With the rise of labor consciousness and significant wage increases among workers in mainland China, labor-intensive industries in the Chinese market have gradually lost their competitive advantage. Additionally, the imbalance in the industry supply chain caused by the pandemic has forced many foreign businesses in China to relocate to low-wage countries such as Vietnam and India in order to maintain market competitiveness. This has led to a more comprehensive focus and consideration on the adoption of highly automated or intelligent production lines in the manufacturing industry. It has also increased market attention and expectations for production equipment related to intelligent automation during this pandemic period.
Hsiao Wen-long (蕭文龍), President of Forwell Group and Executive Director of the Taiwan Association of Machinery Industry (TAMI), stated that the impact of the COVID-19 pandemic and the Ukraine-Russia conflict has led to global market price increases for raw materials, imbalances in the industry supply chain, and difficulties in managing delivery schedules. To address the issue of supply chain imbalances, the United States is actively promoting the "Made in USA" policy. Through the concept of shortening supply chains and reducing lead times, stable industry supply chains are being reestablished. This will also impact Taiwanese businesses in strengthening their "Made in Taiwan" (MIT) supply networks, and in the future, the industry supply chain will inevitably be rebuilt, leading to a gradual expansion in demand for production equipment.
President Hsiao also pointed out that in the future, countries around the world will follow the strategy of "Made in USA" to avoid the recurrence of economic downturns caused by supply chain imbalances. This will lead to a significant increase in the demand for setting up factories in various regions and a substantial growth in the demand for production equipment. The regional supply chain restructuring trend is so imminent. However, we are currently in the early stages of recovery from the long-term market decline caused by the pandemic and the Ukraine-Russia conflict. Therefore, it will take some time to achieve inventory reduction and return to normal levels. Moreover, to date, the global economic outlook has not shown signs of improvement. Therefore, we still need to wait for effective resolutions to the inflation caused by the Ukraine-Russia conflict and the restructuring of the pandemic-induced supply chain. Only then can the international economy fully recover. The earliest opportunity for a turnaround is expected to occur in the second half of the year.
President Hsiao stated that in the past 2-3 years, every industry has been affected by the pandemic, leading to severe labor shortages and production delays. Particularly in mainland China, the significant increase in labor costs has eroded the advantage of low manufacturing costs, and it is currently undergoing a transformation phase from being the "world's factory." Many foreign businesses in China have already relocated their production to seek shelter from rising labor costs. However, most Taiwanese machinery companies still rely heavily on the Chinese market as their main sales market. When the Chinese market successfully recovers and achieves stable growth, the demand for automation equipment, which can replace manpower to a large extent, is expected to accelerate significantly. This will present a great business opportunity for Taiwanese manufacturers of intelligent automation and machinery production equipment.
In fact, Forwell has pioneered the "Intelligent Mold Management System" in both mainland China and Taiwan. This system covers three major components: the already implemented "Mold Conveying System," which includes automatic mold-changing trolleys, the "Mold Automated Storage System," and the "Mold Maintenance System." This Intelligent Mold Management System effectively assists metal forming and injection molding businesses by providing a comprehensive and systematic "intelligent automation" management system for molds. Through professional planning, it enables rapid, efficient, safe, and systematic mold handling.
In addition, Forwell's Huai'an factory (淮安廠) in mainland China has completed its plant expansion plan, significantly increasing production capacity. In the future, it will continue to strive towards its goal of achieving an annual revenue of 2.5 billion Yuan. To reach this revenue target, Forwell's intelligent mold management system, including the mold storage system and automatic mold-changing trolley system, which it has pioneered and developed, will be the primary driving force behind revenue growth. These comprehensive equipment systems for intelligent mold management will play a crucial role in boosting revenue growth.