Stand Tools Stands Out For Tool Innovation

In the short 15 years of its existence, Stand Tools Enterprise Co., Ltd. Has driven into the upper echelons of the ratchet-screwdriver and magnetic pick-up tool business. The firm is now the global leader in the first category, and is poised to seize the crown in the second thanks to its constant innovation.

Stand's remarkable rise can be attributed to the solid teamwork of the company's 40-some employees, whose efforts led to revenues of over NT$250 million (US$7.2 million at US$1:NT$34.6) last year. The company's enviable profit margins, says president Jason Shiao, are the result of efficient management and unmatched R&D capability.

"Stand is currently the world's top ratchet- screwdriver maker," he says, "because we have the most models, the biggest production volume, and the most comprehensive range of product-function options and combinations. These same competitive advantages mean we are now positioned to become the world's top supplier of magnetic pick-up tools in the near future."

Design-mania Stand's rapid success lies in the company's unmatched capability in innovation and development. Shiao personally heads an R&D team of five highly talented experts. "Innovation and development are my work, hobby, and life," he says with a smile.

Shiao has over 23 years of R&D experience in electrical circuitry, machinery, and hand-tool design. The indefatigable executive says he sleeps only four hours a day and spends all of his available time researching and designing "anything interesting," whether it's production-line setup and equipment or a hydraulic cooler for a central processor.

"The soul of our company is R&D-oriented," he states. "It is manifest in our employees and our facilities." Everything from the company's highly flexible production lines to the drinking-water supply system has been designed or redesigned in- house.

Shiao's love of invention is clear to anyone who visits his office. In front of his desk is an expensive high-end fuse-deposition modeler (FDM) for rapid product prototyping, enabling him to indulge his passion whenever he wants to. According to Shiao, the prototyping machine can turn out a screwdriver-handle mock-up in four to eight hours, compared with about 24 hours using previous- generation technology. The machine produces samples that resemble the real thing in appearance, color, and functions, and it can be linked directly to mold-development machinery, saving both time and money.

Thanks to its R&D zeal, Stand Tools has registered over 110 patents and is now adding about one or two more each month. "We have become a synonym for innovation in the industry," Shiao claims.

The firm's rapid, cost-effective development capability is strengthened by its long-term experience and its expertise in mold-development. "We utilize core-change molds in our plastic- injection parts production," Shiao says. "The advanced, high-precision molds, though relatively expensive, save us a lot of time and cost in developing molds for new tool handles."

Another Stand strength is its unmatched know-how in both standard and advanced materials, including plastic, alloys, and magnetic steel. Superior know- how in this area, Shiao says, gives his firm a decisive edge over foreign rivals.

Outstanding Performance Stand now accounts for over 80% of Taiwan's exports in the ratchet-screwdriver category. It has developed over 5,600 standardized parts that it can assemble into a nearly infinite variety of screwdriver models, providing just about any function/price combination a customer could want. "Like building blocks, the more pieces you have, the more functions, styles, and price combinations you can supply," Shiao says. Stand offers over 1,700 ratchet and multifunction screwdrivers. The average gearless ratchet screwdriver made by Stand uses over 30 parts, Shiao says, giving these products unrivaled precision, functionality, and durability. Stating that a good product goes far in the market, he says his company has sold over 30 million units of one specific ratchet alone since its introduction a few years ago.

The ISO9001-certified Stand currently turns out about 600,000 ratchet and gearless screwdrivers per month at its 6,000-square-meter assembly plant in Taichung, central Taiwan. "Our close, long-term ties with over 370 satellite plants have made us an extremely streamlined maker," Shiao says. "Three flexible assembly and quality-control lines are operated by well-trained workers to turn out items in both large-volume and small-batch runs. This approach has helped us improve our profit margins."

All of Stand's output is exported to major international tool brands in the U.S., Europe, Japan, and other markets; production is mainly on an original design manufacturing (ODM) basis. The company is also trying to sell own-brand products directly to large-scale retailers in the U.S.

Innovation Over the past two years, Stand has unveiled three items that are expected to become hot-sellers in overseas markets.

The first is a multifunctional wall-mounted hand- tool holder assembly designed to replace workshop tool holders and shelves. The magnetic-bar assembly can be attached to a wall or any vertical surface by screws, or fixed in place on metal surfaces such as car fenders using a high-load- capacity magnetic strip. The body of the tool holder is made of high-grade aluminum alloy.

The assembly has two portable bit-holding sets that can be interchanged with other sets according to user needs; the sets can also be detached for independent use. There are also several flexible plastic D-shape rings on the front of the tool-holder assembly which can grip larger hand tools such as screwdrivers, pliers, nippers, hammers, and adjustable wrenches.

"Our original intention," Shiao says, "was to provide a storage solution that could replace all of the tool-holding devices, carts, and cabinets in a workshop." According to the president, the new tool-holder assembly has been well received by most of Stand's major customers, including renowned international tool brands.

The second new addition to Stand's product lineup is a roller-type magnetic pick-up tool. The new tool features unmatched precision due to its power- enhanced magnetic roller-rod and an innovative rubber clip on the rod to push small items to the non-magnetic sides for sorting.

The third innovation, one of the "secret weapons" that Stand expects to help it become a key player in the international magnetic pick-up tool market, is a magnetic pick-up tray which the company calls an "automatic" pick-up tray. The wheeled tray (12 x 12 inches) features unmatched capability because of its main feature, a magnetic roller which has a rotating power-enhanced magnetic rod inside that attracts small items such as screws, bolts, nuts, and even small-size hand tools onto the magnetic roller and releases them onto a tray when it rotates away.

The "automatic" tray has two handlebars, letting a user carry it easily, and three soft rubber wheels to allow it to be rolled about. The tray can also be used as a tool-carry tray at any workplace.