” Jin Shin Chyuan has successfully extended its reach to Europe, USA, Australia, and many other developed markets and gained a consolidated presence. In addition to customers from the general metallic part industry, it has even become the designated supplier of many customers from the high-end automotive precision parts industry.
“The reason that we can be continuously trusted by global industrial customers should be attributed to the experience our team has accumulated for long and our patience and perseverance to overcome difficulties and challenges. We’ll spare no effort to satisfy customers’ demands for product quality and precision and maintain stable quality and competitive edge of our products,” said Jin Shin Chyaun.
Our 100% Yield is Different from Yours!
Besides leading processing technique, another reason that helped generate so much high customer loyalty to Jin Shin Chyuan should definitely be attributed to its attitude of seeking perfect quality and making no compromise. In order to satisfy a customer’s demand for quality, its founder, Mr. Huang, once had a single part machined for over 40 times, which later earned the appreciation of the customer saying “I’ve never seen a supplier, who’s working so hard!”
To other industry peers, “100%” may denote the yield rate of a factory. However, to Jin Shin Chyuan, it denotes the percentage of high-quality CNC parts dropping out of machines. Based on the principle of perfect quality control, Jin Shin Chyuan particularly values the purchase of superior quality materials, facility renovation, and personnel technical training. Its ever-improving strict manufacturing procedure has also earned itself the recognition of ISO 9001.
Others Can’t Do It, Jin Shin Chyuan Can.
To be good at manufacturing CNC machined products oftentimes requires several years of experience. Jin Shin Chyuan owns a diverse range of first-rate facilities, allowing it to process orders in bulk, and has 40+ years’ experience in CNC machining. As a result, it can always remain calm in the face of challenging demands for part machining to complete every customer’s task.
Jin Shin Chyuan said, “We’ve never set any limit on our capabilities and service range and are pleased to take on new challenges. Through our irreplaceable technique and experience, hopefully, we can help our customers create the best competing condition on the world stage.”
Contact: Jam Huang E-mail: jam@jinsc.com.tw
全球五金手工具大廠財報
Financial Reports of Hand Tool & Hardware Companies
U.S.A
Reddot & iF Design Award Winners for 2021
2021 Reddot設計獎與iF De s ign大獎得主
Arrowmax SES PRO Smart Mo
Control Electric Screwdriver
The Arrowmax SES PRO is an electric screwdriver with smart motion control. It is equipped with a powerful lithium-ion battery, a 32 bit microprocessor and a three-axis gyroscope. The unit is controlled via a single button and a seamlessly integrated OLED display, which can be used to preset the torsional force and speed in steps. Most 3D products, computers, four-axis unmanned machines, glasses, watches, toys, models, etc. can be installed and removed with the screwdriver.
The Arrowmax SES PRO successfully integrates an electric drive and a digital user interface for more efficient screwdriving.
Manufacturer:
Freemax Technology Co., Ltd., Hong Kong
SYSTEM 5000-3 CT Torque Wrench Series
The third generation of the HAZET torque wrench series comprises 10 wrenches with integrated reversible ratchets in sizes 6.3 mm (1/4”), 10 mm (3/8”), 12.5 mm (1/2”), and 20 mm (3/4”) for a measuring range from 1 to 800 Nm. This new series features a large torque range combined with high precision and practical advantages in a functional, user-oriented design – Made in Germany. The triangular shape of the blue rotary assembly prevents the wrenches from rolling away from the user. The new latching mechanism on the handle guarantees a secure setting, while the laser inscription on the scale ensures permanent readability of the torque values.
HAZET-Werk, Remscheid, Germany
Hikoki 12V Peak Series Lightweight Power Tool
The electric power tool industry’s focus on carpenters has resulted in many large, heavy, overpowered tools that are not ideal for electrical construction and facilities construction workers. Often working at jobsites with narrow spaces, these workers need power tools that are lightweight and easy to handle. The 12vPEAK battery positions the designer to offer lightweight downsized power tools capable of high performance. In short, this is a series of tools that are compact and deliver outstanding performance. These power tools allow workers to be even more efficient in delivering high-quality work.
Manufacturer: Koki Holdings Co., Ltd., Japan
SF 4-A22 / Cordless Drill Driver
SF 4-A22 is a cordless drill driver, built for professional craftspeople who take pride in achieving precise results. The same ergonomics-led design unites all levels of the SF tool family, with legible adjustments to express the different engineering within each power class. The tool has been designed to balance the power output required for high productivity with the ergonomics needed for exact, comfortable handling. A well-balanced, contoured body sits firmly in the hand. This improves handling precision, while a stepless trigger means power can be intuitively adjusted to prevent damage to the base material from excessive torque.
Manufacturer: Hilti Corporation
GARANT 65 5010 HCT Digital Wireless Torque Wrench
The new electronic GARANT HCT-wrench lets users control not only the force but also the angle of rotation when tightening a screw. The tool supports screw tightening with repeatable, precise movements and even relays visual, haptic, and acoustic feedback when the screw is secure. The wrenches can be programmed to accommodate various workflows and all recorded measurements can be filed digitally, even wirelessly with the HCT-app. The large, customizable display shows detailed real-time information about the screwing process.
Manufacturer: Hoffmann SE
Hardware World News
World Steel Association Predicts Global Steel Demand to Grow 5.8%
世界鋼鐵協會預測全球鋼材需求增加5.8%
Industry Development
Q4 Steel Prices in Taiwan May Climb Due to Insufficient and Tightened Steel Supply
鋼料供給續吃緊 台灣第4季鋼價有撐
After Taiwan’s China Steel Corp. (Taiwan CSC) adjusted the Q3 prices of its steel products up by 4.1% on average, many industry analysts forecast that its Q4 prices may continue to follow the growing trend in the international market.
Such a forecast is based on the reasons like: Russia announced a 3-month long and more than 15% provisional export taxes on metals including steel, aluminum, nickel, and copper; Chinese Government imposed certain measures to restrict exports of steel products; the reduction in steel manufacturing of Indian steel plants will continue through this September; many major steel plants in China, S. Korea, and Asia have announced plans for annual repairs or a temporary halt of production. All of these factors will surely lead to a more tightened steel supply in the global market already suffering insufficient steel supply.
