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Home News Corporate FORWELL President Hsiao Wen Lung Suggests Exploring Military Industry Opportunities to Create New Paths for the Machinery Industry

FORWELL President Hsiao Wen Lung Suggests Exploring Military Industry Opportunities to Create New Paths for the Machinery Industry

2023-11-03
2023/11/03
Written by Chen Renyi

According to statistics from the Taiwan Machinery Association, the current export value of Taiwan's machinery equipment is still affected by the global economic downturn. The export value in September continued to decline, marking 14 consecutive months of negative growth. Hsiao Wen Lung, Executive Director of the Taiwan Machinery Association and President of FORWELL Technology Group, stated that the global market situation remains uncertain and is filled with many uncertainties. The main factors contributing to this uncertainty include the U.S.-China trade friction, the Russia-Ukraine war, global inflation, and conflicts in the Middle East, leaving most industries at a loss and even deeply mired in operational difficulties, causing the machinery industry to be concerned about future development.

Hsiao Wen Lung, Executive Director of the Machinery Association, pointed out that many industries still have foreseeable demands for future corporate development. However, due to adverse factors in multiple markets, many companies are hesitant to invest, leading to a stagnation and reduction in orders for machinery production equipment. Although several machinery manufacturers reported positive news after participating in the EMO machine tool exhibition in Hanover, Germany, in September, receiving international large orders, whether the market order heat can gradually increase still needs continuous observation. It is hoped that Taiwanese companies can break through the turbulent market situation and return to normal business operations soon.

Hsiao Wen Lung believes that the series of international events from the U.S.-China trade friction, the COVID-19 pandemic, the Russia-Ukraine war to the current Israel-Palestine conflict and the potential Middle East war have undoubtedly delivered waves of heavy blows to international economic development. The U.S.-China trade friction disrupted the production and market layout of many industries worldwide. The COVID-19 pandemic and country lockdown policies reshuffled the industrial supply chain. The Russia-Ukraine war caused a global shortage of raw materials and severe market inflation. Coupled with the recent Israel-Palestine conflict, if it leads to a Middle East war and terrorist attacks, international situations will be even more difficult to control, and economic recession is bound to deepen. Industries will once again face the dilemma of reshuffling and reorganizing. Although many industries have developed coping strategies and survival strategies in response to market conditions, if the market stagnation intensifies and demand shrinks sharply, it will pose a significant test for the survival of global machinery industry facing a new wave of business crises.

He further analyzed that due to the current unclear global machinery market, it is difficult to predict future development directions. Companies can be described as facing difficulties, especially in swiftly obtaining orders from familiar markets as in the past. Hsiao Wen Lung suggested that companies may consider seeking cooperation opportunities in the military industry market for war-related equipment. This approach can not only create new business opportunities for enterprise development but also temporarily alleviate market difficulties and maintain normal business operations.

Additionally, Hsiao Wen Lung stated that at present, most machinery production equipment is in a period of low utilization, making it the best time for production line reorganization and tidying up. In addition to conducting comprehensive equipment maintenance and safety inspections, it is also possible to appropriately upgrade, improve, and update production equipment. This not only effectively enhances productivity but also pursues development goals that align with future intelligent and low-carbon emission trends.

Currently, FORWELL Group is developing low-carbon equipment in line with environmental sustainability. Besides planning to invest in the research and development of low-carbon, intelligent, rapid mold change system whole-plant equipment and related components, the company has begun creating a production environment that meets carbon tax reduction standards. In the future, the entire range of FORWELL products will be developed and designed to meet energy-saving and carbon reduction requirements, ensuring that all products meet ESG sustainability standards.