Makers in Taiwan Continue to Upgrade to Weather Global Downturn

Many in Taiwan's manufacturing sectors are likely feeling confused, as if the carpet has been pulled from underneath them, especially after their considerable efforts to upgrade manufacturing skills and machine tools over the past few years. The global financial crisis to many in manufacturing in Taiwan and perhaps elsewhere seems to have happened overnight and without warning. Many decision makers, especially in the downstream side of supply chains, were most likely more hopeful than realistic, a side of business management that often forces executives to pray than be textbook practical.

The age-old scenario still holds-progression, upgrading and learning take place in manufacturing just as mountaineers tend to climb uphill-but the weather is unpredictable and could change overnight as business conditions sometime do, which can catch manufacturers off-guard. The thorny issue is what can mountaineers do midway up a slope, after all the costly gears have been bought and altitude sickness training done, when the erstwhile sunny, calm turns into unforgiving gales? Another, perhaps even more unmanageable issue is the "concreting" of labor skills, especially for older climbers. Even when mountaineers are air-lifted off precipices, can they be retrained to take on other tasks, such as meticulously, routinely turning miniscule screws into every third or fourth pre-drilled holes on circuit boards?

One of the more insidious impacts from the global financial fallout is the declining construction projects in Taiwan, which is taking an indirect toll on demand for various manufactured parts. It's the age-old chain reaction. Stop building structures or various sorts and the demand and supply chains are rattled and could come off their sprockets. The same, although less green, analogy applies in the car-making sector. Shut down car assembly lines and the entire supply chain grinds to a halt, from mining for metallic ores to making even tiny bolts that hold license plates, which technically speaking has to be corrosion-proof, a feature without which makes later removal, both DIY or professionally, unnecessarily difficult.

However one argues for or against the various aspects of the "bottom-line," and with the global economic downturn still uncertain in its path and duration, those manufacturing in Taiwan, especially the forward-looking and hardy, are holding fast. Those who have invested in equipment and skill upgrading are waiting for better times; while the savvy operator who has yet to do so is thinking about buying advanced equipment when suppliers could be motivated to reduce prices.

Precision Parts for Automation Equipment

Jiuh Ching Industries Co., Ltd., established in 1987, is one of Taiwan's most professional manufacturers of parts for automation equipment used in making mechanical, automotive, hardware, electronics, building materials and furniture parts.

Having started up as a maker of locks, the company has successfully transformed into making a wide range of parts for construction, automotive parts, electronics and CCTV (closed-circuit television) applications.

The company says it supplies products to help customers enhance production automation. T.L. Hsu, general manager, says he taps over two decades of manufacturing experience to develop sophisticated parts to increase automation for any production equipment.

With a workforce of 30, the Tainan-based company (southern Taiwan) currently has a monthly capacity of one million parts. The company says it has established an in-house R&D team to design and produce reliable, made-to-order products.

Jiuh Ching notes the firm uses a series of automated equipment in-house to build quality-consistent products. "Using automated equipment has helped us cut production time and meet requirements for fast delivery," Hsu says.

"As the world market is increasingly demanding automation in production processes, I think my company has to keep pace with the world trend in developing innovative products," Hsu states.

Jiuh Ching has expertise in developing sophisticated parts and components for hardware, automobile and motorcycle industries. "We can make any part according to customer's drawings or samples," Hsu says.

The company's current line is roughly divided into four categories, including auto lighting accessories, auto parts, hardware and metal products on OEM/ODM (original equipment/design manufacturer) basis, and pneumatic mechanical parts. Major products for the category of auto parts include water supply fittings, lathe-processed products, lock cylinders, automobile radiator fitting refrigerant fix plates, fittings for cellular phone stations, automobile fast fittings, and electronic connectors.

Remarkable Growths at Home and Abroad

Having achieved remarkable sales growths at home and abroad over the past few years, the company attributes such success to its long-term dedication to developing high-quality and sophisticated products for various applications. "Our effort over the past few years has helped us build a solid reputation among long-term, global clients," says Hsu.