Considering the continuously growing market demand and in order to reduce the possible impacts on the supply to downstream manufacturers, Taiwan CSC has announced to postpone its annual repairs schedule to April 2022 (though small-scale annual repairs will still be carried out). In addition, as the current steel prices by Taiwan CSC remain comparatively lower than the general int’l market prices, some market analysts forecast that the steel prices of Taiwan CSC are very likely to appear another wave of price increase in the upcoming August.
World Steel Association (WSA) predicts that the global steel demand will increase by 5.8% to 1.874 billion tons in 2021 and go up 2.7% to 1.924 billion tons in 2022.
Vaccinations in many countries worldwide have helped slow down the pandemic. Although some economic measures imposed by certain countries have taken effect, advanced countries are still expected to spend several years to recover to the pre-pandemic level.
On China alone, its local steel demand is expected to increase by 3% to 1.024 billion tons in 2021 and go up 1% to 1.035 billion tons in 2022. The effect of local market stimulus is waning, so the growth margin is on a downward trend. On the other hand, the steel demand in advanced countries is expected to increase by 8.2% to 371 million tons in 2021 and go up 4.2% to 386 million tons in 2022.
Certain Chinese Steel Fasteners Subject to Import Registration in the EU Since June 17
中國輸歐盟鋼鐵扣件06/17日起實施進口登記
The customs authorities of all EU member states are hereby directed, under Article 14(5) of Regulation (EU) 2016/1036, to take the appropriate steps to register imports of certain fasteners of iron or steel, other than of stainless steel, i.e. wood screws (excluding coach screws), self-tapping screws, other screws and bolts with heads (whether or not with their nuts or washers, but excluding screws and bolts for fixing railway track construction material), and washers, so that measures may be applied against those imports retroactively from the date of such registration, provided all conditions set out in the basic Regulation are met.
These products are currently falling under CN codes 7318 12 90, 7318 14 91, 7318 14 99, 7318 15 58, 7318 15 68, 7318 15 82, 7318 15 88, ex 7318 15 95 (TARIC codes 7318 15 95 19 and 7318 15 95 89), ex 7318 21 00 (TARIC codes 7318 21 00 31, 7318 21 00 39, 7318 21 00 95 and 7318 21 00 98) and ex 7318 22 00 (TARIC codes 7318 22 00 31, 7318 22 00 39, 7318 22 00 95 and 7318 22 00 98) and are originating in the People’s Republic of China.
Registration shall expire nine months following the date of entry into force of this Regulation. All interested parties are invited to make their views known in writing, to provide supporting evidence or to request to be heard within 21 days from the date of publication of this Regulation. This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.
Russia Imposes 15% Provisional Export Tariffs on Certain Metals
俄羅斯對金屬原料課徵15%臨時出口稅
The Government of Russian Federation has recently imposed the export tariffs of at least 15% each on steel, nickel, aluminum, and copper since Aug. 1st, 2021 and this measure will officially come into effect through the end of this year. According to the measure, copper is subject to a tariff rate of US$1,226 per ton; nickel is subject to a tariff rate of US$2,321 per ton; aluminum is subject to a tariff rate of US$254 per ton; however, rates for steel products differ from each other, and in the “hot rolled steel” category, it is at least US$115 per ton.
Vietnam’s Steel Export to EU up 5 Folds in First 5 Months of 2021
2021年前5月越南鋼鐵輸往歐盟成長5倍
According to the data of Vietnamese Customs, Vietnam’s steel export reached 980 thousand tons at an export value of USD 833 million this May, down 4% in volume and up 8.2% in value from this April. The total export volume reached 4.88 million tons in the first 5 months of 2021 at a total export value of USD 3.61 billion, up 61.6% in volume and up 117% in value from the same period last year. The EU, China, Cambodia, Malaysia and Mexico are the top 5 destinations for Vietnamese steel products. In the first 5 months of 2021, Vietnam grew 500% (at 713 thousand tons) in steel export to the EU, 200% to China (at 1.1 million tons), and 250% to Mexico (at 293 thousand tons).
The significant growth in Vietnam’s steel export to the EU could be attributed to the European Union-Vietnam Free Trade Agreement (EVFTA). This also means that Vietnamese companies have acquired standardized production lines and are capable of meeting the stringent requirements and demand by the countries they export to.
China Launches AD Sunset Review on EU and UK Iron and Steel Fasteners
中國對歐盟和英國碳鋼扣件啟動期 終反傾銷複審調查
On April 28, 2021, Ministry of Commerce of PR China received the application from the Fastener Subdivision of China General Machine Components Industry Association (CMCA) on behalf of Chinese iron and steel fastener industry for a 5-year sunset review on the antidumping measure against certain iron and steel fasteners originating in the EU and UK. CMCA alleged that if the antidumping measure is terminated, the dumping of certain iron and steel fasteners originating in the EU and UK may continue and may continuously lead to the material injury to local Chinese industries. As a result, CMCA made a request that Ministry of Commerce should launch a sunset review investigation and maintain the antidumping measure.
Ministry of Commerce has determined to launch the sunset review investigation against certain iron and steel fasteners originating in the EU and UK since June 29, 2021. During the investigation, the previously announced antidumping rates and products involved will remain effective (note: The current AD rates for certain iron and steel fasteners imported from the EU and UK are between 6.1 % and 26.0%. However, Koninklijke Nedschroef Holding B.V. and its affiliated companies are subject to a rate of 5.5%). The investigation period for antidumping is from 2020/01/01 through 2020/12/31, while the investigation period for material injury to the local industry is from 2016/01/01 through 2020/12/31.
Products involved in this investigation are: certain iron and steel fasteners, which include wood screws, self-tapping screws, screws and bolts (whether or not with their nuts or washers, but excluding screws and bolts with their shanks less than 6mm for fixing railway track), and washers. Products involved do not include nuts and other fasteners used for the maintenance and repair of commercial aircraft. The tariff codes of products involved are 73181200, 73181400, 73181590, 73181510, 73182100, and 73182200.
All interested parties are invited to register their participation in the sunset review through the Trade Remedy and Investigation Bureau of Ministry of Commerce of PR China within 20 days from the date of publication of this Notice. The investigation starts from June 29, 2021 and should come to an end before June 28, 2022.
