Taiwanese Auto Repair Tool Makers Forge an International Reputation

Quality products at low prices keep the industry growing

Living up to Taiwan's reputation of “Kingdom of Hand Tools,” local suppliers of auto repair tools are earning plaudits for their long-term dedication to R&D and branding upgrades.

Unwilling to compromise in the face of rivalry from emerging countries and realizing the danger of market erosion caused by price competition, most Taiwanese suppliers in the line have worked to redefine their positioning in an upmarket direction.

One supplier said that it was once common to see Taiwan-made products derided in foreign movies and in real life as having poor quality, but Taiwanese suppliers have worked hard to correct that misconception and are now proud of the “made-in-Taiwan” label.

Years Way International
One notable supplier is the Years Way International Co., which has built up a global reputation for its air tools for auto repair and professional use.

With more than 30 years of experience in the line, Years Way is a time-tested manufacturer of pneumatic tools, including air spray guns, impact wrenches, air sockets, air ratchet wrenches, air tackers, air staple guns, air nailing tools, pneumatic grinders, pneumatic buffers, pneumatic stripping tools, and other items, all of which have passed testing for CE and national standards worldwide. The company provides OEM (original equipment manufacturing) and ODM (original design manufacturing) services.

The firm's general manager, Wang Chien-tsu, said that use of computer technology to improve data processing and storage is one means he uses to stay at the cutting edge of the industry. “With our know-how in computer technology,” Wang commented, “Years Way is one of the first companies in Taiwan's hand-tool industry to be certificated by the Article Numbering Center of R.O.C. and to introduce the 4719847 Barcode System. The payoffs are helpful to many dimensions, from operating efficiency and inventory control to customer relationship management.”

Pointing up the importance of customer relationships, Wang commented, the company's sales have recovered to the pre-financial-tsunami level this year, mainly because old customers in Korea, Russia, Egypt, Belgium, and France have started placing orders again.

Wang introduced his company's newest product: a Professional Air Impact Wrench which is as light as a 1/2” air impact wrench but generates as much torque force as a 3/4” model. The new lightweight wrench, he said, has a high-strength aluminum alloy housing and an improved motor system that outperforms competing models. The tool's anvil is made of alloy steel that is subject to special heat treatment for unbeatable durability, while a rear exhaust system allows the tool to exhaust through the handle and keep air away from users. This tool, which is available singly and also as part of an impact socket set, is ideal for car, truck, and boat maintenance.

“In fact,” Wang reported, “we have marketed our products under our own ‘Yearsway' brand for years, and have succeeded in building overseas footholds in several countries. This achievement is attributable to our computer-aided management, R&D capability, and commitment to customer trust.” He religiously believes that Taiwan-made air tools are globally competitive in terms of price and quality, because they sell for an average of only one-third or one-fourth the price of competing models made in the U.S. and Japan while having comparable quality and performance.

A-Kraft
Founded in 1988 in Taichung County, central Taiwan, the A-Kraft Tools Manufacturing Co. is an efficient manufacturer of hand tools for DIY and auto repair purposes with world-caliber management capability.

The company supplies a wide range of auto repair tools, including sockets, socket accessories and sets, socket wrenches, ratchet handles, and combination wrenches for cars, heavy-duty vehicles, and machinery, as well as a variety of hand tools such as screwdrivers, bit sets, pliers, tool cabinets, and tool sets. Around 30% of the company's products are exported on an OBM (original brand manufacturing) basis and the remainder as OEM products.

Few in the line can compare with A-Kraft in carrying out fully computerized organization and production management. The company's chairman, Louis Chen, sees this as the key to A-Kraft's sustainable development.

“We have concentrated on introducing computerized management for some years,” Chen noted, “and 95% of our routine paperwork is now processed through our ERP (enterprise resource planning) system and related MIS. To make sure all systems and application software are well-suited to our organization from the ground up, A-Kraft has had a computer engineering department for years, with 4-5 professional software engineers being employed to work out practical computerized solutions for the constant improvement of our operating efficiency.”

