Abstract: Mainland China has been transformed from a world factory into a world market. The machine tool industry in Taiwan has benefited from the mainland market and has quickly recovered from the impact of the financial tsunami. In 2010, Taiwan’s machine tool exports amounted to 2.995 billion U.S. dollars, a record high, of which exports to China were 1.361 billion U.S. dollars, a proportion increased to 46%, an increase of 16 percentage points. From January to February 2011, the export value of machine tools in Taiwan reached US$ 524 million, a year-on-year increase of 68.2%. Among them, exports to mainland China amounted to US$211 million, a year-on-year increase of 71.9%, accounting for 40.2% of total exports.
After the financial crisis, the export of machine tools in Taiwan in 2010 has returned to the level of 2008, and set a new record. According to the statistics of the Taiwan Machine Industry Association, the export value of machine tools in Taiwan in 2010 was 2.995 billion US dollars, an increase of 72% year-on-year. It is the fourth largest machine tool export area in the world, and its export ranking is second only to Japan, Germany and Italy. In 2010, the value of machine tools in Taiwan was 3.803 billion US dollars, a year-on-year increase of 68%. It is the sixth largest machine tool production area in the world.
Benefiting from the mainland market, the export value has reached a new high
Lu Guodong, president of the Machine Tool Professional Committee of the Taiwan Machine Industry Association, said that mainland China has been transformed from a world factory to a world market. The machine tool industry in Taiwan has benefited from the mainland market and quickly recovered from the impact of the financial tsunami. The main markets of mainland machine tools are automobiles (small displacement), energy, shipbuilding, railways, aerospace, engineering machinery, military and agricultural machinery. Energy is mainly nuclear power generation, aviation is like a large aircraft program, and railways are mainly high-speed railways. If Taiwan's machine tools want to further develop the mainland market, they should analyze the development of high-end and high value-added products.
According to statistics from the Taiwan Customs Department, mainland China is the largest market for machine tool exports in Taiwan, and its share of exports is still increasing. In 2008, Taiwan’s machine tool exports amounted to 3.721 billion U.S. dollars, of which exports to China were 1.115 billion U.S. dollars, accounting for 30% of its total exports. In 2010, Taiwan’s machine tool exports amounted to 2.995 billion U.S. dollars, the highest level in history. China’s exports reached 1.361 billion U.S. dollars, and its share rose to 46%, an increase of 16 percentage points. From January to February 2011, the export value of machine tools in Taiwan reached US$ 524 million, a year-on-year increase of 68.2%. Among them, exports to mainland China amounted to US$211 million, a year-on-year increase of 71.9%, accounting for 40.2% of total exports.
Escape homogenization to ensure profit
Lu Guodong said that Taiwan's machine tool industry is well-known for its well-established settlements, but there are also phenomena of high homogenization of products. He suggested that companies can get rid of homogenization competition by cooperating with international machine tool manufacturers, international mergers and acquisitions, or developing unique products. In this way, it is possible to maintain a reasonable and appropriate gross profit margin, which is also a way for enterprises to achieve long-term development.
Most of the key components of the Japanese machine tool factory are self-made, and the turret, spindle and controller software are developed by themselves. Machine tool companies should develop their own specific components to create product features. Only by taking the elite route to produce high value-added products can the company maintain a reasonable gross profit margin and get rid of the impact of rising exchange rates and raw materials. This is a challenge for machine tool operators in Taiwan.
After the financial crisis, the export of machine tools in Taiwan in 2010 has returned to the level of 2008, and set a new record. According to the statistics of the Taiwan Machine Industry Association, the export value of machine tools in Taiwan in 2010 was 2.995 billion US dollars, an increase of 72% year-on-year. It is the fourth largest machine tool export area in the world, and its export ranking is second only to Japan, Germany and Italy. In 2010, the value of machine tools in Taiwan was 3.803 billion US dollars, a year-on-year increase of 68%. It is the sixth largest machine tool production area in the world.
Benefiting from the mainland market, the export value has reached a new high
Lu Guodong, president of the Machine Tool Professional Committee of the Taiwan Machine Industry Association, said that mainland China has been transformed from a world factory to a world market. The machine tool industry in Taiwan has benefited from the mainland market and quickly recovered from the impact of the financial tsunami. The main markets of mainland machine tools are automobiles (small displacement), energy, shipbuilding, railways, aerospace, engineering machinery, military and agricultural machinery. Energy is mainly nuclear power generation, aviation is like a large aircraft program, and railways are mainly high-speed railways. If Taiwan's machine tools want to further develop the mainland market, they should analyze the development of high-end and high value-added products.
According to statistics from the Taiwan Customs Department, mainland China is the largest market for machine tool exports in Taiwan, and its share of exports is still increasing. In 2008, Taiwan’s machine tool exports amounted to 3.721 billion U.S. dollars, of which exports to China were 1.115 billion U.S. dollars, accounting for 30% of its total exports. In 2010, Taiwan’s machine tool exports amounted to 2.995 billion U.S. dollars, the highest level in history. China’s exports reached 1.361 billion U.S. dollars, and its share rose to 46%, an increase of 16 percentage points. From January to February 2011, the export value of machine tools in Taiwan reached US$ 524 million, a year-on-year increase of 68.2%. Among them, exports to mainland China amounted to US$211 million, a year-on-year increase of 71.9%, accounting for 40.2% of total exports.
Escape homogenization to ensure profit
Lu Guodong said that Taiwan's machine tool industry is well-known for its well-established settlements, but there are also phenomena of high homogenization of products. He suggested that companies can get rid of homogenization competition by cooperating with international machine tool manufacturers, international mergers and acquisitions, or developing unique products. In this way, it is possible to maintain a reasonable and appropriate gross profit margin, which is also a way for enterprises to achieve long-term development.
Most of the key components of the Japanese machine tool factory are self-made, and the turret, spindle and controller software are developed by themselves. Machine tool companies should develop their own specific components to create product features. Only by taking the elite route to produce high value-added products can the company maintain a reasonable gross profit margin and get rid of the impact of rising exchange rates and raw materials. This is a challenge for machine tool operators in Taiwan.
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