USITC Makes Determinations in Five-Year (Sunset) Reviews Concerning Steel Nails from Korea, Malaysia, Oman, Taiwan, and Vietnam
美國國貿委員會裁定續課南韓、馬來西亞、阿曼、 台灣和越南鋼釘反傾銷稅5年
The U.S. International Trade Commission (USITC) determined that revoking the existing antidumping and countervailing duty orders on imports of steel nails from S. Korea, Malaysia, Oman, Taiwan, and Vietnam would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.
As a result of the Commission’s affirmative determinations, the existing orders on imports of this product from S. Korea, Malaysia, Oman, Taiwan, and Vietnam will remain in place. The action comes under the five-year (sunset) review process required by the Uruguay Round Agreements Act.
Indonesia Seeks Collaboration with Foreign Investors to Establish Its Own EV Supply Chain
Indonesia has been devoted to developing a complete EV supply chain these years. The country seeks to collaborate with American, Japanese, South Korean and Chinese investors and sets goals to make 20% of cars produced in Indonesia to be electric by 2025 and become a global EV and EV battery manufacturing hub. Indonesia Investment Coordinating Board announced LG Energy Solution will invest USD 9.8 billion to work with an EV battery group of 4 Indonesian companies (PLN, Pertamina, Aneka Tambang and MIND ID) to form a complete EV battery supply chain.
Battery production is the key to EV industrial development. Indonesia is rich in materials including cobalt, nickel, manganese and other rare metals that allow for establishing a price-competitive EV industry. Joko Widodo (President of Indonesia) has set goals for the nation to start producing EV in 2022, make the proportion of components used in any EV produced in Indonesia reach at least 35% by 2023, and make EV account for 20% of all Indonesian car production by 2025.
Companies Development
Aluminum Alloy Supplier Ting Sin’s Revenue Sets a Record High in June
The aluminum alloy wire rods manufactured by Ting Sin are the materials for EV and aerospace fasteners. The company reported its June revenue at NTD 280 million, up 121.84% from the same month last year and up 104.35% from May. The revenue for the first 6 months this year was NTD 959 million, up 36.55% from the same period last year. Ting Sin said that end users’ demand grew significantly as the COVID-stricken U.S. and Europe were opening up. The company now has a full orderbook for aluminum alloy products and is looking to mass-produce highvalue-add aluminum alloy wire rods in the second half of 2021.
Ta Chen’s 2021 Revenue Likely to Peak Amid U.S. Market Recovery
美市復甦 大成鋼2021年營收望攀峰
The USD 6 trillion budget proposed by U.S. President Biden is expected to drive the infrastructure demand in the U.S. Ta Chen International (TCI) has been the beneficiary of the revival in American industrial steel demand since the beginning of this year, while looking to continue raising its product prices. TCI’s revenue for Q2 2021 is expected to climb high again, and its full-year revenue stands a chance to reach a new high at NTD 85 billion with high profitability. TCI’s EPS for the whole year is expected to land at NTD 3 to NTD 4, which signifies an obvious recovery from the deficit last year and an EPS record that is only second to NTD 5.83 back in 2018.
Sheh Fung Screws Looks to Raise Prices Again Due to Heightened Material Prices
原物料漲不停 世豐螺絲醞釀第二波漲價
Sheh Fung said its primary clients’ need for inventory replenishment and order placement remains strong because of the vibrant demand from U.S. home improvement and construction markets. Although some order shipments were postponed due to the “jam-packed” situation in major U.S. ports, Sheh Fung was still able to optimize its delivery schedules at its 3 plants in Taiwan to speed up delivery, thereby boosting its sales in the U.S. by 108.64% this May compared to the same period last year.
According to Sheh Fung, as the pandemic continues to affect capacities of the global fastener industry and as insufficient containers and delayed shipments affect lead times, fastener demand and supply remain unbalanced in the current U.S. home improvement and construction markets. The U.S. and Europe gradually loosening their lockdown measures will help grow the construction market demand further. Primary clients of Sheh Fung have had less inventory than before and continue to place more orders.
Sheh Fung said that the first wave of price increase as a result of the higher wire rod prices quoted by the upstream suppliers has begun to pay off, and that the company is in talks with clients to raise the price again.
Midwest Fastener Expanding Its Headquarters in Portage
美國Midwest Fastener擴大密西根Portage總部
Founded in 1966 and headquartered in Portage, Midwest Fastener Corp. is a leading manufacturer and distributor of nuts, bolts, anchors, deck and drywall screws and specialty fasteners. The company recently purchased Hy-Ko Products in Northfield, Ohio resulting in the need for Midwest Fastener to expand its office space and distribution operation. To secure the company’s US$10.8 million investment in its headquarters and distribution center expansion in Portage and Decatur and creation of up to 90 jobs, the company has been awarded a US$500,000 Michigan Business Development Program performance-based grant.
Goebel Fasteners, Inc.
Announces Austin Hardware & Supply, Inc. as Official Authorized Distributor
Goebel Fasteners, Inc.宣布Austin Hardware & Supply, Inc.
Goebel Fasteners, Inc. announces a new and exciting partnership with Austin Hardware & Supply, Inc. as an official authorized distributor for all products & tooling.
The two companies entered into an agreement that sees Austin Hardware & Supply, Inc. become an authorized distributor for Goebel Fasteners, Inc. product lines which consist of metric & American standard: Blind Rivets, Threaded Inserts, new G-Grip™ Stainless Lockbolt System, Self-Tapping/Drilling Screws, Sealing Washers, Drill Bits, Nut Drivers, Over-Center Toggle Latches, Hand & Power Tools, PPE Equipment, and many more innovative specialty products.
BUMAX Selected by Global Construction Leader Skanska to Supply Fasteners for the Prestigious Slussen Project
瑞典BUMAX 取得斯德哥爾摩斯魯森基建計畫扣件供應合約
Leading Swedish manufacturer of premium stainless steel fasteners BUMAX has been chosen to supply high strength and corrosion resistant fasteners to global construction giant Skanska for the high-profile Slussen infrastructure project in Stockholm, Sweden. Skanska has ordered approximately 15,000 premium BUMAX fasteners for the Slussen infrastructure project in central Stockholm to be used on the new water lock’s sluice hatches.
