cens logo

Some 29% of Taiwanese Manufacturers Are Upbeat About Business in H1

Mar 09, 2016 | By CENS

news-photoA third of Taiwanese manufacturers are optimistic about business outlook in the first half of 2016, according to TIER’s survey.

A survey recently released by the independent think tank Taiwan Institute of Economic Research (TIER) shows that 29 percent of local manufacturers polled in January by the institute feels optimistic about business prospects in the first half of this year, up 6.6 percentage points from 22.4 percent posted in the month earlier.

In the survey, 16.8 percent of the respondents sees gloomy business outlook, decreasing 11.3 percentage points from 28.1 percent registered in the previous month.

A total of 54.2 percent of respondents felt neutral about the business outlook in the coming six months, down 4.7 percentage points from 49.5 percent registered a month earlier.

Respondents in manufacturing sectors who expected business to improve are mostly engaged in making educational and entertainment-related products. Those who felt business will likely deteriorate are mostly engaged in making wood and bamboo products, petrochemicals, non-metallic minerals, porcelain and ceramic products, glass and glass products, cement and cement products, metallic structure and architectural components, cutlery and tools, data storage media units and duplication, construction and basic civil engineering construction, and insurance sectors.

The manufacturers and operators who felt business to remain lukewarm are mostly engaged in operating abattoir, textiles mills, yarn spinning mills, fabric mills, industrial chemicals, manmade fiber manufacturing, petroleum and coal products manufacturing, electric wires and cables manufacturing, audio-video electronic products manufacturing, bicycles parts manufacturing, real estate investment, and securities sectors.

Based on the responses of the polled manufacturers, the institute's Manufacturing Composite Indicator for January this year, which was adjusted for seasonal factors on moving average, slightly decreased 0.09 points to 90.77 points from 90.86 points registered in December 2015, declining for the third consecutive month.

The institute points out that the latest indicator has roughly stayed within this insignificant fluctuation range since June 2015, similar to the reading in the second half of 2009 and the first half of 2013. Minor fluctuation, the institute notes, suggests a flat growth in the island's manufacturing industry.

When the institute was conducting the survey in January, the island's exports in that month contracted 12.97 percent year on year, marking the twelfth month in a series of worsening year-on-year monthly declines. In that month, the island's exports to mainland China, the Association of Southeast Asian Nations (ASEAN) block, and the U.S. all plunged. The exception was the European Union, to which the island's exports increased 3.4 percent year on year.

Nevertheless, the institute's Economic Forecast Center projects the island's exports will likely rebound in the second quarter, ending the three-consecutive-quarter downtrend since 2015.

The center's director general, M.D. Sun, analyzes that although the island's exports still posted double-digit recession in the first month of this year, the decline will likely slow to single-digit rate in the second quarter in light of three emerging, encouraging signs—strengthening yen-to-greenback rate relative to the weaker NT-dollar, rebounding oil prices (Brent crude being above US$36 and WTI above US$39 a barrel as of March 7 compared to sub-US$30 in early 2016 ), and aggressive rollouts of non-Apple mobile computing devices at the Mobile World Congress 2016 held in Spain.

He points out that the strengthening Japanese yen (having exceeded 112:1 to the greenback recently compared to 120:1 just a couple months ago) is giving relief to Taiwan's machine-tool makers, which have lost considerable international orders to Japanese makers taking advantage of the sharp revaluation of the yen before its recent rise.

Like its exports, Taiwan's imports in January registered double-digit year-on-year drop of 11.69 percent, though the island's international trade still posted a surplus of US$35.12 billion in January, representing a decrease of 19.24 percent from the same month of 2015, according to TIER.

The institute's data shows that the island's consumer price index (CPI) inched up 0.81 percent year on year in January regardless of plunging oil prices worldwide. The index rose due mostly to hiking vegetable and fruit prices caused by heavy rainfalls on the island. The institute points out the CPI reading suggests inflationary and deflationary pressures are not likely to impact for the time being Taiwan's economy although fear of deflation remains due to slowing business.

In the meantime, the island's wholesale price index (WPI) tumbled 4.82 percent.


