The automotive industry is recognized as the leading industry among all the other industrial sectors. The supply chains of automotive industry spread all across the world market, affecting all the related sectors. Recently, with the impact of COVID-19 pandemic, many supplier chains are affected and the delivery is difficult as well as the order requests are impacted. These issues together affect the automotive industry with it corresponding industries. Even if now many nations are opening their markets, but since the development of the pandemic is still gloomy, most suppliers are hesitate about buying new capital goods as their investment. Moreover, the appreciation of NTD also impacts the machinery sector in Taiwan.
Chairman Hsiao of TAMI is also the leader of TAMI Forming Committee, who pointed out that nowadays the development of automotive components are to be light, environmental protective and lower cost. Many compound materials except certain metal sheets like pure irons, others are treated differently, such as plastics, iron, aluminum, are made to be more endurable. With the newly updated physical features, one die set can achieve many procedures at once, rather than utilizing many dies for one workpiece. Moreover, this also make the die with better precision.
In order to set a convenient repairing system for automotive industry, many car components are manufactured by processing modules. Automotive components are made in small-volume with large variety which is different from the conventional manufacturing trend. For better productivity, automation is a necessity as well as fastened mold and die change rates. That are the keys to the success.
President Hsiao shared that smart production can help increase productivity, lower production cost, and enhance quality while cut the in stock rate. These benefits, help manufacturers to optimize the product quality and quantity, and upgraded. However, the encounter of COVID-19 pandemic, the trade war between the US and China, NTD appreciation, ECFA, and RCEP trade obstacles are difficulties that may affect the domestic machinery development as many local manufacturing suppliers may hesitate on their capital good investment.
Hsiao indicated that according to the export data in September provided by TAMI, it is shown that machinery export is 2.1 billion USD, which is an increase of 0.8% compared with last September. The total export value from January to September is 18.74 billion USD, which is a decrease of 8.0% compared to the same period of last year. With the positive growth in this September, this year's (2020) single-month export finally stopped for the trend of six consecutive months of decline, and September's machinery export value ranked top 10. Many sub-industries in the machine tools industry also have two-digit growth, including inspection devices, power transmission items, powered hand tools as well as wood working machines. However, a machine tool sector has a big decline for about 30 %, and the exchange rates are the most important issue that will affect the competitiveness of export. Even though the export of machinery in September, if counted by the USD, has increased 0.8%, but once if the calculation is done by NTD, it is reduced by 5%. The exchange rate between USD and NTD is the main issue that affect the export competitiveness of Taiwanese suppliers. The exchange rates are more than 29 NTD to one USD, no matter how hard manufacturers work, the situation is still difficult to them.
Encountering the development trend, Forwell will cope with the trend of high variety and low order requests by improving their own productivity in order to be flexible to the future.