Taiwan's machine tool industry has had a hard time recently, and it has suffered a severe blow due to the epidemic. According to Taiwanese media reports, on August 14, Zhuo Yongcai, president of Shanghai Silver Tool Machinery Group, said: "If the government does not rescue the tool machine industry, the worst case may be one-third of the tool machine factories will face bankruptcy by June next year!" He suggested that the Taiwan government allocate project funds as soon as possible, purchase basic and standard machine tool products such as lathes, milling machines and comprehensive processing machine tools from manufacturers, and provide them to Taiwan colleges and universities to help the industry overcome difficulties.
It is understood that Taiwan's machine tool export value decreased by nearly 40% in July, which is far worse than the decline in mechanical equipment exports. In July, Taiwan's export value of machinery and equipment was US$2.095 billion, a year-on-year decrease of 12.5%. Among them, the export value of machine tools in July was US$164 million, a year-on-year decrease of 39.3%, a new low in the same period in recent years. The export value of machinery and equipment in the first seven months was US$14.478 billion, a year-on-year decrease of 10%, and the annual decrease expanded to 13%. Among them, the export value of machine tools in the first seven months was US$1.274 billion, a year-on-year decrease of 32.1%.
President Zhuo Yongcai said that orders for Japanese machine tool industry slowly rebounded in June and July, but the mainland market declined due to the impact of the epidemic. 35% to 40% of Taiwan's machine tools were sold to the mainland and Hong Kong. There has not been any improvement yet. The prosperity of the machine tool industry will not be good before the end of the year. Only industries such as semiconductors and intelligent manufacturing are in good prosperity. "Doing three or four" has become the norm for Taiwan's machine tool industry.
Taiwan Machine Tools and Components Association Chairman Xu Wenxian said that due to the double impact of the epidemic and the appreciation of exchange rate, machine tool factories and parts industries generally receive orders in single digits. There was a 3.0 relief subsidy in July, and the number of manufacturers with unpaid leave increased. It is estimated that the export value of machine tool will decrease by 40 to 50% year-on-year this year.
Taiwan media said that at present, more than 90% of traditional industrial products in Taiwan's export orders are produced in Taiwan, among which machine tool orders mostly come from short-term urgent orders brought about by the mainland order transfer effect, and will not last long; secondly, due to the unresolved lockdown of European and American automobile factories, it affects machine tool order acceptance and shipment. The stock of machine tool parts is generally full, causing double damage to inventory depreciation losses and capital backlogs. If the second epidemic recurs, global consumption continues to shrink, foreign customers are temporarily suspended from pulling goods, and the recovery period may be postponed to the second to fourth quarters, which may even trigger a financial crisis for manufacturers.
Several months ago, Zhuo Yongcai suggested that based on emergency rescue but poor, the government should allocate 10 billion yuan to purchase lathes, milling machines and comprehensive machining centers from Taiwanese machine tool practitioners to create demand, which can not only rescue Taiwan's machine tool industry, but also replace old equipment for colleges and vocational schools and cultivate talents.
Taiwan media believes that machine tool manufacturers need to use government subsidies to eliminate old equipment, get rid of low-gross profit products that only make lathes in the past, and actively transform and produce high-value-added products, such as intelligent machine tools, industrial robots, unmanned transport vehicles and automatic warehousing, the Internet of Things, artificial intelligence, etc.; in addition, small and medium-sized enterprises have limited resources, so they may as well cooperate with colleges and universities to develop high-end products to make advance deployments in the future economic recovery.