The company has effectively taken advantage of various management information systems to handle inventory monitoring, sales logging, customer relationship maintenance, labor and production scheduling, performance auditing, personnel management, and other matters. “Information technology is ubiquitous nowadays,” said Chen. “Taiwanese makers should make better use of technology to improve the quality of their enterprise management and boost their global profiles. In short, people should focus on R&D and marketing, and let computers handle daily paperwork and follow-up.”

Chen is most proud, perhaps, of his Computer Automated Reminding System (CARS), which he claims was officially recognized in 2010 as an ideal solution for boosting management efficiency in all areas from routine paperwork to production and inventory control.

The system was independently developed by the company's software engineers and linked to a huge-capacity database that was constructed in-house. It is able to provide each worker and director with up-to-date information related to their respective tasks, and to help the company with the evaluation of worker performance.

Chen explained that the system automatically mails reminders to purchasing agents, stock keepers, and delivery workers, day by day, until they report back to the system that their jobs are completed. The system also reports feedback from workers to directors at every stage of work in progress. The system records and stores in the database, good and poor worker performance in the form of number of days ahead of or behind schedule. This information helps directors to evaluate the performance of their subordinates at the end of the year.

Drawing on its cutting-edge e-management capability, A-Kraft has also launched One-stop All Services, which Chen said is committed to providing customers with fast delivery, quality assurance, satisfaction, shipment consolidation, online information, competitive prices, R&D, and innovative products. The company also offers customers online access to the latest information about new products, delivery, and available inventories. “Since routine paperwork on everything from material stocking and manufacturing to pre-delivery inspection, packaging, and shipment is under the control of computers,” Chen commented, “our customers are able to trace their orders through the Internet any time, any place.”

The use of information management systems in assembly and packaging lines also enables the company to serve as a logistics center for customers who operate outlets in different places. Chen explained that his company employs conveyor belt systems coupled with CARS to help customers with pre-delivery shipment organization and destination arrangement, facilitating the movement of ordered products and enhancing value-added efficiency—all of which is part of the company's One-stop All Services.

Poul Chang
The Poul Chang International Co., set up in 1981 as a maker of conventional DIY tools, is a relative newcomer to auto-repair tools but is seen as a rising force in the segment thanks to its market-driven R&D capability.

The company now supplies a variety of tools, including wrenches, multi wrenches, socket wrenches, nipper cutters, pump pliers, trailer accessories, bits, power bits, cargo bars, speed wrenches, socket wrench sets, and cable cutting pliers. It also offers a wide range of general repair sets and sets specifically for engines, chassis systems, and car bodies, as well as rear bicycle carriers, car roof bicycle carriers, and roof racks.

Product manager Alan Huang reported that Poul Chang decided to expand into auto repair tools in 2006 with the aim of developing a sustainable business in the increasingly competitive hand-tool landscape. “We realize that to survive and grow in this field,” Huang noted, “efficient and effective R&D is vital. Now, after years of hard work, our company has obtained numerous patents covering functional designs in the U.S., Taiwan, Germany, and China.”

At the very beginning of its entry into the industry, Huang noted, his company devoted considerable effort to R&D on existing products in the market, and then to improving any defects that were discovered. The company insists that new products cannot be allowed on the market until all user-unfriendly defects are found through real-world feedback by end-users, and then rectified. This effort is well spent, and last year the company scored a 20% business growth despite the gloomy global economy. Most Poul Chang products shipped to professional buyers on an OEM basis for use in workshops and factories worldwide.

The company boasts of a complete product mix and an ample stock of inventory. “Our customers usually need tools in a variety of specifications, but they tend to order small quantities,” explained Huang. “Therefore, a supplier who has these advantages, along with efficient R&D and rapid delivery, is likely to outdo its competitors.”

To further boost its global presence, Huang said, his company will take part in International Hardware Fair Cologne 2012, scheduled for Mar. 4-7, and Automechanika 2012, to run Sept. 11-15, and will put more focus on seeking partnerships in America. The company has also been talking with Chinese automakers about cooperation, which is expected to provide a further boost for business growth in the near future.