Taiwan's manufacturers of office furniture and parts are battling a surge in prices for materials such as iron, steel, and plastics by employing new composite materials such as glass and wood plate.

Some say the adoption of new materials can help producers not only reduce production costs, a third of which are accounted for by materials, but also enable them to reach younger consumers in high-end markets, who generally prefer modern-looking furniture.

One domestic manufacturer of metal office furniture says that the surge in prices for materials has been triggered by the huge and still increasing scale of imports on the part of mainland China's manufacturers. At the same time, China's low production costs are limiting the room available to Taiwanese producers to raise their prices and recoup their higher costs.

Taiwanese manufacturers of office furniture are therefore shifting their focus to developing innovative, high-quality products to penetrate upscale markets, rather than maintaining the traditional emphasis on mass production.

A veteran local producer of office furniture says Taiwan is an ideal place to produce such high-end items and related parts because of the strong support of peripheral industries such as for metal parts.

Meeting the Competition Sitting Down

Chuen Lei Enterprise Co., Ltd., established in 2002, is a manufacturer of original design/equipment manufacturing (ODM/OEM) office chairs. Company president Lai Ching-chin has 16 years of experience in the office chair line and a finger close to the pulse of global trends in this line.

At present, half of the company's output is self-designed and the remaining half is produced on OEM terms. The company exports all of its production.

Chuen Lei currently produces offices chairs with composite materials, including nylon, fabric and wood plate. This strategy has helped the company weather the rising cost of iron parts over the past year.

Another factor that helps the company keep its international competitiveness is the influx of ODM orders from the U.S. Half of the company's exports are sold to one ODM buyer in the huge U.S. market, says Lai. Chuen Lei says it ships innovative high-end chairs to the U.S. customer for distribution in various department stores.

At present, the company sells 60% of production to the U.S. and 30% to Japan. Average monthly sales reached NT$15 million (US$439,880 at US$1:NT$34.1) in the first half of this year, compared to NT$12 million (US$351,900) last year.

The company aims to increase sales by 10% this year, matching its performance in 2003. "We saw a 30% annual increase in orders from Japan in the first half of this year because of the economic recovery there," says Lai. "Also we will introduce a new item in the second half of this year which we expect to boost our sales."

Lai says his company has invested NT$4 million (US$117,300) in designing a series of four new chairs models. The new chairs will hit the market by November this year and target the U.S. and Japan markets.

Recently the company has been making all-out efforts to develop new export outlets such as the Middle East. Lai says orders from the Middle East increased by over 20% in the first half of this year, compared with the same period in 2003.

Knocking Down Rivals

Chyi Cheng Co., Ltd., founded in 1990, is a specialist manufacturer of knock-down (K/D) metal furniture. The company concentrates on self-designed items with the aid of founder and president Lai Kuo-ping, a veteran of the metal furniture industry.

The company has a five-person R&D team, each of whom has over 17 years of design experience, says Lai. This talented team, he says, can roll out totally unique and innovative K/D metal furniture that is both practical and visually appealing.

K/D computer desks and clothes hangers are two of Chyi Cheng's most popular product lines. The company employs composite materials, such as metal parts, glass and wood, in its K/D computer desks. "We can adjust the types of components used on our desks to meet market and price concerns," says Lai. "For instance, glass is a major component of our computer desks because Taiwan is capable of producing glass at a competitive price. Glass also opens up new design possibilities."

Three years ago Chyi Cheng began developing a sophisticated computer desk model that allows the keyboard and printer stands to be moved right or left and forward or backward.

The company has secured patents in 16 nations, including 13 European Union countries, the United States, Japan, and Taiwan. It expects to register patents in mainland China in September this year.

Chyi Cheng says its patented furniture items have earned a warm reception at several well-known international furniture shows. "For instance, our patented computer desk was highly recognized at the Singapore International Furniture Show held in March this year," notes Lai. "At the show we received 165 customers, mainly from the U.S., New Zealand and Australia. We finalized on-spot orders of 12 40-foot containers. At the same show held last year, we received orders of only five containers. The order increase indicates that our products are highly regarded by foreign consumers."

