High value-added trend stabilizes domestic demands
According to the latest 2018 global machine tool industry survey by Gardner Business Media, Inc., Taiwan is ranked the world's ninth largest machine tool consumer, with a total machine tool consumption of approximately US$2.1 billion, a growth of 15% from 2017.
In the domestic demand market, the machine tool equipment used for metal processing and manufacturing is mainly applied in the automobile component manufacturing industry, the electronic and electrical industry, the aviation and defense industry, and other industries (including petroleum and medical industries).
Taiwan's manufacturing production value has the highest proportion in computer, electronic, and optical products, which comprises about 35% of the total output, followed by the metal & mechanical industry, accounting for about 28% of the total output.
Under the wave of migration and restructuring of the global manufacturing supply chain, Taiwan’s strong manufacturing foundation helps it become a very attractive new production base. Moreover, in 2018 the government offered many incentives to attract Taiwanese businessmen to return to and invest in Taiwan. The up-to-date planning of these manufacturing bases will also bring new business opportunities to the global machine tool industry.
In addition to changes in the market and trade environment, the employment population is reduced, and the development of science and technology has prompted industrial transformation and upgrading. These factors have pushed forward the demand for Turnkey Solution, which is a combination of software and hardware technologies such as smart machine tools, industrial robots, automatic guided vehicles, automatic warehousing, IoT, and artificial intelligence.
For example, FATEK, a subsidiary of FEMCO (Far East Machinery), has developed fully automated production lines for a variety of aluminum rims for large trucks and small passenger cars, which are not only supplied to Taiwanese manufacturers, but also sold to well-known aluminum rim manufacturers from the US and China.
Furthermore, in March 2019, Tongtai Machine & Tool Co. announced that it cooperated with SIEMENS AG and KYMCO (Kwang Yang Motor Co.) to complete a smart factory solution called "Motorcycle Components Smart Production Line". It provides a production line to manufacture six different components with a production mode of small quantity but diverse products, significantly shortening the delivery time from 3 days to 8 hours.
Source: Taiwan International Machine Tool Show
Nina Lin (firstname.lastname@example.org)
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