Page 41 - Taiwan Hand Tools 2022-03 Edition

39

INDUSTRY TRENDS

Taiwan’s SME notes trends aiwan’s SME notes trends
T

sha
shaping the hand tools industry ping the hand tools industry

for next decade
for next decade

Stephanie Chao
he COVID-19 pandemic’s disruption on the economy Order volume has increased, yet with rising prices
Thas propelled the lesser-known aspects of the global from shipping, delayed orders, raw materials, and such,
supply chain into mainstream awareness, such as the focus Hsiao said these circumstances have made it difficult
on Taiwan as semiconductor chip demands soared. While to do business. In addition, backed-up ports worldwide,
Taiwan is more widely known as the semiconductor hub of especially in the U.S., a significant hand tools market
the world, equally crucial to keeping the world’s economy for Taiwanese exports, had delayed delivery times in an
running are hand tools. The island’s hand tools sector is a unprecedented fashion. At the same time, the influx of
centralized industry hub located in central Taiwan, where orders had prompted Hsiao to question the circumstances
big-name companies, small-and-medium enterprises amid the surge, saying the increase of orders did not refl ect
across upstream and downstream, and subcontractors co- the usual peak season. Along with other industry experts
exist together to fulfi ll the world’s hand tools orders. A hand cited by local media, he believes the order surge could
tool could go through a dozen manufacturing processes, all likely result in a business lull after the influx of demand
through diff erent companies in the area, before returning to and further disrupt the usual business operations and
the original contractor. predictability in the industry.

For Stand Tool, a local hand tool designer and Aging Populations and Talent Retention
manufacturer based in Taichung, Taiwan, representative
Brand Hsiao says companies like them are at the forefront In terms of demographic issues, Taiwan’s traditional
of the supply chain disarray, where smaller companies industries face universal challenges similar to their
face the brunt of dealing with challenges on multiple fronts. counterparts in Western countries. However, while Western
Unlike more prominent companies with the capital to countries heavily rely on imports, manufacturing hubs still
sustain operations through diffi cult times, SMEs have less exist in Taiwan, yet could eventually lack people to work.
of a fallback plan and are more likely to go under during Traditional industries such as hand tools and hardware
crisis times. often have an older, aging workforce, so once they retire,
businesses would be hard-pressed to find replacements
or fi nd and retain younger workers to pass on the know-

Taiwan Hand Tools 2022 Issue