The Slussen area in central Stockholm is being redeveloped with new stainless steel sluice and flood gates – to help the region cope with the anticipated sea level rise in the coming century. It is a massive and essential nine-year SEK 15.8bn (USD 1.6bn; EUR 1.3bn) project in the heart of Stockholm, one of the biggest infrastructure projects in Sweden in recent decades. It includes road and rail infrastructure as well as rebuilding the lock and sluice system and is expected to be complete in 2025.
Around 90 different types of BUMAX fasteners were ordered for the Slussen project. The largest of these fasteners were BUMAX SDX threaded rods M48x1225 and M36x1125, in class 80. Due to the size and strength of these largest rods, BUMAX collaborated with RISE (the Research Institute of Sweden) to utilize specialist testing equipment, in order to test the mechanical strength of the fasteners. These tests showed that the rods could reach loads of 886kN (over 90 tons) prior to yield and 1,221kN (over 124 tons) on fracture.
Howmet Aerospace Uses Brand New Material for KEENSERTS® Solid Inserts
英國
Howmet Aerospace使用全新材料生產KEENSERTS實心嵌件
The material A286 is an austenitic iron-nickel-chromium alloy. It has a large temperature range from – 196°C up to 700°C and offers excellent strength and superiority to low-alloy steels or common stainless steels. Up to this temperature, A286 displays exceptional corrosion properties.
Typical applications A286 is suitable for:
• Parts for gas turbines i n aviation and power plant construction
• Thermal process engineering
• Automotive industry
• Aerospace fasteners
• Non-magnetic cryogen ic equipment
Mergers & Acquisitions
Birmingham Fastener Has Acquired Steel City Bolt and Screw
美國Birmingham Fastener
併購Steel City Bolt and Screw
Birmingham Fastener is delighted to announce their recent acquisition of Steel City Bolt and Screw. They look forward to serving and partnering with all current customers of Steel City Bolt and Screw. Operations of Steel City Bolt and Screw will be consolidated into the production facility at their corporate headquarters in Birmingham, Alabama. In doing this, the level of service they can offer their valued customers will be increased. Customer service remains paramount at Birmingham Fastener; in-turn, all Steel City Bolt and Screw customers will become valued partners of Birmingham Fastener and be serviced as a top priority.
Novaria Group Announces Acquisition of The Young Engineers, Inc.
Novaria Group宣布併購The Young Engineers, Inc.
Novaria is pleased to announce the acquisition of The Young Engineers, Inc. (TYE). TYE is an expert in the design and manufacturing of aircraft and aerospace hardware, with a primary focus on fasteners and inserts. The terms of the deal were not disclosed.
This acquisition continues Novaria’s expansion into aerospace fasteners. “We have made several acquisitions since April 2020, all of which are unique contributors to our evolving business model,” said Novaria CEO Bryan Perkins. “The acquisition of TYE is an integral part of our strategy to expand our portfolio of proprietary and qualified products we offer customers.” TYE operations will continue at its Southern California facility with its tenured, skilled employees, including former owner and president Pat Wells.
The Effect of U.S.-Taiwan Bilateral Trade Agreement on Fastening Tools
Introduction
The U.S. has long been an important export destination for Taiwan. The bilateral trade value between the two countries exceeds NTD 2.43 trillion. In the late phase of the U.S.-China trade war and when Taiwan and the U.S. came closer in their economic relationship, the TIFA (Trade and Investment Framework Agreement) Meeting which was held back abruptly in 2016 was resumed on June 30, 2021. The meeting focused on deepening the bilateral relationship and assisting Taiwan in post-COVID recovery. In the meeting, Taiwan expressed the intention to sign the BTA (Bilateral Trade Agreement). Both countries will continue to increase interaction to solve trade issues. There is a difference between BTA and FTA (Free Trade Agreement). The purpose of FTA is to achieve an integrated economy, remove trade barriers (such as tariff and trade quota), allow cargoes and services to go freely between two countries, and require 90% mutual tariff reduction. The purpose of BTA is to open up domestic market for both countries, withdraw most of the tariffs or non-tariff barriers, mutually provide preferential trade protocols, and the national power and bargaining chips will determine which side (the U.S. or Taiwan)
will benefit. One of the decisions made in the TIFA meeting was that both countries will work together to push for necessary circulation of resources and speed up custom clearance. Taiwan exports over 90% of fastening tools to the U.S, making itself a highly export-oriented country to the U.S. in terms of this product category. Therefore, if the BTA is signed between the U.S. and Taiwan, it will have a great influence on Taiwanese companies.
With the possibility of the U.S. and Taiwan signing the trade agreement, the critical task for Taiwan is to gain better preferential tax or favorable conditions from negotiations for Taiwanese hand tool industry. This article defines fastening tools as hand-held tools for tightening or loosening fasteners including screws, nuts, nails, and bolts. It will focus on and analyze the export and import trend between the U.S. and Taiwan in recent years. It will analyze the influence on the industry before and after the signing of the agreement, and propose a corresponding strategy as a reference for Taiwanese fastener and hand tool companies.
Bilateral Trade Trend of Fastening Tools
Between the U.S. and Taiwan in Recent Years
Table 1 shows the import and export of fastening tools between Taiwan and the U.S. as well as between Taiwan and the whole world. In import, Taiwan imported NTD 2.41 billion worth of fastening tools from the world in 2020, with a 4.21% CAGR for the last 7 years. The country imported NTD 60 million worth of fastening tools from the U.S., with a 2.29% CAGR for the last 7 years. The fastening tools imported from the U.S. took up 2.7% to 3.0% in proportion with little fluctuations and the proportion was down 1.84%.
This is a favorable factor for future trade talks between Taiwan and the U.S., meaning that Taiwan is less dependent on the U.S. regarding this type of product. The result of the negotiation between Taiwan and the U.S. has limited impact on Taiwan’s domestic industries. Taiwan can seek to gain full tax exemption on fastening tools exported to the U.S., based on the principle of fair trade.
