Consecutive growth in machinery exports under Russia-Ukraine war: TAMI

According to survey results released by the Taiwan Machinery Association (TAMI) on March 9, nearly 60 machinery manufacturers have been affected since the war between Russia and Ukraine broke out. The initial estimate of the affected orders amounted to more than USD$6.9 million, or approximately NTD$200 million.

TAMI Chairman Wei Tsan-wen said that the Russian-Ukrainian war is a global concern. According to the association's statistics, Russia ranked 21st in Taiwan's machinery exports last year, at USD$276 million, accounting for only 0.8%.

Although the impact of Russian exports on the overall machinery industry is limited, it still has a certain impact on individual companies under the gradual increase in sanctions and the extension of time. In addition, the Russian-Ukrainian war has led to a sharp rise in the prices of energy and raw materials, which is unlikely to recover in the short term. Therefore, it is expected that raw materials and shipping costs will remain high.

Wei added that although the New Taiwan dollar exchange rate has been affected by the strengthening of the US dollar, it has continued to depreciate to NT$28.3 recently, but inflation concerns and the international situation are factors introducing uncertainty.

February statistics mark it as the 18th consecutive month of growth since September 2020, and indicated the best performance of exports in February in the past three years, showing significant global demand for machinery and equipment.

The good news is that in February, the export of machine tools was USD$231 million, ranking fourth in exports, a 59% increase over the same period last year. The export performance of controllers in February was significant as well, with an export value of USD$145 million, ranking fifth, an increase of 225.9%, showing that although the current controller delivery time is still long, the impact of the chip shortage has eased.