Chyi Cheng boasts it has seen annual sales grow by over 20% for years. The company expects revenue to expand at the same pace this year.

Ergonomic Design

Established in 1987, Jia Goang Furniture Industry Co., Ltd. Manufactures office chairs and various furniture accessories. The company has been ISO-9001:2000 certified.

To ensure top product quality and customer satisfaction, the company handles all of its manufacturing processes in-house under a strict quality-control system.

Jia Goang began exporting in 1996. "A foreign customer was attracted by our reputation and high-quality products. Since that time, our sales have kept growing at a rapid pace. Thanks to the influx of big-ticket orders from abroad, our turnover grew by 2.5 times over the past two years," says company president Peter Lin.


Jia Goang regularly turns out newer models to retain and attract customers.


The company has a headquarters and parent plant in Nantou City, central Taiwan, as well as a factory in Shanghai, mainland China. The Taiwan parent focuses on the production of plastic office chairs with cloth covering, while the Shanghai plant produces office chairs made of synthetic and genuine leather for sale to the mainland.

Lin says his company can make sophisticated molds for the production of iron and plastic office chair parts.

Jia Goang has registered three patents, including patents for a mechanical mechanism, specialized fasteners, and chair legs, in Taiwan, mainland China, and the United States.

Lin says his company puts a lot of emphasis on the design of its office chairs to ensure they meet ergonomic standards. "As our products are generally used in offices, we have to design them to meet the needs of office workers," says Lin.

One of the most popular items designed by Jia Goang is an office chair with armrests that can be tilted 90-degree and a height-adjustable backrest to fully support the back and lumbar of the users. The design supports users in a more comfortable typing position. The chair can support a load weight of 2,500 pounds.

The company exports most of its products to Japan, Germany, and Singapore. Over the past few years, the company has become a frequent exhibitor of the international furniture shows held in those three countries, as well as in mainland China.

Integrated Production

Chuan Lin Wang Co., Ltd., is a leading supplier of office chairs and high-quality foam furniture parts.

Established in 1984, the ISO 9001:2000-certified company has three integrated plants with a total production space of 75,000 square feet in Tainan County, southern Taiwan. These facilities can handle various in-house operations, including metal-parts forming, polyurethane (PU) and polypropylene (PP) foaming, and plastic injection molding, tooling, and assembling.

The company is capable of shipping 15-20 TEUs (twenty-foot equivalent container units) a month, compared with only 10 TEUs per month last year.

To meet an influx of orders, Chuan Lin Wang plans to set up a fourth plant near its headquarters.

At present, the company has a work force of 50, including engineers, designers, and administrative staff, who as a team created US$7 million in sales last year. Besides parts for office furniture, the company can supply up to 3,500 office chairs per month. Unit prices for the chairs average between US$10 and US$100.

Since its inception, the company has paid close attention to product quality. "We employ a strict quality assurance system, from design to manufacturing processes," says company president Wang Te-shan. "All items must pass strict testing and evaluation procedures, as well as a reliability and durability analysis program that has been certified by the SGS Yarsley. All the testing procedures are made in accord with the ANSI/BIFMA standards."

To precisely match market trends, the company keeps a close eye on worldwide developments in chair functions. For instance, its 301-1SGAN office chair, made of molded foam, features a height-adjustable seat, four-step backward tilting and locking and adjustable arms.

In general, the company produces products on OEM and ODM terms. Many of its products are patented in Taiwan, the U.S., and mainland China.

Over the past decade, the company has enjoyed substantial success in diversifying its export outlets. Japan, Europe and the U.S. are the company's major markets.

"We are now working with some customers on the development of sophisticated parts for office furniture," notes Wang. "We are also cooperating with a Japanese customer in developing two office chair models and a new armrest that will be exclusively sold in Japan."