In export, Taiwan exported NTD 28.72 billion worth of fastening tools to the world in 2020, with a 0.85% CAGR for the
last 7 years. Taiwan exported NTD 12.45 billion worth of fastening tools to the U.S. in 2020, with a 8.23% CAGR for the last 7 years, much higher than the CAGR of export to the world. Additionally, the proportion of fastening tools exported to the U.S. grew from 28.4% in 2014 to 43.3% in 2020. The proportion of the U.S. market inches closer to 50%, and for the past 7 years this market has had a CAGR of 7.33%. It shows evidently increasing importance of the U.S. market to Taiwanese fastening tool companies, meaning that fastening tools will be critical products for Taiwan to seek tax exemption from the U.S. in future bilateral trade negotiations.
Table 1. Fastening Tool Import & Export Trend of Taiwan
Import of U.S. Fastening Tools to Taiwan in 2020 and Possible Influence
Based on the data from the U.S. and Taiwan Customs and WTO, Table 2 lists the trend of U.S. fastening tools import to Taiwan and the possible influence. Taiwan imposes 5% to 10% taxes on this product category and there is no tax-free item under this category. The top 3 fastening tools imported from the U.S. into Taiwan in 2020 were unadjustable hand-operated wrenches and spanners (NTD 16 million, taking up 24.0%), pliers, clamps and the like (NTD 12 million, 18.3%), and adjustable hand-operated wrenches and
spanners (NTD 10 million, 15.7%). Overall, the import values were not large. If Taiwan and the U.S sign the trade agreement, Taiwan will lower the taxes on fastening tools imported from the U.S. and the decrease in tax income will be around NTD 5.89 million per year which is within the acceptable range.
Table 2. Import of U.S. Fastening Tools to Taiwan in 2020 and Possible Influence
Export of Taiwanese Fastening Tools to the U.S.
in 2020 and Possible Influence
Table 3 lists the trend of Taiwan’s fastening tools export to the U.S. and the possible influence. The U.S. imposes a relatively larger range of taxes between 0% to 10% on this product category, and there are three tax-free items under this category, including hole punchers, staplers and the like, portable pneumatic wrenches, electric socket wrenches. The other 12 items should be proposed as exempted items in future negotiations between Taiwan and the U.S.
The top 3 fastening tools exported from Taiwan to the U.S. in 2020 were interchangeable socket wrenches with or without handles
(NTD 4.66 billion, taking up 37.5%), unadjustable handoperated wrenches and spanners (NTD 1.76 billion, 14.2%), and screwdrivers (NTD 1.31 billion, 10.6%). These three items take up a large proportion of Taiwan’s export value to the U.S. and market share there, but currently are not entitled to tax reduction. If Taiwan and the U.S sign the trade agreement in which the U.S agrees to lower the taxes on Taiwan’s fastening tools, Taiwanese companies will have around NTD 833 million less to spend on taxes every year. In the give and take as Taiwan seeks tax reduction from the U.S., Taiwan should keep an eye that the proposed content of tax reduction should be better than the content of FTA signed between the U.S. and the countries that are rivals to Taiwan.
Table 3. The Trend of Taiwan’s Fastening Tools Export to the U.S. and the Possible Influence
Analyzing the Give and Take Before the Signing of U.S.-Taiwan BTA
A. Taiwan’s Request for the U.S. to Lower Taxes on Fastening Tools:
1. Trade aspect: Seeking tax reduction from the U.S. on Taiwan’s fastening tools. One of the items with more competitiveness is interchangeable wrenches and sockets with or without handles with or without handles, which I recommend should be included in the initial request list. Doing this should help Taiwan’s quality tools enter the U.S. market and help U.S. manufacturers, sellers and consumers get access to products with lower costs. If both parties lower the taxes to zero, it should drive the bilateral trade of fastening tools between Taiwan and the U.S. and expand the market share of the hand tool industry for both countries, and work together to respond to China’s increasing global market share in fastening tools.
2. Industry aspect: Facilitating bilateral collaboration of the fastening industry between Taiwan and the U.S. If the U.S. agrees to lower the taxes on fastening tools exported from Taiwan, it can: (1) strengthen collaboration between Taiwan’s and U.S. fastening tool industries; (2) effectively slow down the global market share of China’s fastening tools; (3) strengthen competitiveness of U.S. hand tool manufacturers (Stanley Black & Decker, etc.) and distributors (KOHLER, Wal-mart, Home Depot, Lowe’s, Menards, Tractor Supply, etc.); (4) integrate Taiwan’s and U.S.’ fastening tool supply chains and increase global market share.
B. The Government’s and Companies’ Corresponding Strategies to the U.S.-Taiwan Trade Agreement
1. The U.S. is the largest export market for Taiwan’s fastening tool industry, accounting for 43.3%, which further increased after the U.S.-China trade war, much higher than the market share of China as the second largest export market for Taiwan, as well as the market share of Germany as the third largest export market for Taiwan. If Taiwan and the U.S. can sign the BTA in the end, it will be a positive encouragement for Taiwanese fastening tool companies.
2. Currently, the U.S. still imposes taxes on socket wrenches exported in great volumes (at a total value of NTD 4.66 billion) from Taiwan, which is an important issue to be negotiated in the future with the U.S. Allowing U.S. fastening tools entering Taiwan to be exempted from taxes won’t create too many impacts because Taiwan’s fastening tool is a thin one. Imposing no tax on imported U.S. hand tools could offer consumers different price options and the impact from this is very limited.
3. No matter how it goes after the U.S.-China trade war and the U.S.-Taiwan BTA, Taiwan still has to transform the downstream steel industries (fasteners, hand tools, etc.) to develop high-value metal products and increase industrial competitiveness, in order to make sure that Taiwan’s fasteners and fastening tool industries can turn crises into opportunities in the trade war and continue to increase global market share.
Conclusions and Suggestions
2020 was no doubt a turbulence to Taiwan and the fastener and hand tool industries. From the trade war to COVID, the resumption of TIFA meeting and the probable signing of BTA, the impact on the industry is quite large. Amid the COVID pandemic and the preparation stage for U.S.-Taiwan BTA, it is suggested that, in addition to providing economic relief measures, Taiwanese companies should adjust their corporate structures and employ business strategies ahead of time, so that there will be enough capacity to cope with when the COVID pandemic slows down and the orders pour in. “Resilient supply chain” is an important task for Taiwanese companies in the post-pandemic era. The supply chain that used to center on “efficiency” will change to center on “resilience”. It will inevitably restructure, regionalize, localize and decentralize.
