OUtlook for Taiwan's machine tool forecast to be bright.
While cautious industry executives feel Taiwan's machine-tool exports are likely to rise 8% year on year this year, optimistic insiders project?exports to rise 10% to US$4 billion based on the upbeat results in the first four months of the year.
In April, the island's machine-tool industry shipped US$320 million of machines, up 1.12% year on year, with?Jan.-Apr. shipments being? US$1.1 billion, up?3.6% year on year.
Chairman Eric Chuo of the Taiwan Machine Tool & Accessory Builders' Association (TMBA) points out that for his company, Hiwin Technologies Corp., the market for its ball screws, linear guideways, and positioning measurement systems is picking up in Europe, Japan, and the United States.
Although?China's market for machine tools as a whole remains flat,?demand for automation systems have outstripped the supplies, having filled?Hiwin's order book throughout the second quarter, according to Chuo.
The chairman says that?China's?needs of machine tools are shifting to multifunctional? types and dedicated heavy-duty?types, suggesting that Taiwan's machine manufacturers should aim to move upmarket to evade?underselling.
China?is already the top?export destination for Taiwan's machine tools, importing 7.4% more of Taiwan-made machine tools in the first quarter year on year. Nevertheless,?Taiwan's exports to China in April alone sank 17.5% year on year, dragging down?Taiwan's exports to China in the first four months to a 0.9% decrease year on year.
President J.C. Wang of the Taiwan Association of Machinery Industry (TAMI) points out that although the April export value was still below the 2012's monthly average of US$350 million, the value was better than the 2013's average of less than US$300 million.
He notes that Taiwan's machine-tool exports to Germany, Italy and England have surged sharply after the European sovereignty debt crisis has?eased. Even the exports to Brazil have returned to normal levels, posting a 7.4% growth in April.
Wang says that?it is still too early to say, based on the April export results,?whether?China's machine-tool market has?recovered. Market slowdown can be concluded when Taiwan's exports to China?continue to decrease in May and June, he adds.
Executives of the island's leading machine-tool makers, including the Fair Friend Group, Goodway Machine Corp., Awea Mechantronic Co., Ltd., Victor Taichung Machinery Works Co., Ltd., Yeong Chin Machinery Industries Co., Ltd., Roundtop Machinery Industries Co., Ltd., Kao Fong Machinery Co., Ltd., Shieh Yih Machinery Industry Co., Ltd., and Taiwan Takisawa Technology Co., Ltd., have said steady orders have been coming in?from? Europe, America, and Southeast Asia in April and May. In the meantime, the orders from? China were mostly placed by makers of cars and?motorbikes. (KL)
