Taiwan mold industry
1. Current status of Taiwan's mold industry
In 2017, the output value was 52.2 billion Taiwan dollars, which was a 3.0% decline compared with 2016. Although the recession continued, the recession slowed down a lot; in terms of export performance, it continued to be sluggish, with an export value of 19.4 billion Taiwan dollars, mainly The reason is that emerging countries such as Thailand and Malaysia have reduced imports of mold products from China, and have increased the imports of mold products from South Korea, Singapore, and Japan, indicating that the countries that have signed the FTA are already in effect, indirectly crowding out Taiwan’s export trade. At present, in terms of mold products, stamping molds, plastic molds, glass molds, and extrusion metal molds all have a decline in exports compared with last year. In 2017, Taiwan's mold export trade was facing a marginalized situation. At the same time, the domestic economic downturn led to a squeeze in consumption, and domestic demand also fell sharply. Under the attack of internal and external troubles, Taiwan's mold industry has felt a lot of pressure. If domestic demand continues Weakness and continuous expansion of export crowding, Taiwan's mold industry is bound to seek new industrial strategies and transformation.
Taiwan mold industry is mainly based on the domestic market, with an export ratio of approximately 34 to 36%. In the export part, the export value has remained at around 20 billion Taiwan dollars in the past five years. Taiwan's mold products can be divided into four categories: "Stamping/forging molds", "Die-casting/powder metallurgy molds", "Plastic rubber molds" and "Other molds". In terms of export value, plastic molds are exported the most each year, 2017 The annual export value is 430 million US dollars, accounting for about 67.7%. The second is the stamping and forging die, the export value in 2017 was 180 million US dollars, accounting for 28.3%. In terms of exporting countries, the top three exporting countries in 2016 were China, the United States, and Thailand, which accounted for 22.6%, 13.3%, and 8.4% of the total exports respectively. Further analysis, the products mainly exported to mainland China are stamped/forged Molds are the majority. Products exported to the United States are mainly stamping molds and plastic injection and compression molds, while Thailand is mainly based on plastic and rubber molds.
In terms of imports, China’s import value in the past five years is about NT$5 billion, and the import volume is about 20,000 metric tons. The main imported products are molds for plastics and rubber. Looking at 2017, the import value is about NT$4.6 billion. It is 19,622 tons. In terms of importing countries, in 2017, the top three importing countries were China, Japan, and South Korea, accounting for 65.7%, 18.3%, and 2.8% of total imports respectively.
2. Indonesia industrial structure and mold development
Indonesia economic growth is mainly driven by consumption and investment. Under the economic and trade policies of the government to improve infrastructure and develop maritime countries, it continues to attract foreign investment. At the same time, as the number of middle class gradually increases, the domestic consumer market also grows steadily. Promote the prosperity of the overall consumer market. Indonesia’s economic growth is mainly derived from private consumption, and Indonesians have no concept of saving, so they will consume when they get money. Therefore, the overall market situation shows that Indonesia is a country with huge consumer demand and labor demand, and most of it is used for domestic demand. Therefore, export sales are lower than imports; and in basic industries, raw materials, components, and molds all rely on imports, and production equipment for molds, electronics, motors, metal, and plastics processing industries is relatively old.
Indonesia’s machinery industry has a huge demand, but due to the lack of raw materials, insufficient parts, and OEM support, the degree of vertical integration is poor, and the government’s unsound development policy for the machinery industry has resulted in few large factories setting up local factories. It is mainly exported to the local area.
According to Indonesian mold import and export data, it can be seen that Indonesian mold products are mainly imported, with fewer exports, so there is a large trade deficit. In terms of items, the main imported mold products are "rubber or plastics and supply "Injection and die-casting molds for manufacturing semiconductor devices" and "pressing, punching, and impact tools" accounted for 38.1% and 22.2%, respectively. According to the top five importing countries in 2017, they are Japan, China, South Korea, Taiwan, and Thailand.
As mentioned above, Indonesia is a country with huge domestic demand. However, due to the old equipment and insufficient vertical integration of raw materials and related peripheral industries, few international manufacturers are willing to invest here, and they are all imported directly. Molds; and Indonesia is still unable to manufacture or assemble plastic machinery and equipment, and all have to rely on imports. Therefore, the self-made rate of the molds used is less than 20%, that is, 80% of the molds need to be imported from abroad. According to Indonesian customs data, thousands of container molds are imported from Japan, Taiwan, China, and South Korea every year, which shows that Indonesia has a huge demand for plastic machinery and molds.
The plastic injection molding machine imported from Indonesia is the largest, mainly used in household products, home appliances, and automobile components, followed by plastic extruders, which are used in wire, pipe, or shaped strips, and many are used for recycling. Production of raw materials and packaging molds; and blow molding machines, mainly used for plastic containers. In Indonesia’s mold industry, 80% of molds are imported from abroad due to old equipment and demand greater than supply. However, due to the lack of raw materials and components, in addition to the automotive industry, other industries, including molds, have insufficient vertical integration capabilities. Therefore, few manufacturers set up factories directly in the local area, and they all adopt the direct import method; most foreign-funded enterprises that can set up factories in the local area have one-stop production capacity or enter together with large enterprises to become their satellite factories. Therefore, in Indonesia, local mold manufacturers hardly have any competitiveness, so Taiwan mold manufacturers have a high degree of competitive advantage.
Although the global economy has stabilized and the global economy will continue to be optimistic in 2018, this phenomenon is not seen in Taiwan’s mold industry. The mold industry is usually a leading indicator. In the past, Taiwan’s mold industry output value was positively correlated with global economic growth. However, starting in 2017, the opposite trend has appeared. Taiwan’s mold output value in 2017 was NT$52.2 billion, and its export value was NT$19.4 billion. Both output value and exports were at a record low in the past five years, which is almost close to the level of the 2008 financial tsunami, which is worrying; therefore, it is worrying to improve mold quality and strengthen exports. Expanding markets in emerging countries is the top priority of the mold industry. Therefore, internally, smart molds will be expanded to mold manufacturers, the overall industrial value chain will be improved, and the domestic industry will be assisted in the transformation and upgrading. It is expected that the mold industry will still show a recession in 2018, with an estimated output value of NT$52 billion and an export value of NT$19 billion.
With regard to the new southward policy, it can be found that many of the machinery, molds, semi-finished products, and information equipment required by Indonesia's manufacturing industry are heavily dependent on foreign imports. In the Indonesian automobile and motorcycle industry, a substantial increase in demand in the past three years is expected The demand for its components and molds has also grown. Taiwan’s industries are highly integrated, whether vertical or horizontal and have established a complete settlement platform, which is very competitive. Therefore, it is recommended that Taiwan mold factories develop and improve in the direction of smart molds. Mold precision and quality capabilities, strengthen mold design talents, strengthen cooperation with international manufacturers, advance the Southeast Asian market, and at the same time entrust sales agents and provide technical support to Taiwanese factories invested in Indonesia for manufacturing and marketing strategic alliances, and jointly develop Indonesia Domestic and third-place markets.