In the U.S.-China trade war, the ultimate factor that determines which country will gain the most orders transferred is the day-to-day strengthening of competitiveness of each hand tool manufacturing country and company. Taiwan is not the definite beneficiary to get transferred orders, so my suggestion for Taiwanese companies is that derailing from the usual profit loss and gain is not the only basis for determining success. Laying the foundation for the industry and improving technology is the key to success.
Taiwanese fastener and hand tool companies can also restructure the supply chain to strengthen the international and regional role of Taiwan’s products, which will go from CP (Cost Performance) to TP (Trust Performance; Taiwan Performance) oriented. In this way, the world will recognize Taiwan’s fastening tools as high quality and trust-worthy products. Taiwanese government should strive to sign FTA with countries in addition to the U.S. The U.S. accounts for around 40% of Taiwan’s hand tool export, so the U.S.-Taiwan BTA is all the more important for the development of Taiwan’s fastening tools. I suggest Taiwanese companies should keep an eye out and report the industry’s status quo to the government if necessary, so the government can judge from it when negotiating with the U.S. and seek the largest mutual interest for bilateral trade.
Urgent Need for Economic RecoveryTrillion-dollar Businesses to Come in October with iMT Taiwan & THS
With the need for recovery in international businesses and the metal industry thriving again, trillion-dollar business opportunities are foreseeable. International Metal Technology Taiwan (iMT Taiwan), the only international trade fair for the metal technology industry in Taiwan, will once again join hands with Taiwan Hardware Show (THS) as a grand fair at Taichung International Exhibition Center from October 13th to 15th. Held right before the prestigious China Import and Export Fair (Canton Fair), the event is sure to attract buyers from around the world who seek businesses in the post-pandemic era.
One and the Only in Taiwan: a Signature for Metal Technology in Asia
Hosted by Kaigo Co. and co-organized by Taiwan Metal Industry Association, Taiwan Casting Industry Association, Changhua County Industrial Association, and Changhua Importers and Exporters Chamber of Commerce, iMT Taiwan 2021 is the only international exhibition for the metal technology industry in Taiwan. The grand event presents Taiwan’s leading technology in metal material including metal processing and molding, precision machinery processing, casting, forging, welding and cutting, metallurgy, heat treatment, surface treatment and many more. The number of visitors has been growing over the years, making iMT Taiwan a leading metal tech exhibition in Asia.
Exports Drive Domestic Demands and Brings in Customers from All Walks
During the pandemic, Taiwan has been the most reliable partner in the global supply chain. The domestic market growth is driven by the great number of export orders from various industries, and the domestic industry seeks local companies for cooperation to ensure stable production. iMT Taiwan 2020 showed the explosive demand from Taiwan’s electronics and semiconductor industries, with buyers from the electronics industry visiting the fair to find suppliers of metal materials, processing technologies, and precision instruments. With the demand for metal products still being very strong, iMT Taiwan is the best place to contact domestic producers from various industries and expand the source of diversified orders.
Taiwan’s Excellent Performance in Disease Control, Enables the Joint Event to Pave Its Way to Global Markets.
Business opportunities have been growing even faster in the post-pandemic era, and competitors from around the world are sure to return to the game one day. During this time, Taiwanese companies made use of the outstanding performance in disease control and seize the moment in advance. In 2020, iMT Taiwan, together with THS, attracted over 400 exhibitors locally and abroad. With returning Taiwanese entrepreneurs, global buyer partners in Taiwan, domestic businesses, and traders, the number of visitors exceeded 23,000. In terms of scale and successful transactions, iMT is one of the best trade fairs in Taiwan in 2020.
Working Physically and Virtually for More Cooperation
During iMT 2020, THS and iMT Taiwan teamed up with Taiwan External Trade Development Council (TAITRA) to organize online matchmaking for buyers who were not able to visit Taiwan. During the three-day event, 120 meetings were held, with 55 overseas exhibitors from 37 countries striking their deals. This year, online matchmaking sessions will continue to be held, screening potential buyers from previous overseas visitors to be invited to the first round of matchmaking, with an aim to secure overseas orders for exhibitors.
Industry Leaders and Experts Gathering at Premium Tech Forum
Innovative technology brings opportunities and challenges to the industry seeking transformation and upgrades. To facilitate the industry in technological developments and sensing future opportunities, iMT 2021 launches the new Taiwan Metal Processing Premium Tech Forum to invite experts from the industry and the academia to share their knowledge on advanced metal material development, metal casting and forging manufacturing, precision processing equipment and advanced intelligent manufacturing, and more. The goal is to promote Taiwan’s leading metal material technology and process skills to the world, and to reassert Taiwan’s competitiveness on the world stage in metal material production, processing and manufacturing, and its critical role in the metal industry chain.
Subsidies from co-organizers in recognition of the event
The benefits of iMT Taiwan and THS have been recognized by the industry, and Kaigo Co. has sought subsidies from the Bureau of Foreign Trade to grant exhibitors access to more overseas businesses. The co-organizers and associations have increased the amount of monetary incentive for their members to attend the fair. This year, exhibitors will have the opportunity to receive a subsidy of NT$20,000 on a first-come, first-served basis. iMT 2020 has been recognized for its excellent results and more than half of the exhibitors have already made reservations for this year’s show. For more information, please contact Kaigo Co. at iMT@kaigo.com.tw.