Industry Reports

Latest Chinese-U.S. Trade Talks Mark Chance of Higher-Level Meetings and Ease Market Tensions</h2>

Latest Chinese-U.S. Trade Talks Mark Chance of Higher-Level Meetings and Ease Market Tensions

Jan 14, 2019

The world waited with bated breath as Chinese and U.S. representatives met during this week to deliberate over whether the trade war would finally come to a reasonable conclusion. Throughout the entirety of the trade war early last year, from escalation to the tentative 90-day truce borne from the G20 Summit in Argentina between President Xi Jinping and U.S. counterpart President Donald Trump...


ARTC Teams Up With 18 Companies to Form Self-Driving Vehicle Union</h2>

ARTC Teams Up With 18 Companies to Form Self-Driving Vehicle Union

Dec 28, 2018

November 20 marks a huge milestone in Taiwan’s self-driving industry. The Automotive Research & Testing Center (ARTC) joined hands with 18 brands, including Acer ITS Inc., Global UniTek, Shin Wei Automotive Industrial and others of Taiwan’s top-to-bottom industrial chain to form the Autonomous Vehicle Industry Alliance. Their overall aim is to shore up support for a new, innovative operation m...


An Alliance Between Ford and VW Could be Announced as Early as Next Year</h2>

An Alliance Between Ford and VW Could be Announced as Early as Next Year

Dec 11, 2018

There is news of a far-reaching alliance between Ford Motor and Volkswagen, according to those familiar to the matter, reported CNBC. The two world’s largest automakers plan to announce the alliance next January, a partnership that would encompass sharing assembly plants in the U.S. to avoid new the wave of tariffs, joint marketing and distribution as well as product development, possibly on t...



Industry In-Focus

Latest Chinese-U.S. Trade Talks Mark Chance of Higher-Level Meetings and Ease Market Tensions</h2>

Latest Chinese-U.S. Trade Talks Mark Chance of Higher-Level Meetings and Ease Market Tensions

Jan 14, 2019

The world waited with bated breath as Chinese and U.S. representatives met during this week to deliberate over whether the trade war would finally come to a reasonable conclusion. Throughout the entirety of the trade war early last year, from escalation to the tentative 90-day truce borne from the G20 Summit in Argentina between President Xi Jinping and U.S. counterpart President Donald Trump...


Taiwan Firms Kicks off 2019 at ArabPlast </h2>

Taiwan Firms Kicks off 2019 at ArabPlast

Jan 10, 2019

The biannual ArabPlast 2019 is marked as the most indicative benchmark as the largest trade expo for plastics, petrochemicals and rubber industry in the MENA region. The show kicked off on Jan. 5, attracting 336 exhibitors from 27 countries. Taiwanese exhibitors also attended, led by Taiwan Association of Machinery Industry in a 34-member strong delegation, a size just shy of China and India. ...


ARTC Teams Up With 18 Companies to Form Self-Driving Vehicle Union</h2>

ARTC Teams Up With 18 Companies to Form Self-Driving Vehicle Union

Dec 28, 2018

November 20 marks a huge milestone in Taiwan’s self-driving industry. The Automotive Research & Testing Center (ARTC) joined hands with 18 brands, including Acer ITS Inc., Global UniTek, Shin Wei Automotive Industrial and others of Taiwan’s top-to-bottom industrial chain to form the Autonomous Vehicle Industry Alliance. Their overall aim is to shore up support for a new, innovative operation m...



Supplier News

Antrc Industrial Corp. offers bumpers, parts, decoration strips, skid plates, radiator, radiator grill, headlights and rear lights and will be exhibiting at Automechanika Shanghai to tap into the Asian markets. (photo courtesy of Antrc Industrial Corp.)

Antrc Industrial Corp. Aims for High-End Auto Parts Industry for Asian Markets

Dec 05, 2018

Antrc Industrial Corp. focuses on manufacturing plastic parts, metal parts and other automotive parts in the aftermarket industry. The firm can roll out parts and products that match with customers’ needs and the industry pulse in this changing and competitive market. Having deep roots in the AM industry, Antrc can deliver with its complete supply chain, from designing, molding making and finally...

ANTRC INDUSTRIAL CORP.


NHC and YangPo products satisfy demands for different automobiles. (photographed by Tseng Lung-nan)

Brake Maker Nan Hoang Rides on Biz Upswing to Offer More Clients the Best

Dec 04, 2018

For more than five decades, Nan Hoang Traffic Instrument Co., Ltd (NHC) has been one of the major manufacturers of specialty vehicle friction materials in Taiwan and around the world. Chairman Austin Cheng has been carrying out their “double-arrow developing plan” for this year. In one aspect, through its private label YangPo, NHC aims to adopt a more effective marketing strategy for selling own-...

