Taiwan's hand tools industry is on the cusp of change
2022/12/29 | By CENS
As the third largest hand tools exporter in the world, Taiwan's total hand tool exports value reflected the surge in demand in 2021, with the overall figures steadily reaching USD$4.79 billion, a significant increase of 27.4% compared to 2020 and breaking the historical value on the record as the economy had rebounded and metals had seen a considerable price hike. Growth statistics in 2022 are likely to continue the trend, where in the first half of 2022, Taiwan's hand tools total export value could surpass USD$5 billion.
Noting how the domestic hand tools industry has been moving away from the traditional OEM model in recent years, Taiwan Hand Tool Manufacturers' Association (THTMA) Honorary Chairman David Huang pointed out that average unit prices have been steadily increasing year by year now. While total exports are not yet comparable with China's performance, Huang pointed to the industry's strong foundations as a factor for companies to develop toward high-end markets.
To develop towards the high-end markets, suppliers must tap into new technologies. Many government-backed schemes to bolster digital transformation implementation measures in Taiwan's traditional sectors have been ongoing in recent years. Several suppliers from different industries, including the hand tools sector, attended a government and industry-hosted event in late 2022 to share their experiences and results regarding implementing digital transformation.
The program was in its second year, with many metal industry suppliers implementing lean manufacturing concepts to achieve digital manufacturing as their first step. This allows suppliers to quickly identify inconsistencies and issues early on in the simplified, lean manufacturing process and improve flexibility to adapt to fast-changing market trends.