Taiwan’s hand tools and hardware sectors brace for H2 2022
2022/08/15 | By CENS⬛ Chao Ting-yu
Throughout 2021, Taiwanese hand tool suppliers were able to maintain business-as-usual operations, leading to export value growth of 27.4%, reaching USD$4.79 billion. The steady performance has continued into 2022. The latest statistics between January to June 2022 continued to show a steady growth: Taiwan's hardware and hand tools exports amounted to USD$2.44 billion, with an annual growth rate of about 8%. The U.S. remained Taiwanese suppliers’ largest export market, accounting for about 42.5% of exports, followed by China with about 8.9%, and Germany at third with 5.4%.
However, the slowly-recovering supply chain saw further disruptions this year as the Ukrainian-Russian war broke out in February, which the impacts eventually developed into inflation and rising prices across the board throughout H1 2022. Suppliers are thus tentatively optimistic, but bracing for worsening conditions into H2, where the impacts of delayed orders and inflation will become more noticeable.
In a strenuous environment, Taiwanese suppliers have the advantage of delivering on timely schedules. De-globalization, where buyers look at shortening the supply chain by sourcing regionally, is now considered a priority. Taiwan boasts industrial hubs for hand tools and hardware, creating a tight-knit environment for buyers to procure products at one stop reliably.
