Taiwan's machine tool sectors cornered by rising costs
2021/05/12 | By EDNTaiwan's machine tool industry is experiencing a squeeze from all fronts as the COVID-19 situation in Taiwan and overseas is worsening.
Taiwan Machine Tool & Accessory Builders' Association Chairman Hsu Wen-hsien remarked that while the industry reported order visibility well into Q3, exchange losses, rising costs for shipping, materials, and labor shortage made it difficult for suppliers to profit.
Hsu pointed out that the industry is also considering a scenario where should the post-pandemic shortages become endemic, many overseas clients and governments would contemplate bringing back manufacturing.
The current container shortage situation is dire for machine tool makers, Hsu said. Shipping plans valued at USD$8000 and USD$1200 have risen to USD$25,000, USD$30,000, and USD$6000. University graduates are more likely to seek jobs in the electronics and semiconductor industries, intensifying the labor shortages, Hsu added.
While machine tool suppliers could look to airline freight for shipping, Hsu said the current outbreak situation in Taiwan would bring further uncertainty into the air cargo sector, as cases originated from an airline and quarantine hotel cluster.
