China Catching Up With Taiwan

John Wolz

Editor�s Note: The following is presented by Taiwan-based Fastener World magazine as part of a news column exchange with FIN .

Mainland China�s hand tools are catching up with those of Taiwan as Taiwan�s manufacturers cooperate to strengthen competitive advantages.
Of the metal products made in Taiwan, including fasteners, hand tools, metal molding, aluminum doors and windows, valves and metal cans, Mainland China has a fair share of only the hand tools and fasteners in the world market.
Japan, China and Taiwan are the three major Asian exporters of hand tools, with Japan�s products being the most favorite. Japan has concentrated on pneumatic and electric tools. China has gained ground in hand tools, such as pliers, screwdrivers, axes, shovels, saws, shears and hydraulic tools. Taiwan�s competitive advantages are in sockets, wrenches, vises, tool sets and gardening tools.

Industrial Zones, Conventions Sought
Manufacturers want the government to develop industrial zones for hardware and technology and a distribution center of warehouses, and combined zones for industries and businesses. Manufacturers want to be able to acquire the land as small and med-ium-size enterprises.
They suggest that government could establish an international-level exhibition center in Kaohsiung, where global conventions could be held, which should be able to bring in more international trade.

Cooperative Partners Sought
To strengthen the domestic competitive environment, Taiwan�s hardware suppliers are seeking cooperative partners to generate more capital and more efficient operations.
For example, casting factories are cooperating with automobile and motorcycle parts suppliers. Research and development companies are teaming up with makers of machine tools.
Because of the increase in labor and land costs and availability of low-cost labor in nearby Mainland China, major screw manufacturers have been marching into Mainland China.
The cooperation is both vertical and horizontal. For instance, several makers will jointly set up plants in an industrial zone, then the wire manufacturers will move in. This is the reason that Taiwan�s screw manufacturers can be so competitive in the world market. They have established a self-sufficient manufacturing sector in the south of the island.
To promote manufacturing efficiency in Mainland China, Taiwan�s manufacturers are abandoning the previous attitude of non-cooperation – everybody on his own. Transplanting the system of overall manufacturing in Taiwan to Mainland China, and establishing a better production system over there, will be the strategies of Taiwan�s manufacturers to achieve the goal of global production.

Global Hardware Production News
Of the 3,800 companies participating in the 2000 Cologne International Hardware & DIY Exhibition, 400 were from Taiwan, making it the largest delegation outside the host country �A four-year project to develop the Taiwan Kaohsiung Kang Shang Been Chou industrial area is complete. The multifunctional smart-type industry area now features a high-speed highway and state road network, and access to the main north-south railway of Taiwan, airport and harbor for import and exports. � The Taiwan legislature, Yuan, passed regulations allowing the people of Mainland China to come to Taiwan for business activities. � American Nylok Inc., through its Taiwan branch, Taiwan Nylok, established a service center for lock screws on two sides of the straits � New ways of running hardware stores are appearing in Taiwan. Some owners run their hardware stores in similar ways to the management style of convenience stores, while also keeping the advantages of competitive selling prices. \
�2001 FastenerNews.com