Besides worrying about the global financial crisis, Jiuh Ching has not received new orders since the beginning of September this year, a situation worse than even during the SARS (severe acute respiratory syndrome) a few years ago. However and smug about its prospects amid the rough economic climate-boasting efficiencies inherent with low overhead in small operations-the company believes it can better survive the downturn than rivals.

Besides the Taiwan market, Jiuh Ching has exported to the U.S., Canada, Japan, and Southeast Asia, and has seen substantial growth in orders from the U.S. and Japan over the past year. Hsu believes his company will continue to secure sales growth in industrialized nations where manufacturing automation is taken for granted.

RoHS Certified

Asmith Manufacturing Company, established in 1981 in Taichung City of central Taiwan, specializes in making various industrial hardware, and became one and half years ago ISO9001 and RoHS (restriction of hazardous substances) certified, a prerequisite for supplying the tech sector as electronics.

The company in its early years concentrated on press-mold design and manufacturing, then began making tool-box accessories, boasting it has a 70% share of the Taiwan market for tool-box accessories.

After 1994 when it moved to a new production site in the Taichung Industrial Park, the company began rolling out industrial hardware backed by a steady R&D program. Over the years the company has diversified from selling in Taiwan to exporting, having landed even major orders from global firms.

The company's current line is basically of seven categories: hinges, door latches, draw latches, leveling glides, handles and pulls, door/window regulators, and castors.

Asmith admits to working closely on technical levels with the government-funded Industrial Technology Research Institute (ITRI) to develop innovative products. With an in-house R&D team, the company can complete the development of at least one innovative item per month, and is now speeding up its R&D to widen product range.

High-performance Staple Guns

Apex Mfg. Co., Ltd., one of the most specialized makers of staple guns, hammer tackers, and staples in Taiwan, markets under the private brand "Apexon." Adopting a stringent quality-control system in-house enables the company to develop, build high-quality products.

The ISO9002 and ISO-14001 certified firm says its products comply with the TUV Rhineland Product Safety (TRPS) standard, with more attention being paid to the manufacture of green products.

Apex's current line includes five major categories: lightweight tackers, multi-purpose tackers, heavy-duty tackers, cable tackers, and hammer tackers, some of which are patented in the U.S., U.K., and Japan.

The company boasts it has established a creative internal-control system, which has received an award from the Bureau of Standards, Metrology and Inspection (BSMI) under the Ministry of Economic Affairs. The system has helped to enhance the firm's operating efficiency, from order tracking to manufacturing through marketing globally.

Two years ago, the company introduced an innovative product line-AT-961 and AT-962 "TargetOne" cable tackers. The newly developed TargetOne cable tacker is the latest addition to the company's TargetOne-family products that include staple guns and staple removers.

Heavy-duty Takers

Designed to meet heavy-duty application, the TargetOne cable tacker drives U-shaped cable staples to securely tack various wires or cables into all kinds of surfaces quickly and efficiently. The tacker features modern design, ergonomic form, field-tested performance and durability all packed and delivered in made-to-order packaging. The housing is of high-grade aluminum alloy whose corrosion-resistance, strength and durability make the product virtually indestructible.

Made with the professional user in mind, the tacker has rubber/plastic handle to minimize slippage even when used in high-humidity, assuring consistently perfect tacking job. The new product is available in two versions, 4.8mm (3/16") and 6.4mm (1/4"), in wire diameter.

A more recent introduction is the brand-new Apexon-branded line of AT-911 and AT-916 high-performance, cast aluminum staple/nail guns.

The AT-916 features an easy slide bottom loading system for anti-jamming, integrated safety handle lock for storage, comfortable plastic/metal handle to improve grip and handling, and durable all-metal magazine. The products are suitable for craftsman, hobbyists, and homeowners who want a total solution to their fastening requirements. The power adjustment/control design for the products is to meet specific demands.

With high-grade aluminum alloy housing, this newly developed series of staple/nail guns are fully dependable. One of its most practical features is the "Extended" nose design that makes easy, accurate fastening in recessed and tight areas. And they can drive the most common No. 53 and No. 13, 6mm-14mm (1/4"-9/16") staples and 18-gauge 14mm brad nails.