Taiwan Hardware and Hand Tool Makers Learn Art of Branding

Taiwan's hardware and hand tool manufacturing industries is heeding the call of brands, enticed by the higher margins that original brand manufacturing (OBM) offers compared to their traditional mainstay OEM (original equipment manufacturing) and ODM (original design manufacturing) output.

The branding wave has been forced along by Taiwan's eroding competitiveness in the lower end OEM and ODM markets, where Chinese suppliers are grabbing market share with rock bottom prices. The trend has also been nudged ahead by Taiwan's government, which is encouraging local manufacturers to globalize and brand their products.

Yet branding is often easier said than done. Brands take time and money to establish, and for the many smaller enterprises in Taiwan the cost can be prohibitive. Some though are taking the plunge, and getting results.

William Tools

One of them is William Tools Co., Ltd., founded in 1999 at the Taichung Industrial Park in central Taiwan. Over the past few years, the company has quickly grown to become one of the most successful suppliers in the sector.

William Tools now employs 50-plus workers and a host of advanced machinery at its 1,980-square-foot manufacturing plant. The plant turns out wrench handles, torque multi pliers and torque wrenches, with total capacity of 2 million sets a year. Meeting the world's major international standards, such as ANSI and DIN, William Tool's hand tools are quite popular among professional buyers, mainly automakers and workshops, in the U.S., Japan and European countries.

William Chiang, president of the company, who majored in machinery and has many years of mechanical design know-how, heads the company's hand tool R&D work. "Improved functionality, ergonomic design and environmental protection are the focus of our development work and help us differentiate our products," he said.

For instance, the company's 72-tooth torque wrench is built with a highly sophisticated ratchet mechanism that allows each small turn to precisely move five degrees to reduce operational effort. The ergonomic design of the wrench body, which has streamlined shape and a nylon handle-makes the wrench extremely suitable for use in narrow working places, such as auto repair and machinery maintenance.

Due to the excellent functionality and design of its products, William Tools has won orders from quite a few major international brands, such as Stanley. "The innovative functions of our products have made William Tools a global name," Chiang said.

Part of that advanced functionality owes to William Tool's collaboration with Eclat-Torq Technology Corporation Ltd., a joint venture formed by several local hand tool makers in central Taiwan to develop digital hand tools and other advanced new products. The DG series digital hand tools, with their compact size and high durability, are proof of William Tool's strong R&D capability.

Chiang mentioned that William Tools will be engaged in rolling out other torque tools and testing tools for professional use, like aircraft production, which requires light, small-sized and high precision hand tools. "This is a challenging field that will prompt us to upgrade our production expertise," he said. "Plus, that will keep profitable in the next 20-30 years." In that time span, Chiang believes that William Tools will continue building a solid name in the line.

SMOOS Operator

Another maker braving the OBM path is Smoos Tool Co., Ltd., whose SMOOS brand won an award for product innovation in Taiwan in 2004.

For over 20 years, Smoos Tool has been supplying hand tools on an OEM/ODM basis, including bit sockets, ratchet handles, hand socket sets, impact sockets, air wrenches, air drills, micro grinders, key wrenches, wrench sets, pliers, chests, screw drivers, grease guns, pin punches, hammers and auto tool kits. At present, 90% of its products are exported to the U.S., Germany, Italy, Romania and other European countries.

David Peng, general manager of Smoos Tool, said the company's motto is composed of just three words-integrity, quality and innovation. "We promise our clients on-time delivery in less than 40 days. We also guarantee that our hand tools outperform DIN- or ANSI-approved models in durability by up to 130%. And we offer a lifetime warranty for every hand socket we sell."

In addition to durability, innovation has been another selling point of Smoos Tool's brand in the global market. For example, the company's SSG-I19 Interchangeable Wrench Set won the bronze medal at the 2006 Taipei International Invention Show & Technomart.

The set consists of a wrench handle and 18 interchangeable sockets and has an easy-to-carry case. Each socket is made of a highly durable and light alloy and fully meets DIN and ANSI standards. The set also comes with a lifetime warranty.

Another innovative product developed by Smoos Tool is a socket series made of chrome vanadium steel and surface treated with a patented black and mirror-like finishing process. The eye-catching finishes can show the sizes of the sockets more clearly than conventional metallic surface, making the products well-received, especially in Korea and the Middle East, according to Peng.

"We are continually adding value to our products through innovation," said Peng. "Moreover, we are developing new types of packaging for our branded products, such as the SSG-I19 wrench set, to hone our brand." Peng's company will display their SMOOS product line at major international trade fairs this year, including the International Hardware Fair in Germany's Cologne, Taipei AMPA and Taipei Int'l Hardware & DIY Show.

Black Bear

Cheng Day Machinery Works Co., Ltd., which was founded in 1971 in Taichung County, is also making a name in the OBM market with its "Black Bear" and "YongSheng" chain hoists, an item that the company can also provide on an OEM basis.

Cheng Day has a workforce of more than 500 persons at plants in Taiwan and China. Its plants have a high production capability and are equipped with advanced manufacturing and quality testing equipment, including GT800A 3D scanning probes, USK6 ultrasonic testers, AVT-LE vibration meters, WT230 digital power meters, MCV-1350 vertical machining centers, computer numerical control (CNC) horizontal machining centers and lathes and welding robots.

At the moment, Cheng Day has built a comprehensive product line of industrial hardware, including electric chain hoists, manual chain blocks, elevator traction machines, marine room overhead cranes, overhead cranes and gantry cranes with crabs, lever blocks, electric wire rope hoists, and cargo/passenger lifts. Furthermore, the ISO-9001-approved company has had its products certified by international standards, including CE and CSA, and by Taiwan's related authorities.

Joanne Chang, section manager of Cheng Day, said her company pays close attention to quality control to ensure the safety of its heavy-duty products. This emphasis on quality earned the company Taiwan's National Award for Small and Medium Enterprise in 1999 and has also laid the foundation for the development of the "Black Bear" brand. The company's branded hoist products are exported to the U.S., Japan, China, Europe and Australia.

Chang said that her company has developed numerous hoists for manufacturing plants and other applications. For instance, its new overhead crane for use in clean rooms has been widely adopted by Taiwan's semiconductor industry and other high-tech sectors. Chang said that production of this item requires consummate know-how in surface treatment and applications of mixed materials to prevent the machine from generating any tiny iron fillings when operating. Also, the company provides turnkey services and helps its clients to install the machines in clean rooms.

Cheng Day has also developed an electric chain hoist that is compact and lightweight (only 16-17 kg), easy to install and remove and, above all, an energy-miser, with an operating voltage range of between 100V and 240V. The machine can lift up to 480kgs in two-fall.

Chang indicated that Cheng Day this year is planning to expand its plant capacity. It has already brought its products into conformance with regulations on use of hazardous substances, and it has been licensed to manufacture 150-metric-ton overhead cranes in China.