Casting Machine Bases / Precision Metal Parts / CNC Machining Parts / Forged and Stamped Parts / Electronic Parts / Sintered Powder Metal Parts / Stamped Parts p16
Air Belt Sander / Angle Grinder / Z-web Non-woven Airfile Belt / Abrasive Mounted Shank flap Wheel / Roll Series / Quick Change Series / Flap Disc Series
Precision Metal Parts / Forged and Stamped Parts / Precision Plastic Parts / Gardening, Accessory Tools / Plumbing Engineering / Pneumatic Valves / Pipe Fittings for Hydraulic Systems / Parts for Bathroom Equipment / Sprinklers / Auto Repair Accessories / Copper Nuts / CNC Machining Parts
Non-Standard Cold Headed Parts, Precision Cast Parts
Blind Nuts / Rivet Nuts / Rivets / Air Tools in General / Air Shears / Pneumatic Hand Tools In General / Hand Tools In General / Hand Rivet Tools, Hand Rivet Nuts / Rivet Bolt Tools / Air Hydraulic Rivets / Rivet Nut Tools / Cutting Tools / Cordless Power Tools / Powered Tools / Auto Repair Tools
Automotive Parts / CNC Machining Parts / Precision Metal Parts / Electronic Parts / Special Screws, Slotted Knob Set Screws, Copper / Iron / Aluminum / Stainless Steel Parts Processing
Various Kinds of Fasteners and Hardware Parts
DE FASTENERS INC.
886-6-3128238
info@defast.com.tw
www.defast.com.tw
886-6-312 6486
ISO-9001
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DOMAS HARDWARE CO., LTD.
886-6-3561247
michael@do-mas.com www.do-mas.com
ISO-9001
886-6-3550256
Stamped Parts / Precision Plastic Parts / Die Casting / CNC Machining Parts / Tubes
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EVEREON INDUSTRIES, INC.
886-4-23399907
886-4-23398677
hoseclamp@evereon.com.tw
www.ydshoseclamps.com
ISO-9001, TAF, TÜV
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Magnetic Tool Mat
EVER-SHINY PRODUCTS CORP. (ESPCO)
886-4-22581166
magnet@espco.com.tw
886-4-22582096
www.magnetic-tray.com
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H.K.C. RICH ENTERPRISE
886-7-2261988
richard@hkc-rich.com www.hkc-rich.com
886-7-2265789
ISO-14001, ISO-9001, TAF, TÜV
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Fastener, Har dware, Plastic, Instruction Booklet Package in Bag
KAN GOOD ENTERPRISE CO., LTD.
886-7-6331111
886-7-6331110
kangood.co@msa.hinet.net www.kangoodco.com
Screw Pack Bags / Machine Screws / Tapping Screws / Set Screws / Long Nuts / Brass Nuts / Post Studs & Studs / Standoffs / Hex Allen Wrenches / Pins & Spring Pins / Split Lock Washers / Threaded Rods / Smooth Rods / Springs / Forging Parts / Stamping Parts / Plastic Injection Parts / All Sorts of Special Fasteners for Home & Hardware / Construction and Automotive Industries
Stud, Bolt, Nut, Eye Bolt, Welded Stud
KAO WAN BOLT INDUSTRIAL CO., LTD.
886-7-6246677
886-7-6246111
kw6242277@gmail.com www.kaowan.com.tw
ISO-9001
Hexagon Head Cap Screws / Hexagon Head Bolts / Long Carriage Bolts / Lag Bolts / High Strength Bolts / Eye Bolts / Stud Bolts / Welding Studs / Hexagon Nuts / Wood Screws / Self-drilling Screws / Machine Screws
Motorcycle Fasteners, Automotive Fasteners, Construction Fasteners, Furniture Fasteners, Customize Fa steners
KO YING HARDWARE INDUSTRY CO., LTD.
886-7-6214655
koying@koying.com.tw www.ko-ying.com.tw
ISO-9001
886-7-6226316
Weld Nuts / Automotive Nuts / Motorcycle Nuts / Special Nuts / Bushings / Customized Special Screws / Bolts / T-head or T-slot Bolts / Wheel Nuts / Automotive & Motorcycle Special Screws / Bolts
Friction Ring Stem, Square Tube Interior
Connecting Nuts, Tube Interior Connecting Nuts, Applicable Tube Diameter, Type for Bicycle Use, Connecting Nuts for Tube Interiors, Connecting Nuts for Tube Interiors, Special Nuts, Spring Snaps, Tack Glides
KUENYUEH INDUSTRIAL CO., LTD.
886-4-7586153
886-4-7586163
sales@kuenyueh.com.tw www.kuenyueh.com.tw
Special Nuts
Automatic Dip Spin Line, Mechanical Galvanizing Line, Hot Dip Galvanizing Line
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MAGTECH MAGNETIC PRODUCTS CORP. (LEAP TONG)
886-2-27904906
export@magtech.com.tw www.magtech.com.tw
ISO-9001, D&B D-U-N-S
886-2-27906482
Nut Driver, Net Setter, Bit Holder
MENG RUI CO., LTD.
886-4-7579885
886-4-7579869
mrcl.w7069@msa.hinet.net
www.bit-holder.com.tw
ISO-9001
Hand Tools / Hand Tool Kits / Socket Bits / Sockets / Hand Tools In General / Hardware / Powered Tools In General
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MING GUU ENTERPRISE CO., LTD.
886-4-25682152
mingguu@gmail.com
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ROP-2HAD Double Trochoid Pump with Motor
WEI LIANG CORPORATION
886-2-29948401 886-2-29934062 wlp29949451@gmail.com www.zenloon.com.tw CE
Pumps / Filters for Hydraulic Systems / Lubricators / Pipe Fittings for Hydraulic Systems / Hydraulic Pumps / Hydraulic Piping Systems (Tube and Hose Assembly) / Hydraulic Motors / Centralized Lubrication Systems
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Scooter and Bicycle Parts, Automotive Parts, Building Hardware, Air Tools, Bathware Parts, Active Components, Spare Parts, Communication Parts, Accessories, Flush Head Self-Clinching Studs, Wheel Nuts
YIH-LIHJEOU ENTERPRISE CO., LTD.
886-4-7876629
886-4-7876529
sales.tseng@yih-lihjeou.com www.yih-lihjeou.com
ISO-9001
CNC Parts, CNC Lathes / Turning Parts / Precision Metal Parts
Outdoor Construction Nails, Concrete Nails, Drywall Nails, Duplex Nails
ZON MON CO., LTD.
