Trade Association Helps Plumbing Fixture Makers in Taiwan Tap Teamwork

Ding Fang Po, a relatively rural district in Changhwa County, central Taiwan, has been quietly manufacturing world-class plumbing and bathroom fixtures for over 40 years, a lifespan soundly maintained by a cluster of dedicated professionals. However, they are facing fierce competition from undercutting rivals in mainland China.

Nevertheless, the outlook may not be totally gloomy: A government-backed program has come to the rescue. The Ministry of Economic Affairs (MOEA) tapped an ancient but effective strategy, teamwork, to help Taiwan-based plumbing fixture makers. For the first time a formal trade association has been formed to marshal synergy to systematically sharpen the sector's competitive edge globally. In addition, the ministry has instructed Industrial Technology Research Institute (ITRI) to help association members develop high value-added products.

After only a year or so of offering assistance, the ITRI's Mechanical and Systems Research Laboratories (MRL) unveiled several crucial water-handling technologies, including strong electrocoat coating, antiseptic film technology, and brass gravity casting technology. The lab has not overlooked the importance of non-technical assistance, also helping the association design common brands and co-promote logos.

Believing that the bottom-line to global success is product differentiation, the ITRI states in a press release that it expects the program to help Taiwan makers of plumbing fixtures introduce innovative products with huge market potential, or products that set themselves apart from those made by mainland Chinese counterparts.

Resource Integration

By integrating ITRI's technological and research resources with years of manufacturing skills and experience accumulated by the cluster of professionals in Changhwa, coupled with Changhwa county government's resources and design programs offered by county schools, the officially-backed effort is expected to help foster long-term development of the plumbing fixture sector in Taiwan, hence keeping its roots in Taiwan.

"It is a three-year assistance program. The agreement reached with the manufacturers lays out the basics: we start developing technologies according to their identification of needs," says Chang-Hsiung Chen, project manager at the Intelligent Machinery Technology Division of MSRL's Information and Resource Technology Department.

Apparently human-sensitive too, Chen says that his organization will help manufacturers build clean processing technologies that would make work settings pleasing, as reports are that many young people today seem to value pleasant work environments as much as other factors when applying for jobs.

Johnny Yeh, chairman of the association and Ferng Wei Co., Ltd., like many other members, has high expectations of the program, saying he hopes to tap ITRI's innovative technology to strengthen membership's marketing. Yeh believes that "it is simply far easier to market a good product."

Yeh says that Ding Fan Po has successfully built the area into the world's No.1 plumbing fixture supply base, one that offers world-class quantity and quality, and one that subcontracts manufactures for all the leading names in the sector.

There has also been industry upgrading over the past 40 years, according to the chairman, and many Taiwan-based plumbing fixture makers have evolved for the better: going from OEM and ODM supplier to marketing brand-name items. "The district has become the global supply center of plumbing fixtures, having come a long way from simply casting valves in modest workshops to turning out faucets and even high-end models," Yeh says, underlining the reality of significant industrial improvement on the island.

Underselling and Encroachment

Not unlike other export sectors, the Taiwan-based plumbing fixture makers are also losing ground to mainland Chinese counterparts, whose cost advantages have gradually wrested market shares from Taiwan in international markets. The competition is ruthless to say the least: "Many Taiwan suppliers are already merely breaking even all due to competitive underselling," says Z.J. Yang, chief executive officer of faucet maker Hsien Chang Metals Co., Ltd., as well as an association member.

Yeh stresses that, amid fierce underpricing competition, the way out for Taiwan makers is to upgrade production techniques and marketing capability, both of which are easier said than done: "The costs are relatively high and most of local makers are simply too financially weak individually to attempt major technological upgrades," he explains.

Cost inefficiencies at Taiwan makers have gone from bad to worse, Yeh notes, as an increasing number of mainland Chinese counterparts have been cutting out the middleman: paring cost by shipping products directly to retailers. Plus the green movement has compounded such problem: "Rising eco-awareness is adding cost to production. Increasing green regulations are banning the global use of toxic processing techniques like Cr6+ or hexavalent chromium. Such trend will definitely further add to our production costs," he says.

Two-pronged Help Needed

Technical-wise, Yeh looks to ITRI to urgently help the association on two fronts: develop less-expensive trivalent-chromium (Cr3+) coating technology to replace Cr6+ counterpart, and acquire needed information on the latest industrial standards adopted by different countries. "Such standards are constantly updated, so we need the association to set up efficient channels to combine, distribute such information to the membership. Or the association can invite validation agencies to send specialists for lectures," he says.

With meager financing hampering marketing upgrades by Taiwan-based makers of plumbing fixtures, Yeh points out, "That's why we urgently need to tap integrated strength: leverage official resources like ITRI to upgrade our technological and marketing capability."

Through the program, Yeh plans to build the association into a trade platform, much as the quasi-government Taiwan External Trade Development Council (TAITRA), on which world buyers can easily source all types of plumbing fixtures. "We need to create a one-stop sourcing environment for world buyers, making their business easier as plumbing fixture specs vary among countries. Moreover, the association will also aim to build a better trade platform, distribution channels as well as quality products at competitive prices," he says. Yeh plans to expand the membership to over 100. "In the future, Taiwan makers of plumbing fixtures will participate in global shows as grouped association representatives, again making the most of organized teamwork," Yeh adds.

Quality-building Members

Some of the association members who have helped to build the quality image behind Taiwan's plumbing fixture sector include Sheng Tai Brassware Corp. (ST), Hsien Chang Metals, Chang Yi Shin Industries Co., Ltd., and Harmony Enterprises Co., Ltd.

Founded in 1976, ST is known for its modern, European-style brass bathroom and kitchen fixtures. The company was highly praised by the New York Times at the 2007 Kitchen and Bath Industry Show (KBIS) in Las Vegas, which also saw 1,000-odd exhibitors.

The ISO9001-certified company ships products under its own "JUSTIME" brand, with major export destinations being Canada, the United States, Europe and Japan.

This leading brass bathroom ware maker is equipped with various efficient production facilities, including gravity die-casting machines, automatic forging machines, CNC lathe machines, machining centers, auto polishing machines, electrophoresis lacquer coating machines, powder coating machines.

Specializing in IR-activated faucets for public-work projects and founded in 1986, Chang Yi Shin meets UL, UPC, CE, FCC and CSA standards, as well as having won several patents.

The company is promoting a patented product-a manual/automatic faucet. The die-cast brass faucet is shaped like a Doberman, silver finished, powered by four AAA alkaline batteries, and distributed with a one-year warranty.

Scald-proof Faucet

Another reputable maker Hsien Chang, founded in 1980, specializes in shower faucets. Having won UPC, CSA, ASSE and ISO9001 certifications and several patents, the company is promoting a patented faucet featuring a pressure balance valve, which shuts off hot water when cold water is cut off. Also temperature programmable, the valve keeps water temperature within three degrees Fahrenheit of the pre-set temperature even when flow volume changes, which effectively stops users from being scalded.

The company's major export outlets are North America, Latin America, Japan, mainland China and Vietnam, with some of its products being marketed under its own brand "Leader."

Harmony Enterprise Co., Ltd., marketing under the I.W.G. brand, offers a diversified range, including bathroom hardware, accessories, faucets, RO faucets, plastic faucets, and shower heads.