Page 40 - Taiwan Hand Tools 2022-03 Edition

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INDUSTRY NEWS

Challenges Ahead Moreover, many companies have chosen to direct
their focuses inward by stabilizing internal operations
Despite the successful year, there are concerns that and employee morale as external factors, such as the
the growth would be less sustainable, at least into the first worldwide travel restrictions and lockdowns made it difficult
half of 2022. The pandemic has disrupted many facets to do business. This has resulted in greater R&D efforts
of the economy; beyond the congested ports, suppliers to roll out tools that make it easier for the user, be it for
across industries have remarked how the disruption has professionals in their work environment or DIY amateurs
made it difficult to predict the market’s demands. The tinkering in their free time, who wish to use tools designed
circumstances in the hand tools sector appear similar for ease of use and reduce physical stress.
to other export-oriented industries in Taiwan, namely
machinery or semiconductors, where a deluge of orders Price Hikes
concentrated beyond traditional peak season months could
mean fewer orders in the future during the traditional peak While Taiwanese products’ price tags often cannot
season. Industry experts have speculated the phenomenon compete with Chinese’ affordability, the island’s companies
as potential hoarding behavior among buyers or as they have always prided itself on offering quality over quantity
seek to avoid empty inventories in the future should the at reasonable prices. Though, price hikes on shipping, raw
disrupted supply chain is slow to recover. materials, and other factors, have pressured Taiwanese
companies from upstream to downstream to reconsider
Yet, there is room to be optimistic in the long run. their pricing strategies. For instance, China Steel’s
Hardware and hand tools are especially unique as demand announcement of the arrival of high steel prices has
for these products is largely tied with the state of the strengthened the resolve among sectors that heavily rely
environment the tools are used in. Governments in various on the material, to consider raising prices as well.
countries are eager to bolster their economies after the
pandemic, which will prompt investment into infrastructure The new situation has only served to prove that the
and new technologies. For instance, the U.S.’s USD$1 days of low-priced products have come to an end due to
trillion infrastructure bill that was passed in mid-2021, will inflation and scarcity due to supply chain issues. As with
direct funds into fixing public infrastructures like roads most industries, the hand tools sector will continue to
and buildings, and expanding broadband internet services steadily produce and ship crucial tools, considered among
across the country. On a narrower scope, developing the foundations to ensure work can be carried out in other
industries like electric vehicles will require different sorts of industries.
tools and hardware to build.

Data from Bureau of Foreign Trade, Table created by CENS

Taiwan Hand Tools 2022 Issue