Taiwan's Opportunity Under China-U.S. Trade War Crossfire in 2019

Redirected orders thanks to the China and U.S. trade tensions

The chairman of Taiwan Hand Tool Manufacturers' Association (THTMA) Huang Hsin-te pointed out due to the impact brought on by the China-U.S. trade war, the export value in the hand tool industry increased by NTD$3.2 billion from January to August in 2019, combined with a growth of 4.1% compared to the same period in 2018. He also cited 2018 statistics that hand tool exports from China was ranked first, followed by Taiwan in second. However, since the China-U.S. trade war began, Chinese goods was imposed with 25% taxes, prompting buyers to order goods from Taiwan, with the latter becoming the biggest winner in the trade war.

Previously, President Tsai Ing-wen attended the General Assembly of THTMA, saying that investment from hand tool giants is heated -- two companies have been vetted and two companies are still in the application process. Total investments are estimated at approximately NTD$3 billion. She pointed out that Taiwan's hand tool industry is recognized among the top best worldwide, cementing its status as a hidden champion. In 2018, the export value of hand tools was ranked third in the world, with an approximately 2% increase and even a growth of 5.58 percent in the first half of 2019 compared to the previous year, which made a great contribution to boost Taiwan's economy.

Tsai emphasized the government will consistently introduce intelligent technology to upgrade the industry. Also, by putting up various incentive policies, it encourages firms to invest more in existing operations, paving the way for Taiwan to cement its reputation as the hand tool kingdom in the 21st century.

National Hardware Show

The National Hardware Show (NHS) 2019 kicked off from May 7th to May 9th at the Las Vegas Convention Center in Nevada. Taiwan's hardware tools have always been regarded as the top choice among global key buyers, as the products are innovative and come patent-certified, making them highly sought-after by buyers who want the complete package.

Occupying 288 square meters, around 30 Taiwanese exhibitors that made up the exhibition group to NHS was organized by Economic Daily News (CENS.com), the Chang Hua Importers and Exporters Chamber of Commerce, and the Plumbing Association of Taiwan. Product categories range from bathroom faucet hardware accessories, faucet water filters, and plumbing and electrical parts such as hand tool wrenches, sleeves, insulation tools, ultra-high-power Lithium-ion secondary batteries, terminals and wiring parts, power strips, wire ropes, and extension cords. Other products include aluminum doors and window hardware, aluminum telescopic tool rods, manual pumps, and home gardening tools.

Last year's NHS saw a huge attendance from over 2,500 exhibitors and 28,000 visitors. The show was organized into 12 exhibition areas, including the world's leading professionals such as 3M, The Scotts Co., Louisville Ladder, Hamilton Beach. Notably, NHS set up a new area called “Tiny Living,” which gathered small living structures including miniature houses on wheels, modular construction, park model RVs, and container homes. The tiny living trend has made a substantial impact on the market.

CENS.com was showcased at Central Hall Booth 917, where buyers on site were able to receive the latest news on Taiwan's hardware and hand tool products. Aside from promoting the CENS.com platform, the team offered buyers the most up-to-date industry information for potential business partners to make informed decisions, as well as hand out professional trade magazines like the latest edition of “Guidebook to Taiwan Hand Tools,” a special newspaper edition for NHS, and magazines for hardware parts. This allows buyers to quickly touch base with suitable suppliers and make the best of their time at NHS.