Fred P.C. Huang, president of Great Teco Whirlpool Co., was elected chairman of the Taiwan Association of Machinery Industry (TAMI) at the association's annual general meeting in Taipei on March 27. He takes over the post from P.T. Chen.

TAMI was established in 1945 and now has more than 2,200 companies as members. It is the second-largest industrial association in Taiwan, smaller only than the Taiwan Electrical and Electronics Manufacturers Association (TEEMA). It has 23 committees, organized by industry, including machine tools, textile machinery, national defense and aircraft, pollution-control equipment, materials-handling machinery, and semiconductor-processing equipment.

At the recent meeting, outgoing chairman Chen noted that machinery is one of Taiwan's outstanding industries, performing well even in these times of global economic slowdown. According to TAMI statistics, the island's machinery industry chalked up a total production value of NT$450 billion (US$12.96 billion at NT$34:US$1) last year. This was an increase of 12.5% over 2001; exports during the year grew as well, by an estimated 8% to 10%.

Stressing the improvement of services to members, the new chairman said that TAMI will serve as a bridge between its members and the government, and will also deepen relations with foreign industrial organizations.

"Many of our member companies are small or medium in size," the chairman commented. "They are unfamiliar with the government's industrial policies, and in this situation TAMI needs to provide a channel of communication between them and the government."


Appeal for Government Help


Huang called on the government to give the machinery industry a shot in the arm by helping manufacturers acquire the industrial land they need to expand their operations. "Taiwan's machinery industry has long been eager for government assistance, as the industry is in a period of transformation," he explained. "Only the provision of cheap industrial land can help our domestic machinery makers boost their international competitiveness."



Although machinery manufacturers in mainland China are exerting pressure on domestic producers by selling low-priced machinery in the international market, Huang is confident that Taiwan's machinery industry will maintain its international competitiveness. "The mainland's machinery industry has been growing rapidly because of its lower production costs," he commented, "which enable manufacturers there to sell their products at low prices in the international marketplace. In this situation, however, Taiwan's manufacturers can maintain their competitiveness by continuing to develop sophisticated, high-added-value machines."

Huang believes that Taiwan's machinery manufacturers still have an advantage over their mainland rivals, because domestic companies have stronger R&D capabilities as well as marketing and distribution skills. Besides keeping them competitive, these advantages also afford the island's machinery makers higher profit margins.

Many observers believe that the war in Iraq will affect growth in many industries, but Huang is optimistic that his industry will continue expanding. "Despite the global economic slowdown," he explained, "the output of our machinery industry grew by more than 10% last year. This sound, healthy growth will help us weather the turbulence caused by the war, and I think that overall growth for the industry will be 5% to 10% this year."

Huang also predicts that some sectors of the island's machinery industry, including machine tools, textile machinery, and woodworking machinery, will benefit from post-war business opportunities.