Taiwanese Furniture Parts Suppliers Maintains Growth in a Tough Environment

Manufacturers survive by differentiating themselves from the competition

By STEVE CHUANG

Despite a sluggish 2013, most of Taiwanese furniture parts makers have not slackened their efforts to continue developing through improved production capability and better.

The three manufacturers described below are noted for their consistent efforts to sharpen their competitive edges.

Liang Harng

One supplier that competes well on production capability is Liang Harng Industry Co., Ltd., founded in 1986 in Taichung County, central Taiwan.

Liang Harng started out by making plastic rollers and bearings for OA and household furniture. Manager Angus Tsai explained that to set itself apart from the competition, his company insisted on the exclusive use of POM (polyacetal) plastic imported from Germany to produce meticulously built steel balls into each of its plastic rollers for structural durability and long lifespan.

This dedication to quality helped the company stand out in the line and, according to Tsai, it quickly evolved into Taiwan's largest supplier with a 60%-plus share of the domestic plastic roller market in the early 1990s. Tsai went on to say that the company also became the first certified foreign supplier of plastic rollers to Japan's Hitachi Koki.

Noting that ball bearing slides were increasingly becoming used as an economical alternative to plastic rollers on furniture during the 1990s, Liang Harng resolved to develop this as an OEM (original equipment manufacturing) business in 2000 and joined the K/D furniture parts supply chain of an European company. Since then, the company has extended its product line to include houseware parts such as plastic and zinc alloy hinges, adjustable feet, and drawer slide rails.

Good Production Capability Ensures Brisk Growth 

“In fact,” Tsai said, “Liang Harng continued relatively brisk growth in 2013, mostly on stable orders from customers in both the U.S. and Europe, our primary overseas markets. This achievement boils down to our well-honed production capability that puts us on solid ground for competing in the increasingly competitive market.”

Tsai reported that Liang Harng employs a full line of manufacturing facilities for pressing, bending, welding, and so forth, along with a complete powder coating line and plastic injection molding line. “With these facilities, we achieve a self-sufficiency rate of over 80% in our production,” he stated. “This enables us to better satisfy customers with speedy prototyping and flexible production.” Almost all of the company's plastic injection molding machines were operating at full speed in the last quarter of last year.

“As the market is constantly changing, high-variety production is the key to survival for Taiwanese suppliers in today's competitive landscape," Tsai continued. “Our own flexible production capability effectively bolsters our competitive advantage.”

To maintain growth momentum in the year ahead, Tsai reported, Liang Harng will reinforce cooperation with its customers in the joint development of new products. “We are gradually diversifying from OEM into ODM (original design manufacturing), mainly based on customers' trust in our capability,” he claimed.

One result of the firm's capability is a newly launched adjustable table leg, developed completely from scratch with reliance on the company's know-how and experience to meet a European client's requirements, that allows easy, effortless 15cm height adjustment. The leg is made of aluminum die castings coupled with an exquisitely coated plastic cover at the end for an integrally shaped exterior structure, ideal for use in both commercial and household furniture.

Tsai said that his company spent a considerable amount of money and manpower developing this product and the necessary molds, and that the investment has paid off. “Since we finished developing the leg December," the manager said, "we have already delivered two batches to the customer. This makes us increasingly optimistic about the product's marketability, and more confident in our R&D and production capability.”

Tsai concluded by saying that while continuously improving its production capabilities and the efficiency of its production lines, Liang Harng is constantly striving for breakthroughs in new product development. All these efforts, he believes, will assure the firm's sustainable development.

Shen Shan

Another maker that has placed heavy emphasis on setting up sound, integrated in-house production lines is Shen Shan International Glide Mfg. Corp., established in 1981 also in Taichung County, central Taiwan.

Shen Shan began life by by turning out plastic injection furniture parts and, after more than 25 years of dedication to the field, has built up a comprehensive product portfolio. With 35 workers in its 33,000-square-meter plant, the company now manufactures a variety of plastic furniture parts including plugs, casters, and related accessories, as well as a series of hardware parts, which are exported to Australia, the U.S., Germany, and Canada.

The company's managing director, Wu Sen-mao, said that as an experienced furniture parts maker on both an OEM and ODM basis, Shen Shan is proud of its complete production lines and warehousing facilities. However, it is the company's seasoned know-how in mold development that has helped it grow into a highly competitive maker in the line. It currently has a stock of more than 1,000 of molds at its plant.

“Thanks to our ability to develop molds in house," Wu commented, "Shen Shan achieves production efficiency so that, if necessary, we can directly add more molds to accelerate production and shorten delivery time for customers. In addition, this ability brings high flexibility in production and variety of products, and helps us to integrate our production lines to secure good product quality and cut production costs.”

Experience-based R&D

R&D is another of Shen Shan's advantages in the competition against other furniture parts makers. “Because Shen Shan has solid know-how in the application of industrial plastics such as PVC and PE (polyethylene)," Wu explained, "we can provide professional advice and helpful information about the characteristics of materials to help customers decide when they want to develop new furniture parts. For example, we can help customers reinforce the structure of new parts and improve materials formulas so that the the parts can be adapted for use in different environmental conditions.”

With the contribution of its skilled R&D team, the company has recently added medical hardware and related accessories, which require more advanced production technology and facilities, to its collection of products.

“I must say that Shen Shan's long-time dedication to production helps us to gain customer trust. We are earnest in our effort to use all possible methods to reinforce our production capability, so that we can create win-win opportunities for both us and our customers,” Wu concluded.

OHLA

OHLA Plastic Co., Ltd., established in 1993 in Taichung County (now Taichung City, where the two companies profiled above are also located) is characterized by the expertise it offers clients and the consistent effort it expends on organizational management.

OHLA's product portfolio includes casters, plastic hardware, and tube plugs for OA furniture such as computer desks, as well as screwdrivers. With a heavy emphasis on quality, the company does everything it can to control outsourced raw material, and this has made its products well respected in the market. The firm has faced pressure to start providing low-price parts, but it is unwilling to compromise on quality.

OHLA pays strong attention to customer service. Joan Chen, senior sales manager, said, “We can offer know-how and advice to clients with new ideas and designs for furniture parts, and support them in developing those ideas. If we receive a clients' drawings or prototypes of new furniture for use in cold climates, for example, we will suggest that they choose proper cold-resistant material to make the new product with a sturdy structure.”

Also, with a strong capability in mold design and production, OHLA is good at analyzing the feasibility of new products for its clients, Chen stresses. In short, it is invaluable expertise relating to the production of furniture parts that differentiates the company from its rivals, which are able only to deliver low-end product in large batches.

Sound Management

To create more value and further set itself apart from its competitors, OHLA has recently undertaken a series of measures to improve its organization, including workforce training along with sales, production, and R&D management--measures that other companies have largely ignored.

Chen said, “We pursue better operating performance and sales by improving our financial structure and product quality, and we have worked hard at PM (production management).” For instance, in response to customer feedback the company has changed its packaging processes and methods to make its furniture parts more durably storable.

To survive in the increasingly tough global competition, OHLA has moved to increase the added value of its products by developing high-end parts for medical and sports devices. By sharpening its competitiveness in terms of production, R&D, and service, the company intends to keep growing even under the overwhelming pressure from its rivals. (SC, Jan. 2014)