Over the past five years, Taiwanese manufacturers of pliers and cutters have been gradually upgrading their material of choice from medium-carbon steel to chrome-molybdenum alloy steel, helping their products pry open the door to the upper tiers of the global hand-tool.

The move has given makers breathing space from hordes of rivals besieging the lower-end of the market from low-cost manufacturing bases in China and other developing countries.

The many Taiwanese producers who have decided to stick it out lower down the value pole, can also welcome a bit of good news as China trims export tax rebates, effectively raising the costs of plier and cutter exporters there. Some Taiwanese manufacturers say foreign buyers have already cooled to Chinese suppliers since the new tax law took effect.

China aside, Taiwanese manufacturers are also worrying about the steady rise in the cost of iron, steel and nickel-electroplating costs, all materials used in high-end pliers and cutters.

High-end Locking Pliers



One high-end hand tool maker in Taiwan is Mightyjaw Tools Co., which specializes in the manufacture of locking pliers with an emphasis on quality.

Founded in 1983, Mightyjaw says its sophisticated locking pliers have earned a strong reputation at home and abroad. In 1987 the company began making tile cutting tools, which now account for half of the company`s output.

"Locking pliers and tile cutting tools share many of the same materials and manufacturing processes, so it was easy to expand our line," explains Chiang Wen-yueh, president of the company.

Like most of its domestic counterparts, Mightyjaw originally made its locking pliers from medium-carbon steel. Over the past five years, the company has been shifting to high-end locking pliers made with chrome-molybdenum alloy steel supplied by China Steel Corp., Taiwan`s largest integrated producer of steel products.

Mightyjaw`s products have been approved under the TUV/GS, CE, CNS, ANSI, and DIN standards and are currently exported to Europe, the U.S., Canada and Japan. Europe alone absorbs 65% of its total exports.

"Our long-term efforts to develop high-end products have won over customers, who claim our products rival Vise Grip-branded pliers in terms of quality," notes Chiang.

Chiang claims that Mightyjaw is a technology-driven company capable of designing and producing pliers in various shapes to meet special customer requirements.

"We are intensely committed to R&D," says Chiang. "Everyone in our R&D department has over 15 years of experience in hand-tool design. They can take a draft drawing provided by customers and quickly turn it into a product fully meeting the customer`s requirements."

At the end of October, the company introduced new multifunctional locking pliers with a drop forged CR-V steel jaw, heat-treated jaw, locking mechanism, long-nose plier tip, wire cutter, adjustable wrench, grip clamp, and strong pry bar.

The company can ship general products within 45 days of order confirmation. And specialty items can be shipped in 60 days.

Like others in the business, Mightyjaw has been taking a hit from increasingly costly raw materials and metal processing services. Chiang says the price of medium-carbon steel and chrome-molybdenum alloy steel rose by 80% and 50%, respectively, over the past five years. She anticipates that production costs will continue to rise in the few months to come.

Chiang says that despite efforts to cut production costs, her company has been forced to raise prices in recent months to account for the higher material and metal-processing costs. "Fortunately, our high-quality products have convinced customers to share the price difference with us," she says.

Chiang says she is not afraid of the price competition from the mainland because many of the company`s customers are looking at quality first. "If they want low-price and low-quality products, they`ll place orders with mainland manufacturers," explains Chiang. "Some of our customers have shifted to mainland suppliers, only to return to us less than a year later because our products are much more reliable than those made in the mainland."

Chiang says that in view of swelling order backlogs, currently topping five months, the company decided to expand.

The new plant will occupy a 36,000-square-foot site next to the company`s present 21,600-square-foot factory in Wufeng Township, Taichung County of Central Taiwan. When the new plant comes into service in February 2008, it will handle all packaging and assembly work, says Chiang. The old plant will be redesigned as a packaging center.

Chiang says that there will be a green area in front of the new production facility to provide workers with a comfortable working environment. "I believe greenery will help relieve workers` stress when they need take a break," says Chiang. "And that should translate into greater productivity and efficiency."

Cutting and Clamping Tools



Another leading manufacturer in this line is Golden Dragon Iron Works Co., which was founded four decades ago. The company supplies cutting and clamping tools for both the do-it-yourself and professional markets globally.

At present, the company`s product lines include pipe wrenches, bolt clippers, cable/wire rope cutters, vises, gear pullers, shears, PVC pipe cutters, PVC pipe/soft tube cutters, clamps, tubing cutters, and tubing cutter/adjustable wrenches.

"Taiwan is no longer a production center for cheap products. So we focus on high-end specialty items produced in small quantities," says Hubert Hung, marketing manager of the company.

Golden Dragon highlights the energy-saving functions and enhanced features of its high-end cutting and clamping tools. "Our R&D department is constantly working to add new functionality to our products," says Hung.

The company commissions professional satellite factories to handle processing procedures and imposes strict quality-control standards at these supporting plants.

Hung says quality, service and punctual delivery are important advantages that give Golden Dragon a competitive edge in the cutting and clamping tool market. They also differentiate the company from rivals that compete on cost alone.

Golden Dragon exports most of its products to Japan and Europe on an OEM and ODM (original equipment/design manufacturer) basis. "Many of our OEM customers are big brands," says Hung. "This confirms our ability to manufacture reliable high-quality cutting and clamping tools."

Although the company can fully meet customers` requirements for multifunctional pliers, Golden Dragon worries about rising production and raw material costs.

Laborsaving Pliers



Power & Hard Industry Co., Ltd. has 30-plus years of expertise in manufacturing high-tier pliers for the global market.

The company says its innovative laborsaving pliers have earned a good reputation at home and abroad.

With the aid of its R&D department, Power & Hard recently introduced a new series of pliers that employ dual-blade ratchet mechanism for uninterrupted gliding action. The pliers use leverage to reduce required energy input by about 50%.

The company heat-treats its products in vacuum furnaces to enhance torque and hardness. It has also obtained many patents around the world for its innovated product designs.

Automotive Tools



Founded in 1968, Daiken Tools Enterprises Co., Ltd., is a leader in Taiwan`s high-quality hand tool industry, with an expertise in manufacturing professional pliers.

The company recently introduced a line of tools for automotive repair. The newly developed tools are patented in Taiwan, the U.S., Germany and mainland China.

Over the past few years, Daiken Tools has steadily expanded production capacity to keep abreast of rising demand. The company attributes its rapid growth to a business strategy rooted in production innovation and superior quality.

Daiken subjects its products to a battery of tests to ensure the best quality, including cold impact strength testing, adhesiveness testing, combustibility testing, insulation resistance testing and dielectric testing. The company says it strictly controls quality at each stage in the manufacturing process, from product development through finishing and packaging.

The strict quality-control policy has earned the company numerous awards and certificates, including Taiwan`s highly prized "Good Design" certificate, ISO9000, VDE, GS and DIN EN 60900, to name a few.

Daiken has also developed an invisible-spring plier series with spring-loaded action. The patented invisible spring design improves comfort and safety of operation by reducing energy input and protecting hands and fingers from strain. The company says the heat-treated spring can operate more than one million times.
(by Ben Shen)