NAN HOANG TRAFFIC INSTRUMENT CO., LTD.


Intime offers high-quality performance brake calipers. (photo courtesy of Intime)

Intime's Products Sought-after by Professionals Worldwide

Dec 04, 2018

Founded in 2013, Intime Auto Parts Co., Ltd., specializes in making performance brake calipers and performance shock absorber systems. Intime takes pride of its “n&b performance” series. The firm's n&b ceramic brake pads, which are made of low metallic NAO material, is capable of functioning without damaging the brake discs. Also notable is that the brake dust can be removed easily from the al...

INTIME AUTO PARTS CO., LTD.



Insiders' Views

Megvii Technology Founder and CEO Tang Wenbin

Part 1 Megvii Technology Founder Interview: Face++ AI Facial Recognition sets eye on Asia, starting with Taiwan

Sep 07, 2018

Using facial recognition to remove security checks and recognizing criminals sounds like technological applications out of a movie, though much of it is already implemented in everyday life. Having been founded for only seven years, Megvii Technology Limited, or more commonly known for its facial recognition and AI application Face++, owns critical technology by combining both, and now, recently ...

FOXCONN TECHNOLOGY


Megvii Technology Founder Interview Part 2: Face++ AI Facial Recognition sets eye on Asia, starting with Taiwan</h2>

Megvii Technology Founder Interview Part 2: Face++ AI Facial Recognition sets eye on Asia, starting with Taiwan

Sep 07, 2018

Tang Wenbin, founder and CEO of Megvii Technology, will be visiting Taiwan next week, but accepted an overseas interview with Economic Daily News on Sept. 6. This is the second installment of the interview. Aiming for a complete application; forming a city’s “brain” Q: What are the goals and strategy for the next phase? A: When the company first started off, we had to find a way to impl...

FOXCONN TECHNOLOGY


MPN's Editor-at-large Provides Holistic, In-depth Insights into U.S. Market for Powersports</h2><p class='subtitle'>Industry veteran suggests Taiwanese suppliers establish market presence as priority</p>

MPN's Editor-at-large Provides Holistic, In-depth Insights into U.S. Market for Powersports

Industry veteran suggests Taiwanese suppliers establish market presence as priority

May 24, 2018

One of the concurrent events held during the 13th Taiwan International Motorcycle Industry Show (Motorcycle Taiwan 2018), the seminar titled “Turning New U.S. Powersports Business Opportunities” was rounded off with overwhelming acclaim from the audience as a resounding success, mostly thanks to the excellent quality of the lecturers invited, all of whom are seasoned veterans and experts at high ...



Exhibition Highlights

Taiwan Firms Kicks off 2019 at ArabPlast </h2>

Taiwan Firms Kicks off 2019 at ArabPlast

Jan 10, 2019

The biannual ArabPlast 2019 is marked as the most indicative benchmark as the largest trade expo for plastics, petrochemicals and rubber industry in the MENA region. The show kicked off on Jan. 5, attracting 336 exhibitors from 27 countries. Taiwanese exhibitors also attended, led by Taiwan Association of Machinery Industry in a 34-member strong delegation, a size just shy of China and India. ...


2018 AAPEX Post-Show Report</h2>

2018 AAPEX Post-Show Report

Dec 24, 2018

The 2018 edition of Automotive Aftermarket Products Expo (AAPEX) kicked off from Oct. 30 to Nov. 1 at Sands Expo Center; a total of 6,269 exhibitors came from 43 countries/regions, a 4% growth compared to last year’s figures, using up over 5,000 booths. Organizers estimate that over 162,000 professional buyers from approximately 135 countries visited the largest show of its kind in the North Amer...


Source: show organizer

The 19th Fastener Trade Show Suzhou - China's leading one-stop purchasing platform for fasteners, machinery and supporting products

Dec 05, 2018

As a large international fastener specialized exhibition, the 19th Fastener Trade Show Suzhou will connect the upstream and downstream of fastener manufacturing industry. Focusing on end users and building a global fastener trade platform are the highlights of the show. The 17th Fastener Trade Show Suzhou, successfully held during 26-28 October 2017, was highly praised by exhibitors and visito...