886-7-3526549
886-7-3526561
a530811@ms27.hinet.net
www.zonmon.com.tw
ISO-9001
Construction Fasteners / Drywall Nails / Roofing Nails / Wallboard Nails
Fastening Hand Tools Trade Statistics
USA
Source:
Canada
Japan
in descending order according to volumes of 2020
Taiwan
Taiwan
820411 - Non-adjustable
US Hand Tool Trade,
2020-2021
by Sabrina Rodriguez
Data note: The data for this article is derived from Descartes™ Datamyne’ s US Census trade statistics. US Census trade statistics analyze imports and exports 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 Codes 820411 (spanners and wrenches, hand operated, non-adjustable), 820412 (spanners and wrenches, hand operated, adjustable), 820420 (socket wrenches with or without handles), 820510 (drilling, threading or tapping tools), 820540 (screwdrivers and parts thereof), 820720 (dies for drawing or extruding metal), 820740 (tools for tapping or threading), 820790 (interchangeable tools others, and parts thereof).
The United States was undoubtedly impacted in 2020 during the beginning of the pandemic and was further impacted while global trade continued to be disrupted. While the biggest concerns in the supply chain revolved around the demand for personal protective equipment, the entire supply chain became an overwhelming concern and the primary focus. Amongst those commodities were hand tools, which the U.S. generally imports from different countries in Asia and Europe. In 2019, the U.S. imported a total of $1,345,454,299 USD of hand tools which was nearly 11% more than the total imported in 2020. During 2020, the U.S. imported $1,198,933,624 USD and the most significant decrease of imports were seen between February and April 2020.
Considering the recent trade disturbances which have ultimately led to a supply chain disruption, have the imports of hand tools during the first quarter of 2021 increased by comparison to 2020? How much was the U.S. hand tool market impacted during the pandemic? Are there any visible trends that lead to believe we will see a trade surplus or trade deficit in 2021?
US Imports of Hand Tools
Most recently the U.S. has seen an incredible demand for new residential housing which was caused by the lack of available homes during the pandemic. The demand for specific commodities used in manufacturing new homes included fasteners, steel, and hand tools. In Q1 2021, the total value of imported hand tools was slightly over $355 million USD compared to Q1 2020’s total of $296 million USD. The first and second quarters of 2020 had the lowest value of hand tool imports in all of 2020, but then in the third quarter of 2020 the value increased to $355 million USD followed by $359 million USD in quarter four.
820740
China, Taiwan, and Germany account for the majority of foreign suppliers of hand tools to the U.S., followed by Japan, Canada and India. China exported close to 26% more in Q1 2021 by comparison to Q1 2020 which was a total of $23 million USD. Taiwan followed China as the second biggest exporter to the U.S. of hand tools and accounted for a total of $112 million USD in Q1 2021 by comparison to $90 million USD in Q1 2020. Overall, the U.S. saw nearly a 20% increase of hand tool imports in Q1 2021 by comparison to Q1 2020. India increased their exports to the U.S. by nearly 76% during Q1 2021 and Spain increased their exports by nearly 51% in Q1 2021. On the other hand, Japan exported 24% less in Q1 2021 by comparison to Q1 2020 and Brazil exported 20% less in Q1 2021 by comparison to Q1 2020.
Of the subcategories of hand tools with an increased demand in Q1 2021 are 820790 which increased by 20%, 820420 which increased by 24% and 820411 which increased by 31%. The only two subcategories where there appeared to be a decrease in Q1 2021 are 820720 (decreased by 7%) and 820510 (decreased by 6%).
The U.S. has been experiencing widespread delays at the ports, specifically those west coast ports where most of the goods sailing from Asia are imported into. Major retailers are reporting some shortages due to these port delays, but ultimately the supply chain remains relatively fluid and stable. Despite all these recent disruptions in the supply chain, imports of hand tools appear to have normalized during the first quarter of 2021.
United States - Import
US Exports of Hand Tools
While U.S. exports significantly less than it imports, Q1 2021 accounted for $150 million USD of hand tools. The U.S. exported $4.6 million USD more in Q1 2021 by comparison to Q1 2020 which was only a 3.18% increase. Of all the subcategories of hand tools, 820790 increased by 12% which accounted for $5.9 million USD. Other subcategories such as 820411 and 820510 decreased in Q1 2021 by comparison to Q1 2020.
The pandemic impacted U.S. exports of hand tools, specifically in Q2 and Q3 2020. During Q2 of 2020, U.S. exports of hand tools dropped to $110 million USD, and then slightly increased to $121 million USD in Q3 2020. It is without a doubt that the U.S. exports the majority of hand tools to their neighboring countries, Mexico and Canada. Canada accounted for 30% of hand tool imports from the U.S. while Mexico accounted for 15% in 2020. The U.S. exported nearly 23% more to Canada in Q1 2021 by comparison to Q1 2020, however, hand tool exports to Mexico remained relatively stagnant in Q1 2021 by comparison to the same time in 2020. U.S. exports to China, Japan and Germany increased in Q1 2021 by comparison to Q1 2020 which accounted for 68% of the total exports of hand tools.
United States - Export
United States - Export
Interchangeable tools others, and parts thereof, of base metal
Hand-operated spanners and wrenches, nonadjustable, and parts, base metal, other
Dies for drawing or extruding metal, and parts thereof, of base metal
Socket wrenches with or without handles, drives and extensions, and parts thereof, of base metal
Tools for tapping or threading, and parts thereof, of base metal
Hand-operated spanners and wrenches, adjustable, and parts, base metal, other
Open-end, box and combination open-end and box wrenches, base metal
Screwdrivers, and parts thereof, of base metal
Files and rasps including rotary, interchangeable, and parts
Drilling, threading or tapping tools and parts thereof, of base metal
820412 - Spanners and wrenches, hand-
820510
The Future of Hand Tool Trade
The U.S. continues to see a rise in the housing market which is largely composed of new construction. With the newly planned residential housing development, the demand for commodities within the hand tools categories is expected to increase exponentially in 2021. It’s promising to see Q1 2021 imports of hand tools to the U.S. increased when compared to Q1 2020 as it’s expected to set the stage for the demand further in 2021. With so many countries ramping up manufacturing and production thanks for the work force becoming vaccinated and returning to full capacity, supply is expected to remain stable in order to fulfill the global demand for hand tools.
