Taiwan's output value for machine tools and related accessories and components in 2021 is likely to increase 15-20% on year amid recovery in demand, according to Habor Hsu, chairman for Taiwan Machine Tool & Accessory Builders' Association (TMBA).
Based on TMBA's survey of its members, most Taiwan-based makers of machine tools expect global demand to rebound beginning the second or third quarter of 2021.
According to TMBA statistics, Taiwan recorded exports of US$2.154 billion for machine tools and related accessories and components in 2020, decreasing 29.7% on year mainly due to impacts of the pandemic. China was the largest market accounting for 35.1% of the total, followed by the US (12.7%), Turkey (7.7%), Russia (3.8%), Vietnam (3.7%), Thailand (3.4%), India (3.0%), Japan (2.8%) and the Netherlands (2.4%).
Despite optimistic outlook on exports in 2021, Taiwan-based makers will face three risks: Fluctuation in material costs; cargo container shortages; appreciation of the Taiwan currency, Hsu indicated.
Eric Chuo, president for Hiwin Group, and Yen Jui-hsiung, chairman for Tongtai Machine and Tool, jointly urged Taiwan-based makers to transform businesses to produce higher value-added smart machine tools.
